If you’re a traditional telephone customer, you might be paying for a dead man’s subscription.
In January, the Office of Inspector General at the Federal Communications Commission found that the Universal Service Fund was riddled with fraud. Its Lifeline Program, meant to deliver broadband discounts to low-income households, was paying California companies for dead subscribers. Sadly, this kind of irresponsibility affects personal budgeting.
No surprise then that American consumers feel they pay too much for their phone bills. It’s high time for Congress to act.
Within the Lifeline Program, fraud is nothing new — it’s embedded deep within its structure. Broadband service providers collect USF payments for each low-income household they claim to serve, while traditional telephone customers pick up the tab. A dubious honor system is all that Lifeline beneficiaries — the living ones — can count on.
Nate Karren is a Policy Analyst with the American Consumer Institute, a nonprofit education and research organization. Follow Nate on X @NateKarrenOnX.