FCC lets wireless drink from the universal service trough...

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...they've designated TracFone, a wireless carrier, eligible to be declared "lifeline service" for rural areas.

This would allow rural Americans who might not be able to afford wireless service to discontinue their wireline service and use TracFone, and TracFone can offer discounts to those consumers by receiving subsidies under the Universal Service Fund. Quoth the order:

We find that TracFone's universal service Lifeline offering will provide a variety of
benefits to Lifeline-eligible consumers including increased consumer choice, high-quality service offerings,nd mobility.In addition, the prepaid feature, which essentially functions as a toll control feature, may be an attractive alternative to Lifeline-eligible consumers who are concerned about usage charges or long-term contracts. 

 

Many have complained that Universal Service is just a slush fund for the old wireline telcos. Not anymore. On the other hand, TracFone first asked about this in 2004. Why did this take 4 years to be finalized?

Also, where are the big 4 carriers on this? Wouldn't some Universal Service cash help them bolster their coverage caps and say, use the savings to deploy next generation service faster? If Wireless is a "lifeline" now, shouldn't they get some help maintaining it and use their money to improve everything else?

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First, apologies for the name change.  Last week was the inaugural edition of this feature and, well, there's tweaking to be done.  Sorry.Big, big things happened in the wireless world this past week.  It seems like every week is... Read More

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