FCC Reminds Lifeline Providers of Requirement to Update Ownership Information Prior to Ownership Changes

The Wireline Competition Bureau issued a Public Notice reminding Lifeline providers that have filed a Lifeline Compliance Plan that they must seek approval from the Bureau prior to transferring corporate ownership or control to a new entity.

Providers that do not use their own facilities to provide Lifeline service must submit and receive Bureau approval of a Lifeline Compliance Plan. The Lifeline Compliance Plan addresses, among other things, the provider’s ability to comply with the Lifeline service provisions and program integrity obligations, details on how and where the provider will provide service, details of the Lifeline offering, subscriber enrollment and reimbursement processes, and sample marketing materials. As part of the plan, the provider must also identify the provider’s holding company, operating company and all affiliates. The approval of the Lifeline Compliance Plan is specific to the entity and its ownership at the time of approval. Accordingly, a provider that operates pursuant to a Lifeline Compliance Plan must receive approval from the Bureau prior to making any material changes in ownership or control.

Consequences of failing to obtain the requisite approval can include losing access to Lifeline program systems and processes, monetary recovery, forfeiture and other enforcement actions. The Bureau may also deny a pending amended Lifeline Compliance Plan in the event it discovers material changes were made absent prior approval and/or refer the provider to the Enforcement Bureau for investigation.

If you have questions or would like more information about the Lifeline program rules, contact an attorney in our Broadband, Spectrum, and Communications Infrastructure Practice Group.