FCC Blocks 9 Companies From Providing Low-Income Internet Access

broadband

FCC regulators are telling nine companies that they won’t be allowed to participate in a federal program intended to help them provide affordable internet access to low-income consumers — weeks after those companies were approved to do so.

The Lifeline program, established in 1985, provides discounted phone and internet service for people in poorer communities to connect with family and access resources for jobs and education. The Federal Communications Commission expanded the program to include broadband last year, and now gives participating households a $9.25 per month credit that they can use for internet access.

The move, announced Friday by FCC Chairman Ajit Pai, reverses a decision by his Democratic predecessor, Tom Wheeler. In a statement, Pai called the initial decisions a form of “midnight regulation.”

“These last-minute actions, which did not enjoy the support of the majority of commissioners at the time they were taken, should not bind us going forward,” he said.

The status of the nine companies will be changed to “pending,” according to CNN, and the FCC will reconsider their participation in the program. Regulators had approved four of those companies on Dec. 1 and five on Jan. 18.

As many as 13 million Americans who did not have broadband service at home may have been eligible for Lifeline, the FCC found. Roughly 900 service providers participate in the Lifeline program, according to the Washington Post.

For Kajeet Inc., one of the companies that was initially granted permission to provide service through Lifeline, the news comes as a shock and a setback.

“I’m most concerned about the children we serve,” Kajeet founder Daniel Neal told the Washington Post. “We partner with school districts — 41 states and the District of Columbia — to provide educational broadband so that poor kids can do their homework.”

Since becoming FCC chairman last month, Pai has stated that closing the digital divide is a central tenet of his policy agenda. While the vast majority of Americans do have access to internet service, there remain distinct gaps in United States broadband penetration, particularly among seniors, minorities and the poor.

Last week’s move seems to run counter to Pai’s stated goals of closing the digital divide.

“The most obvious fact in our society is that high-speed internet is astronomically expensive for the middle class and down,” said Gene Kimmelman, president of the consumer advocacy group Public Knowledge, in an interview with the Washington Post. “So in any way limiting the Lifeline program, at this moment in time, exacerbates the digital divide. It doesn’t address it in any positive way.”

About the Author

Richard Chang is associate editor of THE Journal. He can be reached at [email protected].

Featured

  • Minimalist binary data fragmentation

    Fragmented Data Is Quietly Undermining Student Success and Cybersecurity Hygiene

    Siloed tools, teams, budgets, and resources spread across departments and campuses generate massive amounts of data. However, fragmentation creates unnecessary exposure to security threats and inadvertently reduces student support because no one can see the whole picture.

  • digital brain with network connections

    Microsoft Moving to Internally Developed AI Models in Office Apps

    Microsoft is reportedly using its own in-house artificial intelligence models to handle some workloads in Excel and Outlook, offering new evidence that the company is moving its AI strategy beyond model development and into large-scale cost reduction.

  • AI user wearing orange safety vest

    California Governor Proposes Independent Watchdogs Within AI Safety System

    California Governor Gavin Newsom is proposing a new model of artificial intelligence regulation that would give independent organizations a formal role in evaluating the safety claims made by leading AI companies.

  • circuit patterns

    Anthropic Launches Lower-Cost Claude Sonnet 5

    Anthropic has released Claude Sonnet 5, positioning the model as its most autonomous mid-tier offering to date and a lower-cost alternative to its flagship Opus 4.8 system. The company said the model can plan multi-step tasks, operate tools such as browsers and terminals, and complete agentic work at a level that previously required larger and more expensive models.