The FCC also perceives that a broadband adoption gap exists that needs to be reduced. The FCC wants improve the digital literacy training of all citizens at schools and libraries.

Expanded Lifeline means expanded access to broadband services for low income citizens. This benefits them as well as organizations that need to communicate with low income citizens.

A 20 minute video, "FCC Chairmen Genachowski Makes an Announcement at Third Way" in Washington D.C., discusses Lifeline support by the FCC.

Lifeline is a 20-year FCC program that has helped low-income Americans afford basic telephone service. Lifeline is the Commission’s implementation of Congress’s directive to ensure the availability of basic communications services to all Americans. Lifeline recipients use their phones to help in finding a job, setting up childcare, calling 9-1-1 during an emergency. The FCC is proposing reforms that could save the Lifeline program up to $2 billion over the next few years.

The idea is that the essential national infrastructure should support broadband services and it should be available to all citizens. The FCC has reviewed all the applicable programs to ensure that this is possible through Universal Service. The FCC has repealed more than 200 outdated regulations and identified 25 sets of outdated data collection that can be eliminated. Intercarrier compensation reforms are expected to eliminate billions of dollars in subsidies hidden in consumers' bills.

Programs need to be modernized to deal with the changing world of communications and to benefit citizens. Fraud reduction and increased efficiency were two themes mentioned in the presentation. He spoke of $67 million collected in penalties and settlements in fiscal year 2011.

The presentation outlined the proposed reforms to the Universal Service Fund's Lifeline program to reduce waste, fraud, and abuse and to advance broadband adoption. This would include:

* Establishing clear goals for the Lifeline program.
* Developing metrics that would measure the performance of the goals.
* Establishing a National Lifeline Accountability Database. This would prevent multiple carriers from receiving FCC financial support for the same subscriber.
* Creating a Lifeline budget anticipating that the program size will fluctuate as the economy improves or worsens and the Lifeline-eligible population grows or decreases.
* Establishing criteria for Lifeline eligibility to ensure access to the service for all qualified low-income consumers with the recognition of the unique circumstances facing Tribal communities.
* Every two years, independent audits would be carried out of every carrier that receives more than a specified annual financial support from the program.

The reforms are expected to start the process of modernizing Lifeline, expanding it from basic telephone service to include broadband access. The proposed modernization assumes that broadband access is not a luxury but a necessity. Primary examples of broadband access would be finding a job online, accessing education and healthcare information and services. In addition, expanding broadband access will allow companies to expand their communications opportunities with their customers--although this is not one of the stated goals for the FCC.

The initial goal is to "Establish a Broadband Adoption Pilot Program using savings from other reforms to test and determine how Lifeline can best be used to increase broadband adoption among Lifeline-eligible consumers." The commission continues: "Starting this year, the program will solicit applications from broadband providers and will select a number of projects to fund. Lifeline will help reduce the monthly cost of broadband service, but applicants will be expected to help address other challenges to broadband adoption, including the cost of devices and digital literacy."

The FCC also perceives that a broadband adoption gap exists that needs to be reduced. The FCC wants improve the digital literacy training of all citizens at schools and libraries. This is expected to increase the adoption of broadband services. The FCC’s Connect-to-Compete initiative is designed to eliminate the barriers through digital literacy training and the availability of low cost broadband services.

The end results may be:

* Tighter control of USF disbursements
* Lower revenue for carriers due to the elimination of padded subsidies
* Improved E-Rate program that allows greater flexibility and ensures that high capacity broadband access will be covered
* Greater access by customers to the product and service providers
* Reducing the digital divide that exists for low income citizens
* Increased commerce
* Allowing low income citizens to benefit from the wealth of information available over the Internet