Sprint was right to fight a Kansas Corporation Commission ruling ...

Fund underwrites, reduce the cost of phone service for low-income residents. FCC rules clearly say carriers should apply Lifeline discounts to the “lowest tariffed (or otherwise generally available) residential rate,” Alltel said in Aug. 9 comments. Competitive carriers have no tariffs, so “the only proper application” of the language is application of the Lifeline discount to the “lowest otherwise generally available rate,” Alltel said. The Kansas commission “attempts to apply the Lifeline discount to all of the generally available rates of non- tariffed carriers,” which is “contrary to federal law and the FCC rules,” Alltel said. But the Kansas body told the FCC that by its reading of the same language discounts can be applied to any “generally available” rate. “The FCC has allowed carriers to apply the Lifeline discount to plans other than their lowest-cost plan,” said the Kansas regulators, and has “refused to adopt rules that would prohibit carriers from offering vertical services such as Call Waiting and Caller ID.” Sprint raised the issue with the FCC out of fear that the Universal Service Fund for Lifeline would not reimburse it for discounts applied to calling plans other than the lowest-cost one. However, the Kansas Corporation Commission said it checked with the Universal Service Administrative Company and was told USAC never has taken the position that the discount can be applied only to the lowest-cost rate. The California Public Utilities Commission backed the Kansans, saying it has a similar rule. It said it shared Kansas regulators’ concern that it might be discriminatory to limit Lifeline customers to one plan.