The number of subscribers to the FCC’s Low-Income Program jumped...
The number of subscribers to the FCC’s Low-Income Program jumped by nearly 1.5 million from 2008 to 2009, and payments from the fund increased almost $180 million, the GAO reported Tuesday. Enrollment had been “relatively stable” from 2005 to 2008,…
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leveling off at about 7.1 million subscribers and about $823 million in payments, the agency said. The GAO attributed the spike to a decision by the Universal Service Administrative Co. to hand out prepaid wireless phones to recipients. Without a cap, the program’s budget will reach $1.4 billion by year-end, the GAO said. The FCC “has taken limited steps” to institute controls over the fund, but “these steps do not fully align with useful practices,” it said. The GAO urged the commission and USAC to impose a strict control system.