The California Public Utilities Commission (CPUC) approved a new set of wireless California LifeLine benefits on Oct. 8, simultaneously providing eligible customers with more data under the existing $20 monthly state subsidy and reducing the reimbursement providers receive for activating service. The decision, D.26-10-034, was item 49 on the commission's telecommunications agenda, with all five commissioners voting in favor.
The adopted framework establishes three zero-copay wireless tiers, each including unlimited talk and text. These tiers offer 8 gigabytes of data with a 24-hour portability freeze, 15 gigabytes with a 60-day freeze, or 20 gigabytes with a 90-day freeze. According to CPUC decision materials, these tiers must support standard 4G or 5G speeds and allow tethering. Customers who qualify for the federal $9.25 mobile Lifeline benefit are eligible to receive an additional 4.5 GB under the new rules.
In conjunction with the expanded data, the commission also reduced the reimbursement for wireless activation or connection services. This payment to providers was cut from as many as two $39 payments per service year to a single $15 reimbursement per participant per year. CPUC materials indicate this change is intended to track lower prepaid-market activation fees. However, public commenters, including residents and representatives of St. Francis Manor, opposed the reduction, cautioning that it could affect the availability of free phones and tablets for participants.
New requirements were also added for customers who cease using their wireless service. A subscriber who has not used their service for 30 consecutive days must receive a clear notice. Following this notification, the subscriber has an additional 15 days to use the service before potential de-enrollment. Qualifying usage includes activities such as making an outbound call, using data, purchasing additional data, answering an incoming call from someone other than the provider or its agent, directly confirming with the provider that service should continue, or sending a text message. Providers are now mandated to report extended periods of nonuse and monthly removals when submitting reimbursement claims. Additionally, providers must notify all customers of this rule change within 45 days of the decision’s issuance.
The CPUC stated in its Oct. 8 release that approximately 1.46 million California households participating in both the state and federal programs would receive more than double their previous data allowance. This figure should not be confused with a separate CPUC annual report figure, which cited approximately 1.46 million California LifeLine subscribers as of June 30, 2024.
The decision took effect immediately upon its issuance on Oct. 8. However, the CPUC’s final signed decision and the General Order 153-A attachment should be consulted for specific deadlines governing tier availability, reimbursement claims, or provider filings. The Oct. 8 CPUC voting meeting also included discussions of the proposal, with low-income-service advocates raising concerns about the reimbursement changes.