8/23 FCC Ex Parte Highlighting Need to Protect Lifeline Participants, Low-Income Consumers Amid Verizon TracFone Merger

New America's Open Technology Institute met with the staff of Federal Communications Commission (Commission) Chair Jessica Rosenworcel to discuss Verizon's proposed acquisition of TracFone and the impact the merger would have on low-income consumers and the Lifeline program. Common Cause joined OTI for the meeting, in which the two organizations highlighted shortcomings of recent concessions Verizon made in an effort to receive the Commission's approval. OTI and Common Cause highlighted the need to implement strong enforcement mechanisms for whatever conditions the Commission potentially adopts. Further, the two highlighted the presence of possible loopholes in Verizon's current proposed conditions. The introduction to the ex parte letter is available below:

On August 19, 2021, Sarah Morris, Joshua Stager, and Amir Nasr of New America’s Open Technology Institute (“OTI”) and Yosef Getachew and Jonathan Walter of Common Cause met via phone with Acting Chairwoman Jessica Rosenworcel’s Acting Chief Legal Advisor Umair Javed and Acting Legal Advisor for Wireless and Public Safety Ethan Lucarelli. During the call, the parties discussed Verizon’s proposed acquisition of TracFone from América Móvil. OTI and Common Cause continue to have serious concerns about the transaction’s potential to undermine the Lifeline program and raise prices for low-income consumers.

OTI and Common Cause emphasized that Verizon has a burden to demonstrate that the merger will benefit the public interest—not merely that it would avoid harm. The conditions recently proposed by Verizon and outside parties reflect a recognition of this burden and of the plausible concern that the merger could inflict competition and equity harms. At a minimum, the proposed conditions should be seen as the floor, not the ceiling, for any potential remedy the Commission might be considering. Accordingly, OTI and Common Cause discussed several areas of concern about possible remedies.