Service providers shall not require contracts lasting more than two years for California LifeLine participants; and the terms offered to them must be comparable to the terms offered for other customers for the same services and/or devices, except as needed to comply with California LifeLine rules. Joint Consumers expressed concern with regards to contracts lasting more than one year. We recognize the validity of Joint Consumers’ concern. If a California LifeLine wireless provider signs up a participant for a contract term of more than a year, the California LifeLine provider must prominently disclose to the participant that if at any time the participant’s discounted service is terminated, he or she will be subject to the retail rates charged by the service provider for any service that the customer has received or used, in addition to any applicable early termination fees. In a subsequent ruling, we can explore possible methods for alleviating the disparity between the existing eligibility period and contracts lasting more than a year. In the meantime, the robust disclosures requirement in this Decision should be sufficient to adequately inform consumers about the program. Equivalent Rates for Purchasing Additional Voice Minutes The provider shall provide participants an option to purchase additional voice minutes. Moreover, the provider shall allow participants to purchase additional minutes of voice service at the lowest charge offered to other retail customers for comparable plans with similar services and/or features. Furthermore, the provider may offer plans in which service may end, e.g., phone operation ceases except for 911 calls and calls to special service numbers 211, 311, 511, 611, 711, and 811 when the participant has used all of the allotted voice minutes, but shall prominently disclose that the phone will cease operation
Service providers shall not require contracts lasting more than two years for California LifeLine participants; and the terms offered to them must be comparable to the terms offered for other customers for the same services and/or devices, except as needed to comply with California LifeLine rules. Joint Consumers expressed concern with regards to contracts lasting more than one year. We recognize the validity of Joint Consumers’ concern. If a California LifeLine wireless provider signs up a participant for a contract term of more than a year, the California LifeLine provider must prominently disclose to the participant that if at any time the participant’s discounted service is terminated, he or she will be subject to the retail rates charged by the service provider for any service that the customer has received or used, in addition to any applicable early termination fees. In a subsequent ruling, we can explore possible methods for alleviating the disparity between the existing eligibility period and contracts lasting more than a year. In the meantime, the robust disclosures requirement in this Decision should be sufficient to adequately inform consumers about the program. Equivalent Rates for Purchasing Additional Voice Minutes The provider shall provide participants an option to purchase additional voice minutes. Moreover, the provider shall allow participants to purchase additional minutes of voice service at the lowest charge offered to other retail customers for comparable plans with similar services and/or features. Furthermore, the provider may offer plans in which service may end, e.g., phone operation ceases except for 911 calls and calls to special service numbers 211, 311, 511, 611, 711, and 811 when the participant has used all of the allotted voice minutes, but shall prominently disclose that the phone will cease operation
86541587.docx