For months now, there has been a COVID-19-related supplement to the federal Lifeline program. Known as the "Emergency Broadband Benefit," or EBB, it enhances the standard service. Designed for low-income people who require access to free or significantly discounted wireless service, Lifeline has a standard free service offering.

Equal to $9.25 of federal subsidies per month, the standard Lifeline service offering is typically 3.0 to 4.5 GB of 4G LTE data, up to 1000 minutes of calls per month, and unlimited texting. The EBB extension of Lifeline originally added $50 per month to this $9.25 per month, making it worth a whopping $59.25 per month.

This enhancement requires providers to make unlimited 4G LTE data available, make minutes per month unlimited, and still provide unlimited texts to users each month. Important changes are coming to the program, however!

Reduction in Federal Subsidies to EBB Extension

Originally, the FCC determined that an additional $50 per month to Lifeline as the EBB would be adequate for both users and their providers. Although the instant money push to traditionally cash-strapped Lifeline providers helped out immensely, there are many reasons that the FCC called for a reduction in this subsidy.

Though the plan that costs six times what the original Lifeline service must be "unlimited" data, Lifeline providers often cap "high-speed" data at somewhere around 20 GB per month or so. It then goes down to the speed of Internet comparable to dial-up Internet. Unfortunately, these services often are highly deprioritized already.

Service deprioritization is when a mobile provider slows service down for Mobile Virtual Network Operators (MVNOs). Every Lifeline provider is technically an MVNO that has service from cell towers from a major provider. However, service for Lifeline users is almost always significantly worse.

Pandemic-Era EBB Rate Reduction

After over a year of enhanced Lifeline service fiscal support, the FCC announced that the program has become semi-permanent. However, the FCC also pointed out that service has been still lackluster; it appears that some Lifeline providers essentially are spending the same amount and making actually more than their non-subsidized, commercial counterparts.

Though the original EBB subsidy was $50 per month, the FCC said that for approximately the duration of the COVID-19 pandemic at minimum, the agency intends to retain most original tenets of it. The service subsidy rate will decrease starting around 2022 to $30 per month for those who subscribe to the EBB.

Though the $20 per month reduction is somewhat of a disappointment to providers, the FCC has stated that, essentially, the service expectations will remain the same for consumers. This is because it still likely more than covers providers' support, and it is still approximately quadrupling the rate providers got paid in exchange for service that, for most users, remains relatively similar.

Other Factors to Consider as the EBB Goes Forward

The EBB was originally intended to be a very temporary, six-month program. It was largely intended to ensure that wireless service be equitable during the original peak of the COVID-19 pandemic. However, its popularity grew; this is partially due to the fact that the Lifeline program gained many competitors to its larger-scale, older providers who were largely regional wireless service monopolies for lower-income consumers.

Remember that the EBB will not be losing its up to $100 in value program that is aimed at offering computer hardware to Lifeline consumers. However, there is a stringently enforced rule stating that an Internet connection is required through the EBB to the device. In other words, consumers may get a desktop or other fixed computer. However, this device's Internet connection must be based on an EBB-powered wireless connection.

This hardware incentive is an excellent option for those who already have phone service. It's the first time in history that the Lifeline service has offered Internet-only supplements. You'll still receive the same amount of subsidies towards your service even if you already have phone service and simply want either a desktop under $100 or a $100 credit towards a new or refurbished desktop; the desktop must come from the same provider with whom you hold your EBB service.