Judge Temporarily Halts Georgia Fee on Federally Subsidized Phones

The Lifeline program was set up under President Reagan to ensure the poorest citizens have phone access in case of emergencies.

In October, the Georgia Public Service Commission passed a rule requiring wireless companies to collect the $5 fee from Lifeline customers. It was part of an effort to cut down on what commissioners said was widespread fraud in the program.

A trade group of wireless providers, CTIA – The Wireless Association, challenged the fee in federal court.

John Heitmann, an attorney representing wireless providers Telrite and iWireless in the case, argues the fee oversteps the state’s authority and unfairly impacts hundreds of thousands of Georgians who use the program as intended.

“Federal law preempts the PSC from regulating rates for wireless carriers and I think consumers should not be punished for the act of a very small number of unscrupulous consumers who violate program rules,” said Heitmann.

In the court order, the judge agreed that was a valid enough basis to stop the fee from going into effect while the case plays out in court.

Heitmann said the judge’s order bodes well for a permanent decision overturning the fee.

“A significant number of Georgians would be forced off the Lifeline program just because they couldn’t afford to pay the $5,” said Heitmann.

The state can appeal the decision, but it’s unclear if that will happen. PSC Chairman Chuck Eaton, who in October voted against the fee, said he’s consulting with state attorneys on how to move forward.