U.S. Government paid $1.6 billion in 2011 to cover the cellular bill for 12.5 million Americans
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Thanks to the Universal Service Fund, low-income Americans can get a discount or free service for a landline or a cellphone. The program gives a $30 discount for the activation of a handset, and covers $10 monthly on an actual wireless bill. This works out to about 250 free minutes with the kind of plan required for the basic handsets used in the program. Food Stamp recipients, those who receive Medicaid or other Federal Aid, or those who earn as much as 35% over the federal poverty guidelines, qualify for the program.
But as with any Government program, there are those who abuse the system. Businesweek says 269,000 Lifeline customers are getting free service from two or more carriers. Senator Claire McCaskill (D-Mo.) has requested that the FCC investigate and the agency has obliged by building a database to see if a subscriber has more than one subsidized phone. While that might have been a useful tool from the beginning of the program, the FCC says after "modernizing" Lifeline, it has set a target of saving $200 million this year by catching those using the system for more than one account. So far, after ridding the rolls of those 269,000 users with multiple accounts, the FCC says it has saved $33 million.
The next time you are complaining about how "laggy" your high-end smartphone is, or you are upset about the latest feature just added to the newest model which you missed out on buying (like that 3300mAh battery), be thankful that you don't have to qualify for a basic handset from Uncle Sam to obtain cellular service.
source: Time
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75 Comments
7. megadirk posted on 13 Feb 2012, 11:49 6 2
Yes, also the first time I've heard of this. Although I generally disagree with the idea of paying into a fund that gives other people things for free i.e. medical, groceries; cell phones are NOT a necessity. Yes, it's convenient but in no way does this need to be shelled out for free, no matter how entry level the phones are. At this point it doesn't seem like there is anything else for the government to give to the "low income" group, they've now covered anything you might need in life. Why ever stop using the handouts?
8. Droid_X_Doug posted on 13 Feb 2012, 11:57 3 3
Try checking how many minutes you used on your cell bill. I bet it is considerably more than 250. How would you like to be blocked from making phone calls after you hit the 250 minute point? Are you starting to get the idea that this 'lifeline' plan isn't exactly unlimited free calling that is paid for by other people paying their bill?
20. megadirk posted on 13 Feb 2012, 13:02 5 0
Not to get into a pissing contest, but I did actually check my minutes, and no, over the past year I haven't gone over 250 in any month. And I never mentioned anything about being unlimited. The point of paying for anybody's minutes is ridiculous. I can afford to pay for my own minutes, data plan, text messages, so thus I am able to pay for someone else's minutes as well? That's just stupid.
51. 14545 posted on 13 Feb 2012, 18:21 3 1
What's your point? Who cares if it is limited to '250 minutes'? The point is the government SHOULDN"T be paying for cell service. End of story. It doesn't matter if it is 2.5 minutes or 2,500 minutes. Typically those that are poor, are poor for a reason. Nobody held a gun to a single mothers head and said she had to procreate 2-3-4 or whatever times. Track down the "baby daddy" and make his a$$ pay for her "free" cell service. WE HAVE A DEFICIT OF 1.2-4 TRILLION, and DEBT north of 15 trillion. WE CAN"T AFFORD TO PAY FOR PEOPLES CELL SERVICE.
19. JC557 posted on 13 Feb 2012, 12:50 2 5
Except nowadays many employers require you to be reachable in as many ways as possible. More often than not, employers see cell phones as a more reliable means of reaching both applicants and employees.
22. megadirk posted on 13 Feb 2012, 13:11 5 0
I agree with this 100%. It cost a total of $30, if the phone isn't on sale, to activate an account and purchase the phone for Verizon's no contract service. The phone even comes with $10 airtime that lasts for 90 days. There is no reason that you can't get that on your own and have it as a phone that potential employers can get a hold of you buy, and if you already have a job it's also a very cost effective option. It's time for people to stop making excuses and relying on the government/fellow citizens and start being responsible for their own ways of communication.
32. remixfa posted on 13 Feb 2012, 14:42 2 4
they increased the taxes this year. Remember Obama talking about going after those "rich telecommunication companies", guess what, that was a new tax on YOUR bill. people need to pay attention and quit just thinking you know whats going on. because ya dont obviously. lol.
Its something like 2.50 on everyone's phone bill that goes toward this fund every month. check your detailed bill.. its been there for a while. And its a total waist of money. cheap trackphone my ass.. they take that tracphone simcard and stick it into used smartphones.. i see it too often.
people, you have a right to personal responcibility, not to mooch.. use your rights.
69. Tarkio posted on 14 Feb 2012, 02:52 0 0
Oh, it's a "waist" is it? This has nothing to do with Obama. If people are abusing the program, that should be addressed, absolutely. "You see it too often," lol. What does that mean? You see someone use minutes they get for free in a different phone? OMG! This is a travesty! Someone gave them an old phone and they talk the exact same 250 minutes on a different handset. That's a real scandal, indeed.
72. remixfa posted on 14 Feb 2012, 09:38 0 0
the whole program is a waist. and yes, the raise in taxes has everything to do with obama.
74. TerryCrowley posted on 15 Feb 2012, 04:51 1 0
I always thought you were one of the more intelligent posters on Phonearena but you're such dips**t you can't even spell waste right. Tard.
75. remixfa posted on 15 Feb 2012, 07:16 0 0
really.. the spelling police? really? i also confuse there, their, and they're all the time too. its called dyslexia. u dont want to see what my posts look like before auto correct picks up. auto correct doesnt always get the right form of the word as well. so, if you dont mind..... oi.
2. DirtyDan posted on 13 Feb 2012, 11:28 16 0
I don't think I should be thankful that I have a high end phone. I work hard and support myself to pay for my own phone and service. If I were given a high end phone and free phone service then I'd be thankful.
4. Adianshadows posted on 13 Feb 2012, 11:37 2 1
i was thinking the same exact thing. I'd rather save the 90$ a month and deal with a phone like that for free... yes it would suck but if you are on Federal Aide or have to use food stamps i highly doubt the speed of your free phone is any of your worries
25. thephoneguy92 posted on 13 Feb 2012, 13:24 0 0
Thank you for saying exactly what I was thinking
42. ngo2dd posted on 13 Feb 2012, 16:25 0 0
Why don't you go to the prepaid company and pay 35 dollar a month. You chose to stay with the 90$ and don't lied about wanting the basic phone if you have 250 minute for free.
27. Lucas777 posted on 13 Feb 2012, 13:53 6 1
honestly… since when is america a charity fund… i dont mine helping low-income people with (what should be only a few weeks of) unemployment, but this is just ridiculous…. i work hard for my money and lose 60% of it every month to taxes which go towards stuff like this… i mean im sorry they cant afford it, but thats life… cell phone service isnt a "necessity" to live
29. willardcw4 posted on 13 Feb 2012, 14:08 1 0
I didn't know there was a tax bracket of 60% (including federal and state).... over-exaggerating? Or do you live somewhere in Connecticut =D
30. Lucas777 posted on 13 Feb 2012, 14:39 0 0
no in california… including federal and state i pay 60 percent on income tax
36. ngo2dd posted on 13 Feb 2012, 16:03 1 0
LOL we all know you are lying. The highest tax bracket is 33% and that is for the one that is in the top 10% of earners. Your state and local does not add up to 27%








