$1.6 bîllíon for low income cellphones?

[❤ mollymouser ❤]

news.yahoo.com/washington-footing-cell-phone-bill-millions-low-income-202500656.html

Washington Footing the Cell Phone Bill for Millions of Low Income Americans

Last year, a federal program paid out $1.6 billion to cover free cell phones and the monthly bills of 12.5 million wireless accounts. The program, overseen by the FCC and intended to help low-income Americans, is popular for obvious reasons, with participation rising steeply since 2008, when the government paid $772 million for phones and monthly bills. But observers complain that the program suffers from poor oversight, in which phones go to people who don't qualify, and hundreds of thousands of those who do qualify have more than one phone.

Last summer, a Pittsburgh Tribune-Review story shed some light on a government program that relatively few Americans knew existed. (Read more about it here.) The Lifeline program provides low-income Americans with free cell phones (basic ones such as those made by Tracfone, not smartphones) and covers up to 250 free minutes each month. As many as 5.5 million residents in Pennsylvania alone could qualify for the program, which is funded primarily by the Universal Service Fund fee added to the bills of land-line and wireless customers.

The program came to be after the Telecommunications Act of 1996 was passed, and the FCC created the Universal Service Fund to help "to promote the availability of quality services at just, reasonable, and affordable rates," among other things. All telecommunications carriers must pay into the fund, and many do so by tacking on a fee to each of their customers' bills. It's probably added into your monthly wireless bill and your landline bill, if you still have one.

The Universal Service Fund provides discounts on phone services, or in some cases, entirely free services to low-income Americans. The fund helps pay for landlines or cell phones, whichever the recipient prefers. There's also a one-time discount of up to $30 to cover an installation fee or a cell phone. Considering how cheap some cell phones are nowadays, the money more than covers the costs of a basic phone. Then, the fund covers phone bills to the tune of $10 a month, which typically translates as 250 minutes for wireless plans of the types of phones we're talking about. Americans who receive food stamps, Medicaid, or other federal aid, or who earn up to 135% of the federal poverty guidelines, qualify for the program.

Now, Bloomberg Businessweek reports, we have a pretty good idea of how much the program pays out -- and how quickly it's growing as more and more people find out about it. In 2011, Lifeline paid out $1.6 billion, more than double the amount paid in 2008 ($772 million).

What's more, an FCC audit of the program last year showed that many participants in the program were taking more than their fair share.

According to Businessweek:

269,000 wireless Lifeline subscribers were receiving free phones and monthly service from two or more carriers.

Senator Claire McCaskill (D-Mo.) has been taking a closer look at the program since she personally received an invitation to apply for a free, government-subsidized cell phone in the mail. McCaskill has asked the FCC to investigate Lifeline. As a result, the FCC is building a database to see if a subscriber has more than one subsidized phone. In other words, until recently, such a database didn't exist.

The FCC, which announced the changes by using the euphemism that it is "modernizing" Lifeline, has set a goal of saving $200 million on the program in 2012. After eliminating nearly 270,000 of the duplicate subscriptions discovered in the audit last year, the FCC said it has already "saved" $33 million.

[billisonboard]

Hope this doesn't become a baby and bathwater issue. I support the basic program. Also support working to minimize abuse (with the full understanding that elimination of abuse is not possible). Hope that abuse doesn't lead to cancellation of the program.

[zibazinski]

I'm okay with those that are seniors getting help with their phone bills. The rest is total bs and someone getting a kickback.

[swamp]

Feb 9, 2012 14:03:25 GMT -5 billisonboard said:

Hope this doesn't become a baby and bathwater issue. I support the basic program. Also support working to minimize abuse (with the full understanding that elimination of abuse is not possible). Hope that abuse doesn't lead to cancellation of the program.

[jupe36]

I know for many years they provided senior citizens with a cell phone that was only capable of calling 911. I thought that was a great idea. I was under the impression it was a free humanitarian type service from the phone company. Why can't they just provide that type of service instead of having 250 minutes.

[resolution]

I got a flyer in the mail from a cell company that would pitch in a free cell phone and sign me up for the program if I filled out a small postcard-sized form pretending I was eligible. Seems like they are trying to expand their market share with a mass market campaign without any thought for fraud prevention.

[rockon]

Why would anyone be surprised with the result of yet another government operated giveaway? It's hard to believe they can't find places to cut spending when crap like this is still going on but once a program is rolling it is political suicide to even discuss stopping it.

[Savoir Faire-Demogague in NJ]

Anyone wondering or complaining that the middle class is disappearing or becoming extinct, it is because the govt is providing a middle class lifestyle to the low income population for free.

Whether it is a free cell phone, food stamps(free food), school breakfast & lunch, low income/affordable housing mandated to be build in middle class neighborhoods, and now free contraceptives.

[jkapp]

Feb 9, 2012 14:54:37 GMT -5 rockon said:

Why would anyone be surprised with the result of yet another government operated giveaway? It's hard to believe they can't find places to cut spending when crap like this is still going on but once a program is rolling it is political suicide to even discuss stopping it.

Exactly...and I love how liberals condemn the "greedy, thieving" corporations but seem to have no issues with these government programs pissing away billions of forcefully confiscated tax dollars.

[fairlycrazy23]

These type of programs should only be at the state level.

[whoisjohngalt]

Anyone wondering or complaining that the middle class is disappearing or becoming extinct, it is because the govt is providing a middle class lifestyle to the low income population for free.

Whether it is a free cell phone, food stamps(free food), school breakfast & lunch, low income/affordable housing mandated to be build in middle class neighborhoods, and now free contraceptives.

karma

[Savoir Faire-Demogague in NJ]

Feb 9, 2012 15:14:23 GMT -5 whoisjohngalt said:

Anyone wondering or complaining that the middle class is disappearing or becoming extinct, it is because the govt is providing a middle class lifestyle to the low income population for free.

Whether it is a free cell phone, food stamps(free food), school breakfast & lunch, low income/affordable housing mandated to be build in middle class neighborhoods, and now free contraceptives.

karma

[vandalshandle]

Cell phones are totally unnecessary. In fact, they are a real pain in the ass. As far as I am concerned, cell phones, as well as car alarms should never have been invented, and the world would be a better place without them. And did I mention that they are a pain in the ass?

[upstatemom]

I would support a program that was for emergencies. We have seen the commercials on TV for this program for a few years. It has always irked me that it starts off trying to get sympathy saying the person does not have a phone for emergencies , then it proceeds to have the same person say I have so many minutes and texting, I can call my family when ever I want. What happened to the emergency angle? just another program to suck the life from taxpayers.

[Deleted]

I'll just use an excuse that's circled these boards and the old boards for awhile:

But it's only $1.6b...that's just a drop in the bucket. It's only $54b for this program...that's nothing.

Yeah.....but these amounts keep adding up.

Note: For anyone that plans on using the "Yeah, but the <whatever> party also does it!" excuse, notice I didn't single out a political party. They both waste massive amounts of money and added up could be HUGE savings.......but, but, but....it's for the "poor"!

[reasonfreedom]

I rather see them make a program so I can get a free gun and ammo, a gun is more of necessity than a phone is. You can hunt and get food from a gun, you can't throw a cell phone at a deer and kill it.

[billisonboard]

Feb 9, 2012 18:38:21 GMT -5 reasonfreedom said:

I rather see them make a program so I can get a free gun and ammo, a gun is more of necessity than a phone is. You can hunt and get food from a gun, you can't throw a cell phone at a deer and kill it.

But a cell phone is more effective for pizza delivery (of course the gun is more effective for getting the pizza at little or no cost).

[AgeOfEnlightenmentSCP]

Feb 9, 2012 14:56:28 GMT -5 Savoir Faire-Demogague in NJ said:

Anyone wondering or complaining that the middle class is disappearing or becoming extinct, it is because the govt is providing a middle class lifestyle to the low income population for free.

Whether it is a free cell phone, food stamps(free food), school breakfast & lunch, low income/affordable housing mandated to be build in middle class neighborhoods, and now free contraceptives.

In Memphis, they want to provide school dinners. Free up that SNAP money for booze and hookers.

[AgeOfEnlightenmentSCP]

Feb 9, 2012 14:56:28 GMT -5 Savoir Faire-Demogague in NJ said:

Anyone wondering or complaining that the middle class is disappearing or becoming extinct, it is because the govt is providing a middle class lifestyle to the low income population for free.

Whether it is a free cell phone, food stamps(free food), school breakfast & lunch, low income/affordable housing mandated to be build in middle class neighborhoods, and now free contraceptives.

When we on the right say "European Socialism", this is what we mean. Cradle to grave government dependency.

[handyman2]

To me this is subsidizing the cell phone companies and cell phone manufacturers through the back door.
Now you know why all the kids standing on the street corner peddling drugs has a cell phone or two or three.

[formerexpat]

Last year, a federal program paid out $1.6 billion to cover free cell phones and the monthly bills of 12.5 million wireless accounts.

Just in case the math hasn't been done on this; $1.6bn / 12.5m accounts = $128 per account. That's excessive.

Hope this doesn't become a baby and bathwater issue. I support the basic program. Also support working to minimize abuse (with the full understanding that elimination of abuse is not possible). Hope that abuse doesn't lead to cancellation of the program.

But, I agree with Bills about the basic program. This program is anything but basic; that's more than twice the amount of my wife's plan [and she's got data and all types of goodies].

[Deleted]

Why would anyone be surprised with the result of yet another government operated giveaway? It's hard to believe they can't find places to cut spending when crap like this is still going on but once a program is rolling it is political suicide to even discuss stopping it.

Yet another socialist make everybody equal plan. Take from those that work & re distribute to those that don't & the above poster is right, once it starts it never ends. The truth is that you can justify anything for people because there is always something to use as justification. I find all of this give away crap outrageous & would fully support stopping ALL welfare programs (& yes, letting millions of snot nose babies starve) rather than supply just one cell phone to a welfare recipient.

[resolution]

Feb 9, 2012 20:40:34 GMT -5 formerexpat said:

But, I agree with Bills about the basic program. This program is anything but basic; that's more than twice the amount of my wife's plan [and she's got data and all types of goodies].

Your wife gets all of that for $10 a month ($128 per year)? Granted I have mixed feelings about the whole thing but it doesn't seem like that kind of money is supporting a luxury plan.

[Savoir Faire-Demogague in NJ]

Feb 9, 2012 20:17:12 GMT -5 AgeOfEnlightenmentSCP said:

Feb 9, 2012 14:56:28 GMT -5 Savoir Faire-Demogague in NJ said:

Anyone wondering or complaining that the middle class is disappearing or becoming extinct, it is because the govt is providing a middle class lifestyle to the low income population for free.

Whether it is a free cell phone, food stamps(free food), school breakfast & lunch, low income/affordable housing mandated to be build in middle class neighborhoods, and now free contraceptives.

When we on the right say "European Socialism", this is what we mean. Cradle to grave government dependency.

It is one big, huge, gigantic financial circle jerk over there.

[fairlycrazy23]

Feb 9, 2012 21:49:44 GMT -5 @patstab said:

You know what? AT&T offers Lifeline service, I have it. I had no idea it was for low income or anything. A few years back I told them I was dropping my landline because we had metro service and the bill kept going up to $100 and more. I had a cell so was just going to drop it, the customer service lady says would you like Lifeline service and she explained that it was only $14 a month. That I have 25 local incoming and outgoing calls but no long distance service and information was a fee. I can also call 800 numbers free on it.

I said sure that's all I need anyway so we still have it. It's about $14 a month now, maybe more with taxes, but noone ever said anything about low income. I was reading on here about lifeline, wonder if its the same. Do you suppose its because our daughter is mentally challenged and on medicaid, could that come up some way cause we sure aren't low income. Interesting

Just sounds like a plan to get people that have a cell phone as there primary phone to keep paying for a land line. That $14 a month is probably almost 100% profit.

[reasonfreedom]

Feb 9, 2012 19:41:17 GMT -5 billisonboard said:

Feb 9, 2012 18:38:21 GMT -5 reasonfreedom said:

I rather see them make a program so I can get a free gun and ammo, a gun is more of necessity than a phone is. You can hunt and get food from a gun, you can't throw a cell phone at a deer and kill it.

But a cell phone is more effective for pizza delivery (of course the gun is more effective for getting the pizza at little or no cost).

The deer is way more healthier for you. Trying to stay away from diabetes.

[reasonfreedom]

Feb 9, 2012 20:40:34 GMT -5 formerexpat said:

Last year, a federal program paid out $1.6 billion to cover free cell phones and the monthly bills of 12.5 million wireless accounts.

Just in case the math hasn't been done on this; $1.6bn / 12.5m accounts = $128 per account. That's excessive.

Hope this doesn't become a baby and bathwater issue. I support the basic program. Also support working to minimize abuse (with the full understanding that elimination of abuse is not possible). Hope that abuse doesn't lead to cancellation of the program.

But, I agree with Bills about the basic program. This program is anything but basic; that's more than twice the amount of my wife's plan [and she's got data and all types of goodies].

$128 for 250 minutes, somebody is getting kickbacks.

[billisonboard]

Feb 10, 2012 10:47:56 GMT -5 reasonfreedom said:

Feb 9, 2012 20:40:34 GMT -5 formerexpat said:

Just in case the math hasn't been done on this; $1.6bn / 12.5m accounts = $128 per account. That's excessive.



But, I agree with Bills about the basic program. This program is anything but basic; that's more than twice the amount of my wife's plan [and she's got data and all types of goodies].

$128 for 250 minutes, somebody is getting kickbacks.

Always in the details.

The $128 is the average annual expenditure per account. The 250 minutes is an "up to" monthly that some get. Looking at only minutes, it would be 3000 for the $128. However, minutes are only one piece that is coming out of that average. Phones, connect fees, etc also factor in.

I consider the money for this program a small price to pay for helping low income people have access to the wider world. I understand that there are abuses and, if you only focus on those, it is frustrating to see individuals doing so. But there are also times that these phones save lives in emergencies, help people gain/stay employed, and improve the lives of people isolated by mobility issues. Yes, work on eliminating the abuses. Just don't end a good program because of them.

[resolution]

Feb 10, 2012 10:47:56 GMT -5 reasonfreedom said:

$128 for 250 minutes, somebody is getting kickbacks.

Actually that works out to a better deal than I am getting on my prepaid phone. It comes out to $10.60 per month for 250 minutes. On my prepaid phone I am paying approx $7 per month for 40 minutes. I don't actually use all 40 minutes so I wouldn't trade plans, but if I were pushing my limits that would be a great upgrade.

[reasonfreedom]

Feb 10, 2012 11:01:52 GMT -5 billisonboard said:

Feb 10, 2012 10:47:56 GMT -5 reasonfreedom said:

$128 for 250 minutes, somebody is getting kickbacks.

Always in the details.

The $128 is the average annual expenditure per account. The 250 minutes is an "up to" monthly that some get. Looking at only minutes, it would be 3000 for the $128. However, minutes are only one piece that is coming out of that average. Phones, connect fees, etc also factor in.

I consider the money for this program a small price to pay for helping low income people have access to the wider world. I understand that there are abuses and, if you only focus on those, it is frustrating to see individuals doing so. But there are also times that these phones save lives in emergencies, help people gain/stay employed, and improve the lives of people isolated by mobility issues. Yes, work on eliminating the abuses. Just don't end a good program because of them.

That makes more sense. I still think our tax dollars should be used for roads or community used functions. I saved up to by my car and pay for college working at McDonalds, I think people can save up to by their own phone. All we are doing is depreciating peoples self worth by giving them items they have not earned through hard work. Supporting laziness gets you more laziness.