Free Cellular Phone and Monthly Service

The Program: Lifeline

Free Cellular Phone and free Monthly Service (around 68 minutes) to "low income" people through Safelink and Tracfone.

Who is Eligible? 

 In order to be eligible for this program a person must either already receive government benefits through Food Stamps, Medicaid, Temporary Assistance for Needy Families, etc or have income less than or equal to 135% of the poverty level. That means, in Georgia, a family of four making around $29,000 a year or less would qualify for this service.

Cost of Services to Recipients
0 Dollars


Cost to Someone Purchasing Similar Service
With this question we will assume that I am buying a prepaid plan from Tracfone. First, a phone must be purchased. The cheapest ones they offer are $9.99, plus tax (of course!). Now to purchase minutes. In order to get about the same amount as the Safelink plan, I would need to buy about 200 minutes to stretch over 90 days. (68 x 3=204, so I am even buying fewer minutes.) This card costs $39.99, plus tax (of course!). So in order to purchase the same service for 3 months that the recipients of this program get, I would have to spend $50, plus tax (of course!). This is just in the first 3 months and then I would have to purchase more minutes.

Tax Dollars Going to Program Each Year
There are no direct funds coming from your paycheck for this program. You may think, "Well then what is the problem?" The problem is that if you own a home phone or a cell phone, you are paying for this service. It is called the Universal Service Fund...check your next bill. I know on my home phone, alone, I am charged $.99 a month of my hard earned money. I know that $.99 is not all that much money, but when you are cutting expenses to the bone and can't enjoy a $1 Mall Cop rental from Redbox, that $.99 means a lot. Especially if I drag that out over 5 years. That's nearly $60 of my money going towards giving somebody ELSE a phone. I am all for charity, but I much more prefer willingly giving than having money sneaked out from under me with little fees here and there.




Fraud in the Program
There are dissatisfied "customers" of the program everywhere. Internet forums are full of stories about how the recipients get the phones in the mail and receive the minutes, but then after that never receive any additional minutes. When this happens or their phone breaks, they attempt to call the Indian customer service. One example is of a guy who dropped his phone in some water and called customer service to see what had to be done. They told him to reapply for the program in two weeks. He did so, and got declined. His online account still shows that his account is active. So the money is still coming from the Universal Service Fund (remember that charge on your phone bill?) to pay for phone service that isn't even being used.

Proponents Say
The common statement among those in favor of this program is, "cellular service is a right, not just a privilege". Another one is that people need cellular phones in case they have an emergency.

Opponents Say
Opponents can easily combat the first claim that cellular service is a right because that statement is ridiculous and even those who utter it know that. Secondly, if a person is really just getting the phone for emergency purposes, then they can get an old phone that has no service or minutes attached to it. Every old phone will still connect to 911 as long as the battery has a charge. Those of us that pay into the Universal Service Fund (from earlier) also pay into a 911 fund. My bill shows $1.50 a month...what about yours?

Would I Qualify for This Program?
 I live in Georgia and I earn about $28,000 a year. I have a family of four, so that means that I would qualify for this program. Make special note that I do not participate in this or any other program. Let us say that I got approved for this program on the first of July 2010, I would not have to validate my eligibility for a whole year. That means that if I got a job the next day that pays an astronomical 6 figures, I could still keep the phone and minutes for the next year. And probably even longer because the validation process for each year is based on a form that the recipient mails to the company. (There are random checks and audits, but the IRS does the same and look at how many people don't pay their taxes...cough Senator Rangel cough.)

Remember that if you are paying for a home phone or a cell phone you are paying for this free luxury for others.