Federal Cell Phone Fees Being Used To Subsidize Cell Phone Welfare

And now you know what that “Federal Communication Commission’s Universal Service Fund” fee on your cell phone bill is for. So your no-account, layabout neighbor can have a free cell phone plan.

Safelink Wirless and Tracfone are rolling out a new offer in New York that could mean free cell phones for low-income families. The phones come with 68 minutes of airtime a month, along with voicemail, caller ID, call waiting, and text messaging.
The program is supported by the federal government, but it isn’t exactly tax dollars footing the bill. Instead, many cellular customers are paying for it.
Cell phone companies must contribute to the Federal Communication Commission’s Universal Service Fund. While they’re not required to do so, many carriers pass those contribution costs along to their customers.
2 On Your Side looked at an AT&T bill and the charge for one month was $2.58, which amounts to about $31 a year. Sprint and others also charge the fund to its customers.
Once that money is collected, the federal government subsidizes the Lifeline phones by paying $10 per phone/per month from the fund. Some carriers simply apply the ten dollars as a discount for low-income subscribers, but the Safelink program provides the phone and service completely for free because Tracfone kicks in another $3.50 per month. The combined $13.50 equates to the free 68 minutes of airtime each month.

Someone want to explain to me why subsidizing cell phones for the poor is a pertinent and necessary function of government? Are cell phones necessary for existence? Have we forgotten the near entirety of human history when individuals were able to survive just fine without cell phones?
I should point out that, while I’m a staunch proponent of limited government, I’m not opposed to government aid for people who legitimately need it. I don’t want people who truly cannot help themselves to starve or die from exposure. But how does subsidizing cell phone use for the poor fit into that equation?
Cell phones are a luxury item to be earned by those who provide for themselves. Not a freebie to be subsidized by the taxpayers.

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  • http://Array Dominick

    I am willing to bet, the reason Big Brother wants the poor to have cell phones is to be able to track them. if the Government has control of there phones then its less likely they will need a warrant to be able to track them. with all the modern phones they all have GPS. Conspiracy theory ? maybe.

  • pete

    such bull if they want to give someone somthing give it to someone thats doing good for themselfs and not some one that does not even pay taxes or even have a job. i think its bull that there going to get free cell phones and not even pay a dime. such bull i work my butt off to help pay for someones phone cause they wont get off their ass and find a job. who ever come up with this needs to find a real job,and for the ones that oked this get off the crack please.

  • Chuck

    CK Prahalad, Fortune at the Bottom of the Pyramid: Poor people from India buy cell phones on credit, and they share these phones and it greatly improves their way of life because they are able to better know the market for the goods they cell, as well as network better and find more business opportunities. It is more than a luxury for them.

  • Wing Chun Geologist

    I refuse to allow my parents to pay my cell phone bill. That fifty bucks monthly is bought and paid for by me.

    Good for you Eddie. Not many young guys out there know what it’s like to feel like a man because you stand on your own two feet.

    As to this program.

    It’ll be great for us teachers to contact low income parents…as long as we remember to make our phone calls to parents in the first 5 days of class.

    Anyone so shiftless as to need a welfare cellphone is going to burn through their minutes in the first 5 days of the month. I say tis because in one town where I worked there was a huge spike in pizza delivery and shoe sales at the first of the month, and a lot of people asking for help by the 15th.

  • whatever

    I don’t think anything is wrong with welfare people getting cells phones, hell i work for everything i have but if i could get food stamps, free housing , and free money, and a free cell phone . i would and guess what im a black single female with a child and i don’t get shit from the goverment and i only make 35,000 a year. So who gives a fuck what they do with my taxes .my taxes is used for other stuip shit anyway , why not blow it on helping the poor. hell i feel like i work for nothing anyway !

  • Achmed

    Did this nonsense start under Bush or Obama? Either way its wrong. These folks need to work for what they get. I bet if they had to pick up trash to collect these benefits – they would find a job.

  • Mickey

    My cell phone is a free-be from work so I guess this would be another example of a corporations indirect charity for low-income families. We supply several thousand free phones for employees. Multiply that against the $31. fee you mentioned and that is a considerable amount of ching.

    Don’t tell the rocket scientist dino. He still thinks corporations are greedy.

  • http://forums.kikizo.com/ Eddie_the_Hated

    Because I have a sense of dignity.

    I refuse to allow my parents to pay my cell phone bill. That fifty bucks monthly is bought and paid for by me.

    it actually feels good.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    Actually you need a friend or family member with a phone where prospective employers can leave a message.

  • Rezistik

    If the poor don’t have cell phones how will they be able to call for pizza and meth?

    Collect.

    Look I disagree with the policy as much as you but saying all the poor are fat lazy methheads is foolish. These are rough times and just because someone is in need does not make them delinquents.

    I can almost understand the purpose in this,even if I disagree with the method, in order to have a job you have to have a phone with which to be reached. That is why poverty is such a cycle, once your homeless you will find it near impossible to overcome homelessness without help from somewhere. In order to have a job you need an address and a phone so they can contact you.

    Now I think perhaps a better way to do this would instead of cell phones subsidizing cord phones which are cheaper on average.

    It should also be paid for with taxes not by raising the price of the cell phone bills.

    I’m still on the fence on the issue as a whole. On the one hand a phone isn’t needed to survive…on the other in order to have a job you need to be able to be contacted.

  • http://proof-proofpositive.blogspot.com/ proof_positive

    Phone service is a right! its in the constitution!

    Yeah, but just rotary phones!

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  • dawneyr

    The democrats raise taxes, hyper-control the decisions of others, and call it distributing the wealth. Meanwhile, some businesses raise fees, hyper-control the decisions of others, and call it corporate responsibility while hailing lowered taxes . It’s the same earmark/lobbying game that is redesigned and relabeled to be palatable to each applicable audience.

    I have what is considered “low” income, but I’m not on welfare, so I purchase the economy plan and budget my income to pay for a no bells & whistles plan. I don’t complain and whine to the government that I don’t have texting or call waiting. There is a difference between need and covetousness. The Bible says, “Be content with such things as you have for He Himself has said I will never leave you nor forsake you.” Let me guess, in exchange for the free phones, the companies and government buy the rights to leer into and share your private information, calling habits and keywords? It’s a distasteful lab-rat pellet.

    When a government or business oversteps its purpose, then quality and true choice (aka freedom) go out the window.

    But how does subsidizing cell phone use for the poor fit into that equation?

    It’s called securing the votes. Maybe by 2012 we’ll have cell phone voting and you sure wouldn’t want to bite the hand of the one who pays for your phone bill, would you?

  • jimmypop

    you heartless bastards! Phone service is a right! its in the constitution!

    oh, so is TV…. but you already knew that.

  • http://www.poorschmuck.net/ John D

    If the poor don’t have cell phones how will they be able to call for pizza and meth?

  • Rezistik

    Well this is stupid…

  • http://SayAnythingBlog.com The_Whistler_ofnd

    Why work when you get everything for free?

  • tashag38

    I really really pity you poor judgmental people!! I’ve been a single mother for 20 years….was so filled with much maturity & energy and willing to learn anything that was wished of me. However discriminated towards because I was a teen mom & a product of a troubled(yet secretive) home!! Yes I will take responsibility for looking for love in all the wrong places & for not learning from the first child….had I hated being a single mom & if it had been a serious struggle for me, then maybe I would’ve stopped at the first 2 children. The labor was easy & the love for/from my children was genuine! I’m not a person to make excuses, yet my troubled past has hurt my life more than it has helped it!
    I would love to hear that you all care that, we low income families have a way of getting in touch with our little love ones as much as you & yours would like to stay in contact with your child/children. I also want you all to know that here in DC, everyday is a worry day for me when they all walk out that door to school. Yes my children(with the help from the Government) have everything that they need, just not as much as everyone else and not exactly what they want! I love all six of my children with all my heart, from the 20 year old to the soon to be 10 year old..I’m going to continue to go to school, therapy and church during my improvement of my family & myself. I also will pray that some day:folks will be less judgmental and more encouraging and informative to families like mine, so that soon other adults:parents,family,family friends and/strangers will never prey on the young anymore ever in life!!

    PS. I’ve never done any drugs, I’ll will once/twice a month drink wine/champagne once every 3 to 6 months….I’m saying all this, to say not all of us are druggies/alcoholics. We just had a mental sat back, and with a plethora of proactive positive family/friends(if there’s any), we will rise vigorously & rapidly above this hardship.

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