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.



