Investors Hangout Stock Message Boards Logo
  • Mailbox
  • Favorites
  • Boards
    • The Hangout
    • NASDAQ
    • NYSE
    • OTC Markets
    • All Boards
  • Whats Hot!
    • Recent Activity
    • Most Viewed Boards
    • Most Viewed Posts
    • Most Posted
    • Most Followed
    • Top Boards
    • Newest Boards
    • Newest Members
  • Blog
    • Recent Blog Posts
    • Recently Updated
    • News
    • Stocks
    • Crypto
    • Investing
    • Business
    • Markets
    • Economy
    • Real Estate
    • Personal Finance
  • Market Movers
  • Interactive Charts
  • Login - Join Now FREE!
  1. Home ›
  2. Stock Message Boards ›
  3. User Boards ›
  4. Steelers Politic Talk Message Board

And we are paying for those cell phones! How to G

Message Board Public Reply | Private Reply | Keep | Replies (2)                   Post New Msg
Edit Msg () | Previous | Next


Post# of 1903
Posted On: 09/13/2012 4:56:58 PM
Avatar
Posted By: Lmcat
Re: equijohn #500

And we are paying for those cell phones!


How to Get the Government to Cover Your Cell Phone Bill

SSPL / Getty Images




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).


( MORE: Is Cell Phone ‘Bill Shock’ Going Away? )


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.


( MORE: How Apple’s iPhone and Google’s Android Left Blackberry in the Dust )


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.


Brad Tuttle is a reporter at TIME.  Find him on Twitter at  @bradrtuttle . You can also continue the discussion on TIME ’s  Facebook page and on Twitter at  @TIME .





Read other related stories about this:



  • How an FCC Free Phone Program? Went Rogue Bloomberg Businessweek

  • Free cell phones for the needy drawing both cheers and jeers The Pittsburgh Tribune-Review




Read more:  http://moneyland.time.com/2012/02/08/how-to-g...z26NxUTuiv





(0)
(0)








Investors Hangout

Home

Mailbox

Message Boards

Favorites

Whats Hot

Blog

Settings

Privacy Policy

Terms and Conditions

Disclaimer

Contact Us

Whats Hot

Recent Activity

Most Viewed Boards

Most Viewed Posts

Most Posted Boards

Most Followed

Top Boards

Newest Boards

Newest Members

Investors Hangout Message Boards

Welcome To Investors Hangout

Stock Message Boards

American Stock Exchange (AMEX)

NASDAQ Stock Exchange (NASDAQ)

New York Stock Exchange (NYSE)

Penny Stocks - (OTC)

User Boards

The Hangout

Private

Global Markets

Australian Securities Exchange (ASX)

Euronext Amsterdam (AMS)

Euronext Brussels (BRU)

Euronext Lisbon (LIS)

Euronext Paris (PAR)

Foreign Exchange (FOREX)

Hong Kong Stock Exchange (HKEX)

London Stock Exchange (LSE)

Milan Stock Exchange (MLSE)

New Zealand Exchange (NZX)

Singapore Stock Exchange (SGX)

Toronto Stock Exchange (TSX)

Contact Investors Hangout

Email Us

Follow Investors Hangout

Twitter

YouTube

Facebook

Market Data powered by QuoteMedia. Copyright © 2025. Data delayed 15 minutes unless otherwise indicated (view delay times for all exchanges).
Analyst Ratings & Earnings by Zacks. RT=Real-Time, EOD=End of Day, PD=Previous Day. Terms of Use.

© 2025 Copyright Investors Hangout, LLC All Rights Reserved.

Privacy Policy |Do Not Sell My Information | Terms & Conditions | Disclaimer | Help | Contact Us