Lifeline Program Providing Subsidized Cell Phones for the Poor
Even for the homeless and destitute, communication increasingly depends upon technology, leaving those without access out of the loop. And while Google has helped get the homeless set up with voice mail (using its former Grand Central service), and some cities (like New York and San Francisco) are getting the homeless connected to the Internet, one modern convenience has seemed out of reach: the cell phone.
But a decades-old federal program called Lifeline, which subsidizes phone service for the poorest in the nation, has recently been expanded to offer limited, pre-paid cell phone service, the New York Time reports. Companies like Sprint, AT&T, and Tracfone are getting in on the program, and some insiders are referring to the grossly underprivileged as the providers' only untapped U.S. market. "And the race is on to get them," Nielsen analyst Roger Entner told the New York Times.
The program, which costs the government about $10 per month, per person, offers qualifying individuals a free cell phone and about 68 minutes of service. Since November, the number of people taking advantage of the service has doubled to 1.4 million, reflecting the growing number of people eligible for such assistance due to the downturn of the economy.
While Lifeline is available nationwide, individual states typically exercise some control over the program's implementation. At present, one provider has only found success offering its subsidized phones in 16 states. Tracfone's subsidized service, called SafeLink, can be used in New York, Tennessee, North Carolina, and Pennsylvania, among others. California's public utilities commission, for instance, has not yet decided whether or not to offer cell phones in conjunction with its Lifeline program, and is preparing to debate the matter this week.
Cell phones can clearly give a leg up to those who have fallen on hard times; unlike a landline phone, a cell phone can be used in an emergency outside the home, and can make the unemployed much more accessible to a potential employer. With 90-percent of the population having at least one cell phone, subsidizing the cost of the needy's service isn't even about leveling the playing field; it's just about getting those folks on the field to begin with. [From: New York Times]
But a decades-old federal program called Lifeline, which subsidizes phone service for the poorest in the nation, has recently been expanded to offer limited, pre-paid cell phone service, the New York Time reports. Companies like Sprint, AT&T, and Tracfone are getting in on the program, and some insiders are referring to the grossly underprivileged as the providers' only untapped U.S. market. "And the race is on to get them," Nielsen analyst Roger Entner told the New York Times.
The program, which costs the government about $10 per month, per person, offers qualifying individuals a free cell phone and about 68 minutes of service. Since November, the number of people taking advantage of the service has doubled to 1.4 million, reflecting the growing number of people eligible for such assistance due to the downturn of the economy.
While Lifeline is available nationwide, individual states typically exercise some control over the program's implementation. At present, one provider has only found success offering its subsidized phones in 16 states. Tracfone's subsidized service, called SafeLink, can be used in New York, Tennessee, North Carolina, and Pennsylvania, among others. California's public utilities commission, for instance, has not yet decided whether or not to offer cell phones in conjunction with its Lifeline program, and is preparing to debate the matter this week.
Cell phones can clearly give a leg up to those who have fallen on hard times; unlike a landline phone, a cell phone can be used in an emergency outside the home, and can make the unemployed much more accessible to a potential employer. With 90-percent of the population having at least one cell phone, subsidizing the cost of the needy's service isn't even about leveling the playing field; it's just about getting those folks on the field to begin with. [From: New York Times]
Reader Comments (Page 1 of 1)
MyKisa said 12:40PM on 6-20-2009
....subsidized bank accounts hould be coming soon
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FORKUU said 1:40PM on 6-20-2009
MY CLIENTS HAVE THIS SERVICE. THEY ARE GIVEN THE CHEAPEST CELL PHONES THAT LOOK LIKE THEY ARE ABOUT TEN YEARS OLD
MOST DONT WORK AND 68 MIN DOESNOTHING FOR THEM.
THEY HAVE TO BUY EXTRA MIN. TRACPHONE IS CONSTANTLY BOMBARDING THEM TO BUY EXTRA MIN . SOME OF MY CLIENTS HAVE PROBLEMS AND HAVE ACTUALLY SPENT BILL MONEY BUYING
EXTRA MIN PUTTING THEIR ULITITY SERVICE IN DANGER.
THIS SERVICE IS NOT ABOUT HELPING PEOPLE ITS ABOUT TRYING TO GET THE POOR TO SPEND THE SMALL AMOUNT OF MONEY THEY HAVE ON GETTING EXTRA TIME.
SHAME ON THESE CELL PHONE COMPANIES!
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OMG said 3:28PM on 7-05-2009
YOU ARE OBVIOUSLY MENTALLY DERANGED FOR FAILING TO SEE IT'S NOT THE CELL PHONE COMPANIES WHO HAVE RESPONSIBILITY ISSUES, IT'S 'YOUR CLIENTS' WHO ARE COMPLETELY INCAPABLE OF TAKING CARE OF THEMSELVES AND ARE TOO IMMATURE AND UNABLE TO HANDLE THEIR OWN LIVES!
'YOUR CLIENTS' SHOULDN'T BE ALLOWED THE OPPORTUNITY TO RECEIVE A FREE HANDOUT THEY TRULY DON'T APPRECIATE OR DESERVE!
YOUR NEGATIVITY FITS RIGHT IN WITH 'YOUR CLIENT'S' MENTAL INABILITY TO COPE WITH REALITY!
Jenny Milingtow said 4:43PM on 6-20-2009
I think it's great, I read the report by N. Sullivan that shows how owning a cell phone can improve your earning potential and that blue collar workers derive far more benefit than white collar workers and I can understand that when I think about a handy man who is always out working at someone else s house, if he didn't have a cell phone how would he get more work? I am all for a program that will help the poor to find there feet.
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Jsams4131 said 3:52AM on 6-21-2009
are you kidding me? Cell Phones are not neccesary for those with money, so why should it be neccesry for those without? For the very few people left with a job and actually pays their bills because they don't overspend like a moron....I feel bad for you because you will soon be paying for everything that will become "subsidized"
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Virginfan said 9:43PM on 7-20-2009
I also heard that Virgin Mobile, one of the hippest cell providers around is even getting into this mix! I can't believe they'd get themselves associated with this low-level program. Yeah! sorry for the poor, but VIRGIN MOBILE! I've been w/ them for a long time but am starting to rethink just how hip they are. Might as well go with another prepaid provider or even AT&T and get myself an Iphone!
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keishmak said 7:38PM on 8-14-2009
I feel so sad for you that you would stop using a cell phone company because they are participating in this program. Everything in America is based on money. Do you actually think their running this program to benefit people with low income or put more money in their pockets? Always remember on any given sunday you could loose everything you have and be apart of the low income community. God giveth and he taketh away. Open your mind and heart I know your more beautiful than that comment on the inside.
keishmak said 7:42PM on 8-14-2009
you need jesus. Your comment is disgusting. The lord giveth and he taketh away. I hope you never those what material riches you have becuase you would not make it in the real world. Grow up. Im sure you have people telling you that every day.
Reply