Virgin Extends Government's Free Cell Phone Program

Sascha Segan - PC Magazine Sascha Segan - Pc Magazine – Wed Dec 9, 10:02 am ET

Free, government-funded cell phones may be the target of right-wing rage, but they're real, they're out there and they're getting more free minutes.
Virgin Mobile on Wednesday announced Assurance Wireless, a government-funded program to offer Kyocera Jax phones with 200 minutes per month to poor or disabled people in New York, Virginia, North Carolina and Tennessee. That's a big bump up from their major competitor, TracFone's SafeLink Wireless, which only offers around 60 free minutes per month, varying state by state.
Free phones and service are available to low-income families or folks participating in a range of government "welfare" programs, including Medicaid, Food Stamps, and Temporary Assistance for Needy Families.
The free phones aren't a new, Obama-era benefit; they're actually part of a program that started back in 1997 called LifeLine, which followed from the Telecommunications Act of 1996. The program was enhanced in 2005 during the Bush administration, and SafeLink started disbursing free phones in 2008. According to LifeLine's Web page, "similar programs have existed since at least 1985."
The program is funded by the Universal Service Fund, which you see as a surcharge on your phone bill. The USF used to subsidize landline service for low-income and disabled people. Now it's allowed to subsidize wireless service as well. That especially helps folks who move frequently, or are living in motels, bunking with family, or are homeless - in many cases, the most struggling folks in America.
Up until now, most cellular LifeLine service was provided through SafeLink, which operates in nineteen states. SafeLink's service provides fewer minutes than Virgin's, but their phones may have better coverage. Virgin, a subsidiary of Sprint, exclusively uses Sprint's network to make calls. Depending on where you live, TracFone may be able to use multiple networks to provide better coverage.
Other major cell phone companies all participate in LifeLine, but they provide discounted, not free service. Verizon Wireless, AT&T Sprint, Cricket and T-Mobile all offer discounted wireless service as part of the LifeLine program.
- Yahoo News