America’s economy is not in good shape. It is in the grip of recession. Many industries have closed down or shifted to other countries. This has resulted in large number of unemployment. The number of poor families has increased and more and more people are in need of government assistance. The unemployed persons need a cell phone at subsidized cost so that they may contact their future employers. Many such persons have enrolled themselves for Lifeline programs. They are using free government phones to search new jobs

The program was conceived by Reagan

This free government phone program for poor families was originally thought of under the President Reagan’s administration to provide the poor Americans some way to get in touch with the schools of their children, to contact their prospective employers and get timely help from health care providers.  But it was Clinton who started this free cell phones program for the poor families and brought the Telecommunication Act, 1996. The program continued under Bush and Obama administration also. This scheme in the present form is implemented through two programs:  Lifeline Assistance and Lifeline Link-Up.

Lifeline Link-Up bears the start up expenditure of providing the phones while the Lifeline Assistance gives subsidiaries in the monthly telephone bills. The eligibility conditions for qualification for this program have also not been formed by Obama administration. They are in effect since 1996. To be eligible for the program an applicant must be below 135 to 150 percent below the Federal Poverty Guidelines depending on the states they live in. Persons participating in other public assistance programs like food stamps. energy assistance, public housing and medical aid are also eligible for this program.

Many government companies run this program

Though many government approved companies are offering Lifeline services but three main companies providing this program are Safelink, Assurance  and Reachout Wireless. Assurance Wireless is most popular among the poor unemployment youths because of its better services. With an Assurance Wireless in their hands they get power to contact their future employers, government agencies for various unemployment benefits. Employers may also contact the candidates fast and complete paper formalities without delay.

Lifeline phone is boon for unemployed

The sentiments of an average unemployment American with any free government service are linked to the benefits that service provides to him. This can best be understood with the help of a story that goes thus:

There was a man Mr. Z who was considered to be very rich and sentimental. This man believed in every word of a particular astrologer because he struck the jackpot every time he made a prediction for Mr. Z. So, this man rewarded the astrologer who was really poor with a new model of Audi car. Audi requires high maintenance. But since the astrologer could not maintain it he went to the market and sold the Audi and took the cash. The idea behind the story is that any free gift or service should be useful and affordable.

A free Lifeline Assurance Wireless phone is proving to be a boon for the unemployed youths of the country and they are using this affordable service for search new employment opportunities for them

Lifeline program for providing government phones to the poor at the subsidized cost has come as a great help to the needy families in the present most difficult time in US history. But the program has come under criticism from the Republicans who feel that the program is being used for getting votes for Obama. The criticism of this program has brought the Republicans under the attack of the poor who feel that Republicans want to take away their government phones.

Clinton started the program

This program was originally given shape under the administration of President Reagan with the objective to provide the poor Americans some way to get in touch with the schools of their children, to contact their prospective employers and get emergent medical help.  But it was Clinton who started offering free cell phones to the poor families and in 1996 brought the Telecommunication Act. Later on the program continued under Bush and Obama administration also.

Program is criticized by the Republicans

Under Obama administration the size of this program has increased manifold In 2011, there were 3.8 million subscribers to the program. The cost of Lifeline program also doubled from $722million in 2008 to $1.6billion in 2011.  Due to increase in expenditure this free cell phone program has been criticized by the Republicans. They call it as a wasteful expenditure and want to do away with it. The controversy further started after a video went viral. In the video, an Obama supporter was quoted as saying to a reporter about her “Obama phone” at a rally held in Ohio.  This video brought the incorrect word ‘Obama Phone’ into public eye and sparked a fresh debate on the subject.

Though the increase in the number of beneficiaries is primarily due to recession in the country but the Republicans call it a waste of taxpayers’ money. The free government phones are provided by the government that the poor people can make calls to their prospective employers, health care providers and teachers of their children etc. But the program has taken a political turn. Obama’s opponents claim that the profits earned by the big telecom companies delivering this program are being diverted for the election campaign of Obama.

For this they cite the example of Mr. Sim whose profits have swollen under Obama’s regime. Though Mr. Sim himself is a foreign national but some of his close associates have very good links with Obama.  The Movil America company of Mr. Sim is the owner of Simple Mobile and TracPhone in America. Simple Mobile is the Lifeline phones provider company while the TracPhone manufactures cell phone handsets. The direct profits of the company go to the TracPhone owner Frederick’F.J.’ Pollak who is one of the biggest donor in Obama’s election campaign.

Poor Americans feel that Republicans will withdraw the program

But this political controversy is not in the interest of the poor Americans who are in dire of government assistance in this critical hour of American economy. The poor Americans who have lost their jobs due to present recession are looking for more assistance from the government and are not ready to sacrifice the present benefits. Therefore an average poor American cannot support the Republic point of view and feel that if the Republicans have their say they will take away his government cell phone.

US administration has a scheme called Lifeline under which one cell phone per family is given to the poor and needy families.  To be eligible for the subsidized phone under the program an applicant must be 135 to 150 percent below the Federal Poverty Guidelines. Persons availing other public assistance programs are also eligible to participate in this program. Many fingers are being pointed towards this program and many people feel that the poor do not deserve thee free phones.

Poor people deserve free government phones

The first point is whether only an unemployed person should be considered poor. There are many people in US who are employed but do not get enough wages to meet their ends. Their employers do not provide them the facilities for medical treatments etc. Such people need assistance from the government. Due to the recession in US many factories have been shifted to other countries. This has created huge employment problem in the country as people working in these factories do not have the skills to do other jobs. Such people also deserve free government phones which can also be a means for them to search for another employment.

There is another set of persons who are away from employment for a long time. They are asked for their Social Security Number top ascertain their credit standing. If you are poor or have been facing financial difficulties due to unemployment you may be excluded from future opportunities even if you are qualified. Such persons who do not have good credit ratings due to financial problems also deserve a free government phone.

Many people feel that they are not responsible for the problems of other people. If every person begins to think in this way then the society cannot survive. Society is the collective responsibility of every person. In every difficult time of history people have helped each other to survive. There was a hard time when even Church came forward to help the needy and poor. So, now when the US is passing through a difficult phase every US citizen should come forward to help each other. The efforts of the government to provide assistance to the poor and needy needs appreciation and everyone should think that the poor also deserve free government phones, medical treatment etc.

Roosevelt also initiated such programs

In 1935, during the great depression when more than 25 percent working people were unemployed President Roosevelt also started similar programs of assistance to the poor. One such program was unemployment compensation while the other was Aid to Dependent Children.

There is no alternative

So, even if you do not feel good for the assistance provided to the poor you do not any alternative. There are no workhouses in US at present where these poor people can be sent and they may be away from your eyes. You are blessed if you are not in need now but who knows what will happen next year. You may also require government assistance. Poor also have the right to survive and so deserve government assistance including a free government phone.

The real controversy about the free cell phone in US is that it is termed as Obama Phone. Some people say that it is a scam and the free cell phone program is being used to get votes for Obama.

Obama charged with using free cell program for getting votes

The program was conceived during Reagan administration and was instituted under Clinton with the objective to provide cell phones to the eligible poor families. The three major service providing companies for the program are: Assurance, Safelink and Reachout Wireless.

Obama refutes the allegations

Obama and his administration dispute these allegations. They argue that the scheme has not been initiated by Obama. Further, Obama has not also made any changes in the eligibility conditions Therefore, they say, the charges are baseless.

Scams and frauds unearthed in Lifeline program

Recently a website freegovernmentcellphones.net has reported that thousands of people have been caught for defrauding the government misusing the provisions of the scheme.  FCC has started investigating the fraud and a crackdown on the fraud may be expected soon.

Lifeline program has grown very rapidly in recent years because of the growing recession in the US economy. So all the safeguards intended to protect the program from frauds have failed.

Though the program is intended to provide one cell phone each to the poor families who are below 135 to 150 percent below the Federal Poverty Line but it has been subjected to lot of abuse and frauds. Many scams have come to light where people have procured multiple cell phones at subsidized costs from different companies and were selling them through websites. Clearly, they have learnt how to take advantage of the welfare program like this. The Federal Communication Commission has so far found that about 0.70 million people in 12 states have received multiple phones at subsidized costs.

Under the Lifeline free cell phone program a family is entitled for only one phone, whether cell or landline. While applying for the subsidized phone the applicant has to confirm that he does not already have a Lifeline phone. So, if anyone has procured two phones, he has committed a crime. Let us investigate, how this crime is committed and how the companies have become a part of this big scam?

Service providers are the part of scams

In most of the states the cell phone providing companies are also responsible for overseeing the program. These companies get $ 10 per month for each person they have provided the phone. So, the more customers they add increases their profit. The companies flout the rules to earn more and more profits. The Government Accountability Office has till now audited only 5 percent of the Lifeline companies but the audit results are shocking. 76 percent companies have been found involved in the scam.

Federal Communication Commission considering many options to stop frauds

In view of the growing frauds and scams Federal Communication Commission is now considering various options to control this menace. Some of the suggestions are:

• Disconnection of services if a telephone is not used for 60 days
• Creating a national database of users so that it becomes easier for companies to verify eligibility.
• Banning the guilty consumers from future participation in the program

These efforts are to be appreciated. This program which offers valuable support to millions of needy families should not suffer due to some greedy people.