kalikshama
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My brother, who is disabled, just signed up for SafeLink:
http://en.wikipedia.org/wiki/TracFone_Wireless#SafeLink
SafeLink Wireless provides a free cell phone and a limited number of voice minutes each month for low-income-eligible families (one per family) who do not use Lifeline services offered by any other phone or wireless company. It is funded through the Universal Service Fund that almost every US taxpayer contributes to via their existing land-line and wireless service provider, but is only operational in a limited number of states.[4][5] It is similar to the Lifeline and LinkUp government subsidized service for home telephones.[6] Applications for service may be done via their web page, or by having them fax or mail an application form. No choice of phone handset is provided by the application process. Additional minutes over the free monthly benefit may be purchased. As of May 2011, Safelink Wireless had almost 4,000,000 subscribers,[7] the largest Lifeline cell phone provider in the United States.
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From your link,
Jose Fuentes, TracFone’s director of government relations wouldn’t say how many people in the state have signed up or how it can make a profit off the $10 per household federal subsidy it receives to provide the Lifeline service.
I imagine TracFone makes money by selling extra minutes.
See also:
http://en.wikipedia.org/wiki/Universal_Service_Fund
...The Communications Act of 1934 first established the concept of making affordable basic telephone service available to everyone everywhere within a nation, state, or other governmental jurisdiction. This concept led to the formation of a fund known as the Universal Service Fund (USF), which was finally codified in the Telecommunications Act of 1996. In some cases, the concept has been widened to include other telecommunications-information services, mainly Internet access.[12]
Prior to the Telecommunications Act of 1996, the Universal Service Fund (USF) operated as a mechanism by which interstate long distance carriers were assessed to subsidize telephone service to low-income households and high-cost areas in order to ensure that all the people in the United States have access to rapid, efficient, nationwide communications service with sufficient facilities at realistic charges.[13]
The Telecommunications Act of 1996 expanded the traditional definition of universal service - affordable, nationwide telephone service – to include other services, such as rural health care providers and eligible schools and libraries.
The FCC was established by the Communications Act of 1934 and is charged with regulating interstate and international communications by radio, television, wire, satellite and cable. Today the FCC's jurisdiction covers the 50 states, the District of Columbia, and U.S. possessions.[14]
Programs offered
The Universal Service Fund (USF) is one fund with four programs.
The four programs are:
High Cost - This support ensures that consumers in all regions of the nation have access to and pay rates for telecommunications services that are reasonably comparable to those in urban areas. The High Cost Program is by far the largest and most complex of the four programs. The net goal of the program is to keep telephone service affordable for customers in areas where, absent the subsidy, telephone service would be dramatically more expensive than the national average. The complex system of fees, surcharges and subsidies supports telephone companies in rural and remote areas.
Low Income - This support program provides discounts that make basic, local telephone service affordable for millions of low-income consumers. The Low-Income section of the Universal Service Fund is broken down into two programs. One program is known as Link-Up America and assists consumers with the installation costs of phone service. Link-Up program pays up to $30 of the telephone service installation fees, and provides up to $200 of one year, interest-free loans for any additional installation costs. The other is the Lifeline program. Lifeline Assistance provides discounts on basic monthly service at the primary residence for qualified telephone subscribers. These discounts can be up to $10.00 per month, depending on the location. Along with these programs subscribers living on tribal lands may qualify for additional discounts. Residents of Native American Indian and Alaska Native tribal communities may qualify for enhanced Lifeline assistance (up to an additional $25.00) and expanded Link-Up support (up to an additional $70.00). Eligibility may vary from state to state. States with their own programs may have their own eligibility guidelines. For states that rely solely on the federal Lifeline and Link-Up program eligibility criteria, subscribers must either have an income that is at or below 135% of the federal Poverty Guidelines, or participate in other assistance programs. On January 31, 2012, the Federal Communications Commission approved an order changing parts of the Universal Service Fund (USF) known as the "Lifeline Program" to reduce fraud and abuse.[15][16]
Rural Health Care - This program provides subsidies for “tele-health and tele-medicine,” typically a combination of video-conferencing infrastructure and high speed Internet access, to enable doctors and patients in rural hospitals to access specialists in distant cities at affordable rates.
Schools & Libraries - This program, also known as E-Rate, provides subsidies for Internet access, telecommunications services, internal infrastructure and basic maintenance of internal connections to schools and libraries. The subsidies pay a percentage of costs based on need, with rural and low-income schools receiving the greatest subsidy. This support goes to service providers that provide discounts from 20% to 90% based on the level of poverty and the urban/rural status of the population served. Eligible schools, school districts, and libraries may apply individually or as part of a consortium, and must provide the hardware and software elements that are necessary to utilize the connectivity.
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