I searched a bit… it’s only available in six or seven states so you may not have seen the commercials. It’s run by Virgin Mobile.
If you qualify, you get a free cell phone and 200 minutes per month. Basically, if you are on welfare of some sort you qualify.
I also found some blog where a critic of the program claims its an abuse of the Federal Universal Services Fund.
So …where is the money coming from and why only a few states?
Well, that seems to be the blog of a wingnut, whose objection is that giving phones to welfare recipients is communism.
He seems to think the program is paid for by the Federal Universal Services Fund. I don’t know if that is actually the case, but it would seem to fall within their remit.
(I had never heard of any of this before. I just googled.)
From their own FAQ:
Assurance Wireless is brought to you by Virgin Mobile USA and is a Lifeline Assistance program supported by the Universal Service Fund. Lifeline Assistance is only available on one phone line per household. Assurance Wireless is available in limited geographic areas and is subject to the Assurance Wireless Terms of Service.
Assurance Wireless isn’t the only program like that out there. There are other similar ones in other states where Assurance isn’t.
Lots of private companies use public monies to provide services. For instance, in Illinois “earnfare” which is connect with Food Stamps and Grants can be based in public service, private sector companies (Walgreens and Avon are too big ones) as well as even politicans.
The basic premise of “earnfare” is you have to work off your food stamps at minimum wage and you get a $294 check (once per month / per six months for every year).
So in a nutshell you get foodstamps and pay for them by working at Walgreens or Avon or at a Alderman’s office, etc etc.
This is just another company that uses public money to promote a private business. And it’s not so different from the above. There are lots and lots of other similar schemes to help people who don’t earn a lot
My name is Jack and I am an employee with Assurance Wireless. Assurance Wireless is supported by the Lifeline Assistance program, part of the Low Income Program of the federal Universal Service Fund (USF), which is administered by the Universal Service Administrative Company (USAC), and designed to ensure that quality telecommunications services are available to low-income customers at reasonable and affordable rates. Studies, such as one done by the ORC and MIT, have found that cell phones are extremely important to American’s for personal safety and a huge boon to an individual’s economic productivity and earning power. Having access to a cell phone in order to receive a “call back” is essential, especially with so many people who are unexpectedly out of work.
I just found out that my brother’s girlfriend qualified for one of these Assurance phones and she gave it to her nine year old kid so she doesn’t feel left out of not having a cell phone like her friends do. Now my neice wants one and her mother also on welfare will be applying for a free cell phone for her as well. It’s needless to say they are not being taught to earn crap just like their parents. There is no motivation for these people who don’t work for a living now they get free cell phones too, Wow this is some bull!
[Moderator Note]
yshejm, political commentary of this kind is not appropriate for GQ. If you want to discuss this aspect, please start a thread in Great Debates or the Pit. No warning issued.
Colibri
General Questions Moderator
Try again… what is political about that? It may not be appropriate for GQ but you’d do us all a favor by being more specific.
Since starting this thread I’ve also seen ads on TV for free wired phones.
I heard on the radio a couple of days ago a comment that the NBC Comcast deal included concessions for low cost ($10) internet to certain customers and something about Ipads even. Sorry that I don’t have any additional details.