Factcheck: "Obamaphones"

Lunchboxxy · Oct 12, 2012

Since it the need has apparently arisen to drag the old and inaccurate "Obamaphone" nonsense out, I thought it was time to revisit the facts about these mythical Obamaphones.

Q: Has the Obama administration started a program to use "taxpayer money" to give free cell phones to welfare recipients?

A: No. Low-income households have been eligible for discounted telephone service for more than a decade. But the program is funded by telecom companies, not by taxes, and the president has nothing to do with it.

FULL QUESTION

Is this e-mail true?

I had a former employee call me earlier today inquiring about a job, and at the end of the conversation he gave me his phone number. I asked the former employee if this was a new cell phone number and he told me yes this was his "Obama phone."

⬐ Click to expand/collapse the full text ⬏

FULL ANSWER

Welfare recipients, and others, can receive a free cell phone, but the program is not funded by the government or taxpayer money, as the e-mail alleges. And its hardly new.

How It Works

SafeLink Wireless, the program mentioned in the e-mail, does indeed offer a cell phone, about one hours worth of calling time per month, and other wireless services like voice mail to eligible low-income households. Applicants have to apply and prove that they are either receiving certain types of government benefits, such as Medicaid, or have household incomes at or below 135 percent of the poverty line. Using 2009 poverty guidelines, thats $14,620 for an individual and a little under $30,000 for a family of four, with slightly higher amounts for Alaska and Hawaii.

SafeLink is run by a subsidiary of América Móvil, the worlds fourth largest wireless company in terms of subscribers, but it is not paid for directly by the company. Nor is it paid for with "tax payer money," as the e-mail claims. Rather, it is funded through the Universal Service Fund, which is administered by the Universal Service Administrative Company, an independent, not-for-profit corporation set up by the Federal Communications Commission. The USF is sustained by contributions from telecommunications companies such as "long distance companies, local telephone companies, wireless telephone companies, paging companies, and payphone providers." The companies often charge customers to fund their contributions in the form of a universal service fee you might see on your monthly phone bill. The fund is then parceled out to companies, such as América Móvil, that create programs, such as SafeLink, to provide telecommunications service to rural areas and low-income households.

History

The SafeLink program has actually been offering cell phones to low-income households in some states since 2008, not beginning "earlier this year," as the e-mail claims. But the program is rooted in a deeper history.

When phone lines were first laid out in the late 19th century, they were not always inter-operable. That is to say the phone service created by one company to serve one town may not have been compatible with the phone service of another company serving a different town nearby. The telecom companies themselves saw the folly in this arrangement, and so in 1913, AT&T committed itself to resolving interconnection problems as part of the "Kingsbury Commitment."

That common goal of universal service became a goal of universal access to service when Congress passed The Telecommunications Act of 1934. The act created the FCC and also included in its preamble a promise "to make available, so far as possible, to all the people of the United States, a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges. There was a fear, expressed by telecom companies themselves, that market forces alone might encourage companies to pass on providing service to hard-to-reach places. This would both hurt the people who wouldnt have service as well as existing customers who wouldnt be able to reach them. So the new FCC was tasked with promoting this principle of "universal service."

This informal practice was codified when the Universal Service Administrative Company (USAC) was created as part of the 1996 Telecommunications Act to "ensure all Americans, including low-income consumers and those who live in rural, insular, high cost areas, shall have affordable service and [to] help to connect eligible schools, libraries, and rural health care providers to the global telecommunications network." The USAC includes four programs to serve rural areas, high cost areas, rural health care providers, and schools and libraries. Since 1997, USAC has provided discounted land line service to low-income individuals. (A more limited program to offer assistance to low-income individuals was created a decade earlier; the telecommunications act expanded and formalized it.) According to Eric Iversen, USAC director of external relations, the Universal Service Fund more recently began funding programs that provide wireless service, such as the pre-paid cellular SafeLink program mentioned in the chain e-mail.

The president has no direct impact on the program, and one could hardly call these devices "Obama Phones," as the e-mail author does. This specific program, SafeLink, started under President George Bush, with grants from an independent company created under President Bill Clinton, which was a legacy of an act passed under President Franklin Roosevelt, which was influenced by an agreement reached between telecommunications companies and the administration of President Woodrow Wilson.

Wilson Phones, anyone?
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http://www.factcheck.org/2009/10/the-obama-phone/

paco · Oct 12, 2012

Umm...yeah!

http://obamaphone.net/

Not The Guardian · Oct 12, 2012

paco said: ↑

Umm...yeah!

http://obamaphone.net/
Click to expand...

Ummm....yeah! From your link:

The term the Obama Phone has been all around since the day Barack Obama became the president of the United States of America. Many people think that Obama is giving free cellphones to the poor in order to redistribute the wealth of rich people. Since then two groups are mudslinging at each other.

Its true that government provides free cellphones to the poor and disabled people. But the Obama part is not true as Obama didnt initiate this program. Its on the run since the administration of Reagan. This program has two parts: one is called the Link-Up which provided free landline connection to the poor and the other is called the Lifeline which provides waiver on telephone bills. These two programs are simply called Lifeline when lumped together.

This service is provided by government approved companies. The three major companies are Safelink Wireless, Assurance Wireless and ReachOut Wireless.
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What a hilarious way to make money off republican stooges!

Think for myself · Oct 12, 2012

paco said: ↑

Umm...yeah!

http://obamaphone.net/
Click to expand...

From your link.

But the Obama part is not true as Obama didn’t initiate this program. It’s on the run since the administration of Reagan. This program has two parts: one is called the ‘Link-Up’ which provided free landline connection to the poor and the other is called the ‘Lifeline’ which provides waiver on telephone bills. These two programs are simply called ‘Lifeline’ when lumped together.

http://obamaphone.net/what-is-the-obama-phone

AceFrehley · Oct 12, 2012

Tell that to Obamaphone lady and the other parasites. It's old news to those of us with an IQ above room temperature.

Think for myself · Oct 12, 2012

Not The Guardian said: ↑

Ummm....yeah! From your link:

What a hilarious way to make money off republican stooges!
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(*)(*)(*)(*) it all to hell! You beat me by 2 scant minutes!

Max Frost · Oct 12, 2012

Are you taking away one of the Klans talking points? Good JOB!!!!!

slashbeast · Oct 12, 2012

It's an Obamaphone. Just ask Obama voters:

[video=youtube;tpAOwJvTOio]https://www.youtube.com/watch?v=tpAOwJvTOio[/video]

Lunchboxxy · Oct 12, 2012

slashbeast said: ↑

It's an Obamaphone. Just ask Obama voters:

[video=youtube;tpAOwJvTOio]https://www.youtube.com/watch?v=tpAOwJvTOio[/video]
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OMG some random lady called it an Obamaphone! That MUST mean that's what it is!

Lunchboxxy · Oct 12, 2012

More info on this topic, it appears that under Obama, reforms to the program have actually reduced fraud and waste. To the tune of at least $43 million this year alone.

Washington, D.C. – Comprehensive reforms of the Lifeline program have saved nearly $43 million so far in 2012 and are on track to save at least $200 million this year, according to a progress report issued by the Federal Communications Commission today.
Since 1985, Lifeline has connected low-income Americans to jobs and opportunities, family and emergency services by helping make phone service affordable. But waste, fraud and abuse in the program were threatening its future.

In January, the FCC completely overhauled and reformed Lifeline for today’s communications marketplace. These reforms included eliminating unnecessary subsidies, cutting off duplicative subscriptions, and requiring better proof of eligibility. Major savings so far this year include:

 $26 million from elimination of most of the “Link Up” program. Link Up provided subsidies for initial phone connections. But technology has largely eliminated the cost of initializing service. Instead, some carriers exploited Link Up as a bounty rewarding new subscriptions. Monthly savings from the elimination of Link Up of over $13 million were first realized in June and July, totaling $26 million.

 $16.5 million from eliminating duplicative subscriptions. Building on efforts that began last year, the FCC has continued to scour subscriber rolls and has de-enrolled duplicative subscriptions in 16 states, producing substantial savings in 2012. The process continues and will generate further savings this year and beyond.

 $250,000 from phasing out “toll limitation” service. This program – intended originally to protect consumers from disconnection due to non-payment of toll charges – was found to be unnecessary and subject to abuse. It will be completely eliminated in 2014.

Additional changes – tougher proof-of-eligibility requirements, certification and recertification of continued eligibility – became effective June 1 and are expected to reap additional savings this year.
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Anikdote · Oct 12, 2012

Lunchboxxy said: ↑

OMG some random lady called it an Obamaphone! That MUST mean that's what it is!
Click to expand...

wtf. i get all meh informations from utube. its on the interwebs, it must be true.

kk8 · Oct 12, 2012

Think for myself said: ↑

From your link.

But the Obama part is not true as Obama didnt initiate this program. Its on the run since the administration of Reagan. This program has two parts: one is called the Link-Up which provided free landline connection to the poor and the other is called the Lifeline which provides waiver on telephone bills. These two programs are simply called Lifeline when lumped together.

http://obamaphone.net/what-is-the-obama-phone
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YOU DO UNDERSTAND THAT THE ORIGINAL INTENT WAS FOR PEOPLE TO RECEIVE HELP WITH "LAND LINE" PHONES....TO BE ABLE TO CALL LOCAL 911!

CUT THE BS! If you cannot come to terms with the fact that literally EVERY entitlement has gotten OUT OF CONTROL UNDER OBAMA, then there is absolutely ZERO help for you....you are already gone, and will probably rot there till the end of your days!

Not The Guardian · Oct 12, 2012

Anikdote said: ↑

wtf. i get all meh informations from utube. its on the interwebs, it must be true.
Click to expand...

And don't fergit wikidpidia and fox.

kk8 · Oct 12, 2012

Lunchboxxy said: ↑

OMG some random lady called it an Obamaphone! That MUST mean that's what it is!
Click to expand...

ARE YOU SERIOUS???? RANDOM????! God I really can't stand you people anymore....deny deny deny deny....you know that's what the prez is hoping for, right? A bunch of BRAIN DEAD ZOMBIE'S THAT REPEAT EVERYTHING THE LIBERAL IDIOTS SAY!

[video=youtube;aTYiKjFnMos]http://www.youtube.com/watch?feature=player_embedded&v=aTYiKjFnMos#![/video]

This is from the FCC...guide to help you understand your bill!

Guide

Understanding Your Telephone Bill

Universal Service Charges

The Universal Service Fund (USF) provides support to promote access to telecommunications services at reasonable rates for those living in rural and high-cost areas, income-eligible consumers, rural health care facilities, and schools and libraries.
All telecommunications service providers and certain other providers of telecommunications must contribute to the federal USF based on a percentage of their interstate and international end-user telecommunications revenues. These companies include wireline phone companies, wireless phone companies, paging service companies, and certain Voice over Internet Protocol (VoIP) providers.
Some consumers may notice a Universal Service line item on their telephone bills. This line item appears when a company chooses to recover its USF contributions directly from its customers by billing them this charge. The FCC does not require this charge to be passed on to customers. Each company makes a business decision about whether and how to assess charges to recover its Universal Service costs. These charges usually appear as a percentage of the consumers phone bill. Companies that choose to collect Universal Service fees from their customers cannot collect an amount that exceeds their contribution to the USF. They also cannot collect any fees from a Lifeline program participant.

http://www.fcc.gov/guides/understanding-your-telephone-bill

AceFrehley · Oct 12, 2012

Not The Guardian said: ↑

And don't fergit wikidpidia and fox.
Click to expand...

And don't forget, you're supposed to have me thrown in jail.

Lunchboxxy · Oct 12, 2012

kk8 said: ↑

ARE YOU SERIOUS???? RANDOM????! God I really can't stand you people anymore....deny deny deny deny....you know that's what the prez is hoping for, right? A bunch of BRAIN DEAD ZOMBIE'S THAT REPEAT EVERYTHING THE LIBERAL IDIOTS SAY!

[video=youtube;aTYiKjFnMos]http://www.youtube.com/watch?feature=player_embedded&v=aTYiKjFnMos#![/video]

This is from the FCC...guide to help you understand your bill!

Guide

Understanding Your Telephone Bill

Universal Service Charges

The Universal Service Fund (USF) provides support to promote access to telecommunications services at reasonable rates for those living in rural and high-cost areas, income-eligible consumers, rural health care facilities, and schools and libraries.
All telecommunications service providers and certain other providers of telecommunications must contribute to the federal USF based on a percentage of their interstate and international end-user telecommunications revenues. These companies include wireline phone companies, wireless phone companies, paging service companies, and certain Voice over Internet Protocol (VoIP) providers.
Some consumers may notice a “Universal Service” line item on their telephone bills. This line item appears when a company chooses to recover its USF contributions directly from its customers by billing them this charge. The FCC does not require this charge to be passed on to customers. Each company makes a business decision about whether and how to assess charges to recover its Universal Service costs. These charges usually appear as a percentage of the consumer’s phone bill. Companies that choose to collect Universal Service fees from their customers cannot collect an amount that exceeds their contribution to the USF. They also cannot collect any fees from a Lifeline program participant.

http://www.fcc.gov/guides/understanding-your-telephone-bill
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Oh boy! another random lady! More proof! The phones that woman has aren't even safelink phones....

Radio Refugee · Oct 12, 2012

Like every give away to the looter and moocher class, this is just another one Obama has intentionally expanded. More looters, more Obama voters.

Welcome to America's biggest loser cohort.

Rapunzel · Oct 12, 2012

Obama Phone Makes Worlds Richest Man Richer
Read more at http://www.inquisitr.com/361922/obama-phone-makes-worlds-richest-man-richer/#ctVFR8grxVyHWx3U.99

FNC also reports that Pollak and his wife are big Obama campaign donors and bundlers who have also hosted fundraisers for the president and contributed to other Democrats.

Reward our friends and punish our enemies.

Do you think that there is a lack of political transparency when it comes to the Obama phone program?

Lunchboxxy · Oct 12, 2012

Rapunzel said: ↑

‘Obama Phone’ Makes World’s Richest Man Richer
Read more at http://www.inquisitr.com/361922/obama-phone-makes-worlds-richest-man-richer/#ctVFR8grxVyHWx3U.99

FNC also reports that Pollak and his wife are big Obama campaign donors and bundlers who have also hosted fundraisers for the president and contributed to other Democrats.

Reward our friends and punish our enemies.

Do you think that there is a lack of political transparency when it comes to the Obama phone program?
Click to expand...

Yeah, that article is bull(*)(*)(*)(*). The first clue was from a website called "The Inquisitr".

The Lifeline program reportedly cost the taxpayers about $1.6 billion in 2011.
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Zero taxpayer dollars go to the lifeline program. I also don't know how the man would make $10 per phone when the lifeline program doesn't subsidize the cost of the cell phones...

MIAMI, Oct. 11, 2012 -- MIAMI, Oct. 11, 2012 /PRNewswire/ -- TracFone Wireless, Inc., issued the following fact sheet today on behalf of its SAFELINK WIRELESS® service for Income-eligible households under the federal Lifeline program:

FACT #1: There is no "Obama phone." The Lifeline program has always enjoyed broad bipartisan support and dates back to 1985. The whole notion of an "Obama phone" is a hoax that has been rebutted by several leading news organizations and fact-checking groups. The simple truth is that the Lifeline program started during the Administration of President Ronald Reagan under a Republican chairman of the Federal Communications Commission (FCC). The program was later refined by a Republican-controlled Congress in 1996 following enactment of the 1996 Telecommunications Act.

FACT #2: Taxpayers do not pay a penny for wireless Lifeline. Cutting the Lifeline program will not reduce the federal deficit by one cent. That is because federal funds do not pay for Lifeline. The program is not funded with tax dollars. Instead, this program is funded by contributions from telecommunications companies, which can elect to share the costs of those contributions with their subscribers. Companies that offer free wireless cell phone services pay for the phone themselves. Far from imposing a burden on taxpayers, wireless Lifeline has been documented to help low-income people find and keep jobs, which ultimately reduces spending on public assistance programs.

FACT #3: Lifeline treats landlines and cell phones exactly the same. Prior to 2008, the federal Lifeline program offered a benefit of $10 a month for landline phones used by eligible, low-income Americans. In 2008, the Bush Administration's FCC brought Lifeline into the 21st Century by making available exactly the same benefit for wireless phones. The federal government had already decided that universal telecommunications access is a national priority and the creation of wireless Lifeline simply extended the goal set more than two decades earlier during the Reagan Administration. Important note: Only one Lifeline supported service (landline or wireless) may be obtained by any household.

FACT #4: Cell phones are not subsidized under wireless Lifeline. Companies that offer free phones under Lifeline wireless cover the cost of the phones themselves. No tax dollars and no portion of Universal Service Fund support is used to offset the free phones that some wireless Lifeline companies provide to their customers.

FACT #5: The wireless Lifeline program is tightly regulated to control fraud and abuse. There is a strict prohibition against beneficiaries receiving Lifeline benefits for more than one phone service. The FCC recently took actions to further tighten eligibility requirements and transparency in the wireless Lifeline program. Many of the eligibility requirements that were adopted were done so at the urging of TracFone Wireless. The FCC included such TracFone-backed reforms as a 60-day non-usage policy, identity checks by using the individual's name, date of birth, Social Security Number and address and most importantly, the creation of a national database to verify applicant information by 2013. TracFone has been a proven leader in preventing waste, fraud and abuse and is currently working to form public/private partnerships with states to help create the national database and to enable Lifeline providers to access existing state databases.

FACT #6: Participation in wireless Lifeline is far below what it should be. For over 25 years, the Lifeline program was largely dormant, in large part due to telecommunications companies failing to create awareness among low-income families that the service existed. With the advent of free wireless Lifeline the penetration rates increased. However, only about a third of eligible households nationwide are currently benefiting from Lifeline. In 2012, only six states had participation rates exceeding 50 percent of income-eligible households. That means fewer Americans are without jobs or the ability to keep their jobs. (Research shows that wireless Lifeline helps people who have jobs keep them and also aids those who need jobs to find them.) It is important to also note that Americans have been suffering through the worst economic crisis since the Great Depression. As the economy improves, fewer households would qualify for Lifeline services.

Read more here: http://www.miamiherald.com/2012/10/11/3045080_tracfone-wireless-inc-issues-fact.html#storylink=cpy
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Zxereus · Oct 12, 2012

All the minorities in Cleveland got a 'Bamaphone. Just ask the woman in the vidyo.

kk8 · Oct 12, 2012

Lunchboxxy said: ↑

Oh boy! another random lady! More proof! The phones that woman has aren't even safelink phones....
Click to expand...

Ahhh yes "the Obama voter"

Grokmaster · Oct 12, 2012

Think for myself said: ↑

From your link.

But the Obama part is not true as Obama didnt initiate this program. Its on the run since the administration of Reagan. This program has two parts: one is called the Link-Up which provided free landline connection to the poor and the other is called the Lifeline which provides waiver on telephone bills. These two programs are simply called Lifeline when lumped together.

http://obamaphone.net/what-is-the-obama-phone
Click to expand...

Please provide photos of the cell phones that were provided under the Reagan Adm.

Zxereus · Oct 12, 2012

kk8 said: ↑

Ahhh yes "the Obama voter"

Click to expand...

Next time I need to throw-up, I'll pull out this picture.

Lunchboxxy · Oct 12, 2012

Grokmaster said: ↑

Please provide photos of the cell phones that were provided under the Reagan Adm.
Click to expand...

The lifeline program started under Reagan. In 2008, the program was extended to include cell phones as well. The benefits are the same.

FACT #3: Lifeline treats landlines and cell phones exactly the same. Prior to 2008, the federal Lifeline program offered a benefit of $10 a month for landline phones used by eligible, low-income Americans. In 2008, the Bush Administration's FCC brought Lifeline into the 21st Century by making available exactly the same benefit for wireless phones. The federal government had already decided that universal telecommunications access is a national priority and the creation of wireless Lifeline simply extended the goal set more than two decades earlier during the Reagan Administration. Important note: Only one Lifeline supported service (landline or wireless) may be obtained by any household.
Click to expand...

http://www.miamiherald.com/2012/10/11/3045080_tracfone-wireless-inc-issues-fact.html

Lunchboxxy · Oct 12, 2012

kk8 said: ↑

Ahhh yes "the Obama voter"

Click to expand...

When you have no argument, post an irrelevant picture.

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