Obama Phone

Helping Americans with free Lifeline cell phones

  • Home
  • What?
  • Eligibility
  • Get one
  • Providers
  • States
  • FAQ
  • History
  • News
  • Contact

California doubles down, offers Obama Phone companies more money

February 7, 2014 | | Filed Under: Programs Tagged With: California

While politicians in some states talk about backing away from the Obama Phone program, California’s Public Utility Commission (PUC) is taking the opposite approach. The PUC just announced that it would ante up state funds and pay the companies more than double the federal subsidy for some accounts.

Although we are nearly six years past the world’s economic meltdown, poverty and unemployment remain at troubling high levels in California. That’s why the PUC has acted so boldly to bolster the Obama Phone program and help the state’s needy millions with this subsidy.

Thanks to these newly-approved regulations, California will soon begin paying this “bonus” money to the state’s Obama Phone companies. An old economic truism says, “Whenever you subsidize something, you get more of it.” As a result, we expect numerous Obama Phone companies to begin doing business in California, leading to increased competition and better service for the state’s financially-challenged residents.

Let’s get into the specifics of the California changes: California will now pay Obama Phone companies an extra $6.35-13.15 per month for each of their customers. That’s on top of the $9.25 those companies are currently paid from the federal fund.

The PUC issued a complex ruling full of acronyms and technical jargon, but we think it’s fair to summarize it thusly: More money means more companies will enter the California market to compete in the free government cell phone business.

California regulators are somewhat legendary for giving a little to get a lot. In this case, they may be paying an Obama Phone bonus, but they’re demanding a lot for customers in return. For example:

California Lifeline customers currently receive 250 free minutes per month. The new regulations will require California LifeLine accounts to include at least 501 minutes per month.

California Lifeline companies currently receive only a $9.25 federal fee per account per month. According to the new regulations, California will pay an additional $6.25 per month for any account that includes 501-999 minutes per month.

California Lifeline companies currently receive only a $9.25 federal fee per account per month. According to the new regulations, California will pay an additional $13.15 per month for any account that includes 1000+ minutes per month.

But the Public Utility Commission was just getting warmed up when it issued those regulations. It also said that calls to an Obama Phone company’s customer service can no longer be counted against a customer’s total monthly minutes, and that all Obama Phone companies shall henceforth be required to offer their customers all handsets that they offer to paying customers.

Source: LifelineLaw

Important Pages

  • A guide to Obama Phone providers in your state
  • Obama Phone News & Updates
  • What is the Obama Phone?
  • Who qualifies for an Obama Phone?
    • Tribal Head Start
    • Veterans Pension and Survivors Pension Eligibility for an Obama Phone
  • How to Get an Obama Phone?
  • Obamaphone Providers
  • Who Started the Obama Phone?
  • Lifeline Facts
  • Obama Phone FAQs
  • Discussion Forum / Q&A

Subsidized Internet Too

The FCC has also encouraged major internet providers to provide high-speed broadband to the very same people that qualify for the Obama Phone. Only $9.95 a month. There are cheap internet plans for both cable and DSL. To learn more please go to CheapInternet.com.

Recent News

  • Dropping like a rock: ObamaPhone enrollment falls by two million in three years
  • $7 Billion Bonanza: The new FCC Broadband Connectivity Fund
  • Sprint charges government for inactive Lifeline customers, FCC fines them $200 million for fraud
  • More than 1,000,000 have already signed up for government’s new $50 per month internet discount
  • Universal broadband for everyone who needs it! Free government cell phones for everyone who needs them! Mark Lowenstein for FCC Commissioner!
  • Could your ObamaPhone arrive with malware installed?
  • Assist Wireless exposes tens of thousands of customer IDs in five states
  • Is it the BidenPhone? Free unlimited talk, unlimited text AND unlimited data for a limited time
  • USAC’s port freeze rule eliminated, ObamaPhone customers can now switch companies at any time
  • Obama is gone, and now his enemies want to kill the Obama Phone program

Return to Top of Page
Copyright © 2025

Privacy Policy