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Georgia’s new $5 per month Obama Phone fee challenged by CTIA

October 22, 2013 | | Filed Under: legal Tagged With: Georgia

The Lifeline Assistance program (popularly called the Obama Phone program) provides financially disadvantaged Americans with a free cell phone and 250 minutes of airtime each month. The service is free in order to help those who can’t afford a cell phone so they can keep in touch with employers, health care providers and family. But now the state of Georgia has begun charging each user a $5 fee each month for what is supposed to be a free service.

Georgia state Public Service Commissioner Doug Everett says that the fee is designed to reduce fraud in the program. Everett says that the cell phone providers are not adequately verifying low-income requirements and the one-phone-per-household rule.

While it’s true that fraud has been discovered in the Lifeline program, the FCC has already instituted strong measures to combat it. In Georgia’s case, there were over one million Obama phone recipients in 2011, but the FCC’s measures have reduced the number to about 740,000. Still, the state measure proceeded and obtained final approval in early October.

The cell phones are paid for and provided to the recipients by various telecommunications companies such as Safelink Wireless, Assurance Wireless and ReachOut Wireless, and the cost of the monthly service is subsidized by the FCC’s Lifeline Assistance program. The money for the subsidy comes from the Universal Service Fee charged in phone bills to paying landline and cell phone customers.

But the new $5 monthly charge is already being challenged by CTIA, the cell phone industry association that represents the vendors of these phones. In fact, the CTIA filed a lawsuit months ago when they heard of the potential new state measure.

The CTIA suit claims that the state of Georgia overstepping its authority by, in essence, setting cell phone rates thorugh the $5 fee. Senior vice-president and general counsel for CTIA said in a statement:

“CTIA will continue to challenge the Georgia Public Service Commission’s decision to set rates on wireless service, which would make Georgia’s consumers pay more than they do today”

Consumer advocacy groups are fighting back. Liz Coyle, spokeswoman for the non-profit Georgia Watch group said, “While we certainly recognize there are instances of fraud and abuse, we believe measures taken on the federal level to crack down on that are working.”

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

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