Free government cell phone redistribution subsidy filled with fraud?

Say it isn’t so. I laugh when people refer to the federal government’s cell phone as an Obamaphone. Certainly, the use of the program has exploded in the last few years, but it was started with landlines in 1984 and expanded to cell phones in 2005. This is part of the expansion of government “services” since the New Deal, but at least now we’re getting an idea of how much fraud was involved.

From the Wall Street Journal. At least the Obama administration took the step to request subscribers verify eligibility.

A review of five top recipients of Lifeline support conducted by the FCC for the Journal showed that 41% of their more than six million subscribers either couldn’t demonstrate their eligibility or didn’t respond to requests for certification.

The carriers — AT&T T Inc.; Telrite Corp.; Tag Mobile USA; Verizon Communications VZ Inc.; and the Virgin Mobile USA unit of Sprint Nextel Corp. – accounted for 34% of total Lifeline subscribers last May. Two of the other largest providers, TracFone Wireless Inc. and Nexus Communications Inc., asked the FCC to keep their counts confidential. Results for the full program weren’t available.

That’s right…

  • Prior to the FCC rules change last year, subscribers did not have to verify eligibility with the carrier. They were allowed to self-verify.
  • When the carriers were instructed by the FCC to reach out to verify eligibility, almost half of the subscribers were not eligible or ignored the request.

I get the impression from the article those who could not verify eligibility had their services shut off. You would think there would be a huge outcry by the 40 percent of subscribers who were cut off, but curiously … nobody seems to be complaining.

This federal government redistribution program (that’s what it is) “legally” steals money from subscribers and provides free or extremely low-cost services to others, while the carrier is provided a profit. For years this fraud was allowed to continue, and I’m willing to bet nobody will be blamed. The US government “spent about $2.2 billion last year to provide phones to low-income Americans.”

We have years of data about who received the services and never verified eligibility. How about we demand they pay for the services received and provide a refund to those who paid the bills?

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Steve McGough

Steve's a part-time conservative blogger. Steve grew up in Connecticut and has lived in Washington, D.C. and the Bahamas. He resides in Connecticut, where he’s comfortable six months of the year.

12 Comments

  1. Linda Mae on February 12, 2013 at 11:03 am

    ??? Prior to the FCC rules change last year, subscribers did not have to verify eligibility with the carrier. They were allowed to self-verify.
    ??? When the carriers were instructed by the FCC to reach out to verify eligibility, almost half of the subscribers were not eligible or ignored the request.
    .
    Perhaps this is why we’re broke….fraud.? Question – why and how is it allowed to continue?? There are people in need – but this is a major waste of money we don’t have and have to borrow – put on the gov credit card to be paid for by our babies.? Reports suggested Korea was practicing cannibalism due to poverty…we’re cannibalizing our babies by giving them the bills we don’t pay.? Perhaps this is why the admin has not made a budget for the past 4 years – even law says that they must!!!



  2. stinkfoot on February 12, 2013 at 12:54 pm

    Genius demagoguery… this topic is rife with rhetorical booby traps that evoke visceral reactions to the people benefiting from the redistribution instead of the politicians instigating the whole mess.



  3. JBS on February 12, 2013 at 3:06 pm

    Of course it’s fraud!
    It is a Democrat handout to “da pour peoples” to keep them voting for Democrats. It’s an excellent way to keep the faithful organized and direct them to the next voting spot. Also, each free phone is useful for calling a cab, ordering a pizza, making your connection, scheduling ‘crat ward meetings, and staying informed of DNC news and all of those other necessary things.
    It probably has a photo of the One as a background



  4. cherwin on February 12, 2013 at 8:06 pm

    A fraud along with all the other giveaway program fraud going on. If they made an effort to stop the fraud they would have enough money for great healthcare for all.? I give up on being concerned with the fraud because I have seen it for so many years and it is so obvious that they turn a blind eye to it. It’s never going to change because they would have to crack down on certain groups and that wouldn’t be PC. The same goes for the murders and other crimes that occur everyday in every inner city in this country. Political Correctness and fear of hurting someone feelings is dragging this country down in the gutter.



  5. Dimsdale on February 12, 2013 at 9:36 pm

    Everything with an “?bama” in front of it, i.e. the ?bama administration, ?bamanomics, ?bamacare etc., it the very epitome of incompetence, political bias and government waste, not to mention inherently destructive to the U.S.?
    ?
    Why should the ?bamaphone be any different?



    • JBS on February 13, 2013 at 1:01 pm

      ?
      Does that mean the phones are the smartest phones in the room?
      ?
      ?
      ?



  6. ricbee on February 12, 2013 at 11:13 pm

    This very day I received an offer for a free phone & it said.” send no original documents”-they’ll except forgeries obviously.



  7. Linda Mae on February 13, 2013 at 12:18 pm

    the Wall Street Journal has a report out this week that not only sheds light on the cost of this program, but also takes a look at eligibility:

    The U.S. government spent about $2.2 billion last year to provide phones to low-income Americans, but a Wall Street Journal review of the program shows that a large number of those who received the phones haven?t proved they are eligible to receive them.
    The Lifeline program?begun in 1984 to ensure that poor people aren?t cut off from jobs, families and emergency services?is funded by charges that appear on the monthly bills of every landline and wireless-phone customer. Payouts under the program have shot up from $819 million in 2008, as more wireless carriers have persuaded regulators to let them offer the service.
    The Washington Free Beacon reported in October that ?the wireless company profiting from the ?Obama-phone? giveaway program is run by a prominent Democratic donor whose wife raised more than $1.5 million for the president since 2007.?
    The report points out that Miami-based TracFone Wireless is one of the major providers of the free cellphones and that President and CEO Frederick ?F.J.? Pollak ?donated at least…



    • Steve McGough on February 13, 2013 at 7:47 pm

      I hate to point this out, but that’s the article I linked to and quoted.



    • Linda Mae on February 14, 2013 at 2:34 pm

      Yes- just wanted to see the facts provided repeated….
      My cousin claims? we need to call it a Reagan phone since it started then.? I argued we call it Obamaphone since that is when the fraud started and proof of eligibility was ignored. ?
      He also stated that it was not paid for by the gov….we pay in our cell phone bills…really made me happy to hear that…why do liberals wear blinders which prevent facts and common sense from penetrating the brain????
      frustrating….



  8. Linda Mae on February 13, 2013 at 12:20 pm

    The Washington Free Beacon reported in October that ?the wireless company profiting from the ?Obama-phone? giveaway program is run by a prominent Democratic donor whose wife raised more than $1.5 million for the president since 2007.?
    The report points out that Miami-based TracFone Wireless is one of the major providers of the free cellphones and that President and CEO Frederick ?F.J.? Pollak ?donated at least $156,500 to Democratic candidates and committees this cycle, including at least $50,000 to the Obama campaign.?
    http://www.bizpacreview.com/2013/02/12/obama-phone-scam-cost-taxpayers-big-bucks-last-year-19952



  9. SeeingRed on February 14, 2013 at 10:44 am

    Free government cell phone redistribution subsidy filled with fraud?
    SHOCKING.
    Next you’ll tell me that a free cell phone is a Democrat?get out the vote effort.? Or that ‘participating’ carriers are being leaned on or just currying favor with the left.? Say it ain’t so.



square-free-phone

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