Misconceptions about the Obamaphone

CBS Miami is doing a fantastic series of articles about the misconceptions and myths of the ‘Obamaphone,’ also known as the Lifeline Program. During President Obama’s first term, there was a lot of media coverage on both sides about the existence, problems and benefits of the program and it became quite sensationalized. Here are some of the most common myths that the article debunks: 

Myth: The Obamaphones are free phones given away by President Obama

Truth: The Lifeline program was actually launched in 1984 under the Reagan administration and was originally intended for landlines. Wireless plans were added in 2005 during the Bush administration. In 2008, Bush amended the program to allow households to decide between receiving discounts on landline or wireless services. Discounts on both are not allowed.

Myth: The Government provides and pays for the free phones

Truth: The free phones are provided by the cellular service providers like QLink Wireless–not the government. These companies do get some incentives (mostly tax-based) from the government for participating in the program.

Myth: The Obamaphone is simply more handouts for those already receiving welfare

Truth: The Lifeline program can be used by anyone who meets certain criteria. While welfare does qualify a citizen to assistance, it is not the only program that does. Other plans that will qualify citizens include SSI, TANF, Medicaid and Federal Public House Assistance.

Myth: The Obamaphone is funded completely by taxpayers

Truth: Telecommunications companies provide the money for the program via required FCC Universal Service Fees which are sometimes passed on to consumers. It normally costs only a few dollars, and not every company charges this fee to their customers.

Myth: The program is rampant with fraud

Truth: The FCC polices the program to prevent fraud, and in 2012 started a database to cut down on duplicate benefits. While fraud likely still happens on occasion, it is nowhere near as rampant as some might believe.

All in all, the Lifeline Assistance program is intended to help those who are unemployed find work by offering a reliable means of communication. The logic is that its impossible to get an interview and a job if you have no way for a company to contact you. For a full explanation of other common misconceptions and myths and more information, check out the CBS article and let me know what you think in the comments!]]>