Your tax dollars going down the toilet

[Willy]

I received this photo from a friend yesterday. It is a picture of a busy street in Lansing where free phones are being given away. This reminds me of a kids lemonade stand except a kid would be engaged in a free enterprise business while this is a socialistic Government handout. These phones are being given out all over the Country to the tune of billions of our tax dollars. I've been aware of these phones for quite some time as most of you are but I'm amazed that the Government is setting up small tents on corners trying to give these things away.

[Lisa O'Brien]

According to what I read Obama didn't start this program and tax payers are not essentially paying for it.

"The federal program wasn’t started by President Obama. It dates back to 1996, as part of the Telecommunications Act of 1996. The Act did a number of things, including increasing internet access to doctors and patients in rural hospitals (for consults with specialists); subsidizing internet and phone coverage for schools and libraries and providing free or subsidized coverage for families who can’t afford it so that they have links to emergency and government services. The Act was not taxpayer funded… exactly. Taxpayers do pay for coverage but not via federal income taxes. Instead, the Act “mandated the creation of the universal service fund (USF) into which all telecommunications providers are required to contribute a percentage of their interstate and international end-user telecommunications revenues.” So that little fee on your phone bill labeled USF? That’s what you’re paying for."

http://www.forbes.com/sites/kellyphillipserb/2012/09/28/crazy-for-o...

[Willy]

When the program was started it was to get landlines to rural areas and the cost for it was collected from surcharges on phone bills. Even tho almost everyone now has a land line  and there is no need for the program, Obama put this program into high gear to provide cell phones [bush started it modestly]  and it has sky rocketed into billions of dollars including tax dollars. Obama has taken a program and put it on steroids.

[Lisa O'Brien]

I don't have a land line and neither do the majority of my friends - it's a waste of money, when you can pay roughly the same with a cell and it goes everywhere with you.

[Dave]

Actually, the program dates back to the Reagan presidency. The program was started to help people that couldn't normally afford a telephone and that have health issues to be able to contact doctors, hospitals or if  needed, an ambulance.

[Willy]

When I was speaking of Bush I was referring to the inclusion of cell phones in the program. Bush's program was very modest compared to Obama's out of control spending on this program.

[XLFD]

Willy, did your friend corroborate that this was giving out the so-called Obama-phones and free government-sponsored minutes?  Could it have been a gimmick for some other business to lure them into what would turn into an expensive service plan later?  Many cell phone vendors give away phones or minutes for free if you sign a two year contract or the like. 

[Willy]

He stopped to see what was going on and it is a Government assistance program according to the person he talked to. I thought the same thing as you but my friend says the Government is involved in this program. I'm sure it is run by a private company which gets reimbursed by the Government.

[masonco]

I know some people who got the Obama phone. No one told there there is a limit of 200 free minutes and then they had to pay for minutes. It was cheaper to get a pre pay phone than pay the minutes for the "free" phone. What is 200 minutes each month? Especially if you get put on hold everytime you call the doctor. 

The free minutes is less than 3 1/2 hours talk time a month. So they get them into paying the overpriced minutes after that...especially if this is the only phone they have. With Landline you could get "free" calls in and your minutes counted only if you called out. Cell phones calls in or outgoing calls both use minutes. 

Correct me if I am wrong since the source I had on this was not always accurate.

[easymoney]

My neighbor, has one , and for an additional five bucks, you get unlimited minutes and text. It's based on your income.

Its also supposed to be for a contact # when applying for a job (as if most are trying to get employment,ha ha)

[XLFD]

I know a couple of folks who have been solicited for these phones by the mail, and even though they gave out some personal information and sent the material back, they never heard any more about it.  As one had a bridge card and 'medicaid' with just a part-time job at the time, it would be surprising they didn't qualify.

I know it's a pipe dream, but I would like to see the availability of 'limited-use phones' by companies that employ people at low-end jobs that would allow someone to be able to communicate with that employer at the least.  Cell phone bills even without frills are pretty high.

[masonco]

But basic cell phone (pre Pay) is still much  cheaper than land line phone. Even my smartphone plan is cheaper than just 50 calls a month...no other features or long distance was higher than my smartphone bill and reception is better with no static on the phone. Plus where I live, Ludington is long distance and the majority of my calls were to Ludington.

[Willy]

Masonco

You hit on a good point about land lines. A relative of mine lived in an area where all of their calls to family members were long distance even though they were separated by only a few miles. Another reason to dump land lines.