Thousands of low-income Coloradans reliant on public assistance could get a free cellphone under a plan before the state Public Utilities Commission.
If approved, the plan by TracFone Wireless in Miami would make Colorado the 17th state it has settled into with free cell service for the indigent, a form of wireless welfare that proponents say taps into one of the last untapped markets for the telecom technology.
http://www.denverpost.com/ci_12838433
I am not sure what to say. Obviously it is not something that libertarians would approve of. The definition of a need seems to be changing everyday. TV has become a need that the government recently felt compelled to subsidize by issuing vouchers for digital converters, now a cell phone is considered a need. Where does it stop?
I can see this hurting the poor more than helping. The phones are a "pay as you go" plan. The first 83 minutes are free then they start charging them. I'm sure there's a charge for going over 83 minutes, and then the per minute fees start, and of course the late fees as folks thought it was a free phone... When they rack up a $400+ phone bill who pays? The taxpayer?
This is a scam on the taxpayer, the only ones benefiting is the wireless carrier.
Posted by: Shawn | July 16, 2009 at 07:08 AM
I had not thought of that Shawn, will these phones be able to go above the 83 minutes? If so you are right, they are likely to hurt the poor more than they help. It reminds me of being a kid and my aunt was in college, my grandfather paid for her phone bill and other utilities while she was in school, that was until she racked up a huge long distance bill which wasn't part of the agreement, and she really struggled to pay the LD portion of the bill (this was when the government enforced the LD monopoly, so the prices were outrageous).
Posted by: severin | July 16, 2009 at 06:12 PM
"Pay as you go" is just that.
After the allotted minutes are used, additional one can be purchased. If not, no more calls can be made until they are replenished.
There are never any "late fees" or "overages."
"Pay as you go" means pay as you go.
Using a repaid phone is a worthwhile consideration for ALL, not just indigent people.
Posted by: Dr. TracFone | July 17, 2009 at 09:36 AM
The real question is how much is the govt. spending on assigning these phones and managing the program and how much are they paying per phone? Go phones are as cheap as 10 dollars (referb) but even brand new ones can be had for as low as 20 or 30 dollars. I'll bet (especially if you include overhead) these phones cost the tax payer *way* more then that.
Posted by: Wayne | July 17, 2009 at 03:14 PM
Sorry I misunderstood the cell phone plan. I still don't agree with the gov paying for this.
If you feel the phone is worthwhile start a charity and push the phones out there, don't force the government to do it.
Posted by: Shawn | July 17, 2009 at 03:52 PM
Your taxes are not paying for these phones.
The Universal Line charge on your landline is. So even the recipients of the phones are paying for them if they have a landline.
Right now it is available in 19 states. The minutes per month vary depending on the state.
These are basic phones ($10 models) they are not web enabled so there is no downloading ring tones and watching porn.
There are no cameras, or aps or any of that crap.
Once the minutes are used the phone will stop working until the first 3 days of the following month. You can go out and buy
Tracfone cards at your own expense.
Posted by: Gina | November 04, 2009 at 04:07 AM
The thing is Gina, the Universal line charge is a tax.
Posted by: severin | November 04, 2009 at 05:07 AM
Yes it is a tax but it's a tax that the users of these free phones also pay, if they have a landline.
Posted by: Gina | November 05, 2009 at 04:04 AM