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Wireless Welfare: Free Phones, Minutes For Low Income Users

Universal Service Fees Help Pay For Low Income Users' Phones

POSTED: 4:57 pm MDT July 15, 2009
UPDATED: 11:37 am MDT July 16, 2009

These days you would be hard pressed not to find someone with a cell phone. They have become a part of our everyday lives and some argue it's safer to have one.

A new program wants to make sure those with low income have access to them as well.

TracFone, the nation's leading prepaid wireless provider, is behind the push. TracFone could provide as many as 83 minutes a month and a free phone to people who qualify. The cell phone will offer features like voicemail, text and call waiting.

The money will come from a universal service fee that many cell phone and landline subscribers pay each month. The universal service fee covers a variety of things, such as the Lifeline program.

Lifeline is a federally supported program that ensures telephone service is available and affordable for low-income households. The universal fee also covers service to high-cost areas.

TracFone must first get approval from Colorado's Public Utility Commission before it can draw money from the fees.

It is already up and running in 15 states including the District of Columbia.

The service lasts a year and users can purchase more minutes.

To qualify for the program, a person's household income cannot be above 135 percent of the federal poverty income guidelines and he or she must already receive government assistance from programs such as Medicaid, Supplemental Security Income, Low-Income Energy Assistance Program and Food Stamps.

The Public Utilities Commission said the issue will be discussed next Thursday.
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