First Obama Phones – Now Obama Web
by Tom Balek, Contributing Author: On Thursday, June 18, the Federal Communications Commission will review and perhaps vote on a proposal to expand the “Lifeline” telephone subsidy program to include entitlements for broadband Internet services for the poor.
The Lifeline program was authorized by Congress in 1985 with good intentions. It provided subsidies for land-line telephone service to low-income citizens, on the theory that a telephone is necessary to maintain basic health and safety. The program, funded by federally mandated surcharges on consumer telephone bills, flew under the radar until 2005 when it was expanded to include cellular phone service.
The subsequent rapid growth and explosion of fraud and abuse in the program drew considerable attention as free cell phones, derisively dubbed “Obama Phones,” were widely distributed – even unscrupulously collected and resold – with little qualification or oversight. The program cost $1.6 billion in 2014.
To test the veracity of reports that virtually anybody could apply for and receive an “Obama Phone,” this author filled out an online application (honestly) and hit “Enter.” Four days later, I had a new cell phone, complete with 250 minutes of cellular service per month and unlimited texts. It’s mine to use, apparently forever, no questions asked. And I don’t think anybody who knows me would consider me the slightest bit “in need.”
In 2012, pushed by congressional oversight, the FCC attempted to assert some discipline in the program. While costs were somewhat reduced, the rampant fraud continues, according to FCC Commissioner Michael O’Rielly. He wants to see the Lifeline program cleaned up before any consideration is given to expanding the entitlement. O’Rielly would:
After decades of relative obscurity, the FCC, under Wheeler, is grabbing headlines with regularity this year. Their new “net neutrality” rules took effect last week, making Internet service providers regulated utilities like phone companies, and preventing them from charging higher rates to high volume customers. Congress has vowed to undo the new provisions and might even cut the FCC’s budget.
The FCC will hold their Open Commission Meeting tomorrow on Lifeline reform at 10:30 AM ET, among other topics.
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Tom Balek is a fellow conservative activist, blogger, musician and contributes to the ARRA News Service. Tom resides in South Carolina and between playing in weekend bands, he seeks to educate those too busy with their work and families to notice how close to the precipice our economy has come. He blogs at Rockin' On the Right Side
Tags: Tom Balek, Rockin' On The Right Side, Obama Phones, Obama Web, FCC, net neutrality, To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
The Lifeline program was authorized by Congress in 1985 with good intentions. It provided subsidies for land-line telephone service to low-income citizens, on the theory that a telephone is necessary to maintain basic health and safety. The program, funded by federally mandated surcharges on consumer telephone bills, flew under the radar until 2005 when it was expanded to include cellular phone service.
The subsequent rapid growth and explosion of fraud and abuse in the program drew considerable attention as free cell phones, derisively dubbed “Obama Phones,” were widely distributed – even unscrupulously collected and resold – with little qualification or oversight. The program cost $1.6 billion in 2014.
To test the veracity of reports that virtually anybody could apply for and receive an “Obama Phone,” this author filled out an online application (honestly) and hit “Enter.” Four days later, I had a new cell phone, complete with 250 minutes of cellular service per month and unlimited texts. It’s mine to use, apparently forever, no questions asked. And I don’t think anybody who knows me would consider me the slightest bit “in need.”
In 2012, pushed by congressional oversight, the FCC attempted to assert some discipline in the program. While costs were somewhat reduced, the rampant fraud continues, according to FCC Commissioner Michael O’Rielly. He wants to see the Lifeline program cleaned up before any consideration is given to expanding the entitlement. O’Rielly would:
- Set a budget for the Lifeline program – it currently has no limits on spending
- Disallow any increase in the reimbursement rate paid to providers for adding broadband services
- Limit the services covered under the program
- Offer subsidies to only those who really need it – a survey indicated 19 out of 20 Lifeline users would have their own smart phones even if the program didn’t exist
- Require participants to have “skin in the game” – no more completely free phones
After decades of relative obscurity, the FCC, under Wheeler, is grabbing headlines with regularity this year. Their new “net neutrality” rules took effect last week, making Internet service providers regulated utilities like phone companies, and preventing them from charging higher rates to high volume customers. Congress has vowed to undo the new provisions and might even cut the FCC’s budget.
The FCC will hold their Open Commission Meeting tomorrow on Lifeline reform at 10:30 AM ET, among other topics.
---------------
Tom Balek is a fellow conservative activist, blogger, musician and contributes to the ARRA News Service. Tom resides in South Carolina and between playing in weekend bands, he seeks to educate those too busy with their work and families to notice how close to the precipice our economy has come. He blogs at Rockin' On the Right Side
Tags: Tom Balek, Rockin' On The Right Side, Obama Phones, Obama Web, FCC, net neutrality, To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
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