Healthy Financial Habits "Dedicated to helping others form wealth accumulating habits"
  • Free cell phone from Safelink wireless incorrectly called the Obama phone – Obama phone myth busted

    You may have heard of Safelink Wireless from a friend or family member. Safelink is not a new concept but rather an expansion of a program that originates over 20 years ago. The original program, lifeline, was created in 1984 by the Federal Communications Commission (FCC) in an effort to make certain that everyone in the United States had access to quality affordable telecommunications.

    As our lifestyles changed and cellular phone technology arrived and evolved into what it is today, there was a need for lifeline to become mobile.  Realizing this, the Federal Communications Commission approved Tracfone as a provider of a mobile lifeline service. Under the traditional lifeline landline program a discount was given to users in order to make phone service more affordable.

    An email has been circulating accusing president Obama of creating Safelink wireless and using tax payers’ money to fund the free service. The idea quickly dubbed the name “The Obama Phone”. The idea that president Obama created this phone is absolutely absurd.  As explained, phone service subsidization for lower income citizens is not a new concept. This has been going on for over 20 years.

    Who approved Safelink?

    Safelink wireless was recently approved by the FCC (not president Obama) in April of 2008. President Obama took office on January 20th, 2009 – nearly one year after Safelink was approved by the FCC.

    How is funding provided for Safelink?

    Now that the first part of the myth has been busted lets examine how Safelink is funded. The email states that funding for the “Obama phone” is provided by taxpayers.  The actual handset is provided by Tracfone free of charge. The airtime of approximately 68 mins per month, is funded through the Universal Service Fund which is the same fund that lifeline received its money from for years. Any money spent promoting Safelink comes exclusively from Tracfone, a subsidiary of América Móvil.

    If you are interest in a free cell phone from Safelink wireless you must first meet a few requirements. First, the service is only available in a select number of states at this time. Safelink wireless is currently working to expand coverage of their service.  If the service is available in your area you can obtain a phone by having a total household income of 135% below the poverty guidelines set by your state or the federal government. Also, if you currently receive state or federal assistance such as food stamps, Medicaid, or federal housing you may qualify. In addition no one in your household can currently have service through Safelink. Finally, you must have a valid United States shipping address.

    Author: John Smitt

    Published on December 21, 2009 · Filed under: Commodity Watch;
    3 Comments

3 Responses to “Free cell phone from Safelink wireless incorrectly called the Obama phone – Obama phone myth busted”

  1. I am glad that you have made it clear that Obama isn’t involved with this program, I think he has received a lot of undue criticism for this and Neither he or the Safelink program should be criticized at all. I think that Safelink is a very good idea to help people get their feet back under them. I believe that it can help them to find jobs and improve their income as well as being able to call 911.

  2. There has been a huge amount of speculation and criticism from people who really don’t know a thing about this amazing initiative. It provides people with a crucial link to healthcare and professional assistance, as well as helping people stay in touch with family and friends. I can’t believe such a wonderful service has come under such scrutiny. Thanks for clearing this up!

  3. I’m thrilled to see this article up. I have read countless ones about how Safelink is a socialsit progarm and what not. None of that is true and it is just peoples fear of the new presidency.

Leave a Reply