FCC Wants $25 Million for Cell Phone Subsidy Program 'Fraught with Fraud' - US News and World Report
The Lifeline program was created to allow low-income families to call 911 in case of an emergency but has since expanded to include cellphones and, soon, mobile broadband.
"It started out with, 'Every household should have a dialtone, so you [could] call in an emergency,'" says Larry Downes of the technology think tank Tech Freedom. "Well, then it became, 'They should have basic phone service. They should have a basic cellphone service.' They say it's become a basic staple of life. You can't argue with that, but your electric bill doesn't charge you a tax to make sure poor people have electricity."
The new FCC rules also allow for low-income families to apply for free or reduced-price [mobile] broadband service, which [FCC Chairman Julius] Genachowski says is "rapidly becoming a necessity, not a luxury." The pilot program will provide $25 million to test out how the program will work.
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