TECHNOLOGY Updated February 11, 2013, 9:51 p.m. ET
THE WALL STREET JOURNAL
Millions Improperly Claimed U.S. Phone Subsidies
By SPENCER E. ANTE
The U.S. government spent about $2.2 billion last year to provide phones to low-income Americans, but a Wall Street Journal review of the program shows that a large number of those who received the phones haven't proved they are eligible to receive them.
Suspecting that many of the new subscribers were ineligible, the Federal Communications Commission tightened the rules last year and required carriers to verify that existing subscribers were eligible. The agency estimated 15% of users would be weeded out, but far more were dropped.
A review of five top recipients of Lifeline support conducted by the FCC for the Journal showed that 41% of their more than six million subscribers either couldn't demonstrate their eligibility or didn't respond to requests for certification.
The program is open to people who meet federal poverty guidelines or are on food stamps, Medicaid or other assistance programs, and only one Lifeline subscriber is allowed per household.
Americans pay an average of $2.50 a month per household to fund a number of subsidized communications programs, including Lifeline.
http://online.wsj.com/article/SB10001424127887323511804578296001368122888.html?mod=ITP_pageone_0
THE WALL STREET JOURNAL
Millions Improperly Claimed U.S. Phone Subsidies
By SPENCER E. ANTE
The U.S. government spent about $2.2 billion last year to provide phones to low-income Americans, but a Wall Street Journal review of the program shows that a large number of those who received the phones haven't proved they are eligible to receive them.
Suspecting that many of the new subscribers were ineligible, the Federal Communications Commission tightened the rules last year and required carriers to verify that existing subscribers were eligible. The agency estimated 15% of users would be weeded out, but far more were dropped.
A review of five top recipients of Lifeline support conducted by the FCC for the Journal showed that 41% of their more than six million subscribers either couldn't demonstrate their eligibility or didn't respond to requests for certification.
The program is open to people who meet federal poverty guidelines or are on food stamps, Medicaid or other assistance programs, and only one Lifeline subscriber is allowed per household.
Americans pay an average of $2.50 a month per household to fund a number of subsidized communications programs, including Lifeline.
http://online.wsj.com/article/SB10001424127887323511804578296001368122888.html?mod=ITP_pageone_0
