View Full Version : Free Cellphone Program Exhausting Area Code (405) Phone Numbers



OKCTalker
02-19-2013, 09:50 AM
Abuse Concerns Grow on Phone Aid for Poor - WSJ.com (http://online.wsj.com/article/SB10001424127887323764804578312574084396946.html?m od=WSJ_hps_LEFTTopStories)

This Wall Street Journal story focuses on the "Lifeline" program, one intended to provide subsidized phone service for the poor. Unfortunately it's quickly grown out of control and appears to be rife with abuse. Unfortunately, Oklahoma was the topic of the story because the fraud here is so rampant that the 405 area code is expected to soon run out of phone numbers. The lead:

Regulators looking into the burgeoning federal program to provide subsidized phone service for the poor are finding growing cause for concern.

Last year, the government spent an estimated $2.2 billion on the Lifeline program, up from $819 million four years earlier, as dozens of small companies were authorized to start providing the service.

Now, inquiries in states from Alaska to Florida are raising questions about the source of that growth, according to a review of documents in federal and state investigations.

Investigators say they have turned up some unorthodox tactics by companies participating in the program, such as signing up customers in hospital rooms and enrolling subscribers by mailing them unsolicited phones. In other cases they have uncovered more straightforward attempts to sign up ineligible customers, according to federal and state documents.

While the inquiries have touched only a small number of the dozens of companies that provide the wireless service, they reflect regulators' growing concern that a program aimed at ensuring people have the ability to call their families, jobs or for emergency help has got out of hand as the number of companies providing the service has exploded.

"Waste and fraud in this vital program are simply unacceptable," said Federal Communications Commission spokeswoman Tammy Sun.

In one of the most recent inquiries, the Oklahoma Corporation Commission is reviewing providers of that state's Lifeline program, which is growing so fast that a telecom administrator says the state is likely to exhaust the supply of phone numbers in the 405 area code sooner than expected.

This month, the Oklahoma commission's staff sent show-cause letters to five carriers approved to participate in the program—TerraCom Inc., True Wireless Inc., Assist Wireless, Easy Telephone Services Co. and Icon Telecom Inc.—saying they suspect they have signed up ineligible customers. Copies of the letters were reviewed by The Wall Street Journal.

True Wireless received about $46 million under the program in 2012, according to one letter. In the letter, the staff questioned whether legitimately signing up so many subscribers was mathematically possible, and said a preliminary review of the company's subscriber list indicated some customers had signed up multiple times in violation of federal rules.

"A statistical calculation…appears to indicate True Wireless is servicing an unrealistic number of customers in the state of Oklahoma," the staff wrote.

Just the facts
02-19-2013, 10:09 AM
Meanwhile, back at the ranch ...er... Tinker, people are facing 22 day furloughs to cut spending. Anyhow, I guess since this is a 'vital program' doing anything about it might result in people dying in the street. Also, before anyone start balmming Obama, this program was started by Bush and an add-on to a program started by Reagan. Slippery slopes get you every time.

venture
02-19-2013, 10:19 AM
I'm kinda shocked we are just now approaching maxing out the 405 area code. I've lived in smaller areas that had their numbers exhausted and had to add a new overlay. I know Eastern Oklahoma finally got the new 539 area code to overlay the 918 region, so I guess it is only a matter of time for us. Yay 10-digit dialing...how I've missed you. :-P

CuatrodeMayo
02-19-2013, 10:21 AM
Yay 10-digit dialing...how I've missed you. :-P

Hey man, we're a Big League City now :)

OKCisOK4me
02-19-2013, 10:53 AM
At my work..half the people we call with 405 area codes...its a 7 digit or 11 digit call (don't forget about the 1 when dialing from a landline).

OKCTalker
02-27-2013, 09:04 AM
Oklahoma Lifeline Companies To Pay More Than $1 Million To FCC - News9.com - Oklahoma City, OK - News, Weather, Video and Sports | (http://www.news9.com/story/21389166/two-oklahoma-lifeline-companies-to-pay-more-than-1-million-to-fcc)

kelroy55
02-27-2013, 09:30 AM
Are there that many people in the area that qualify for the phone assistance?

BBatesokc
02-27-2013, 09:36 AM
Are there that many people in the area that qualify for the phone assistance?

Any day of the week you can drive along SW/SE 44th street from Western to I-35 and see no less than 5 of those FREE Cell PHONE tents setup with a line of people at each one. Several stores have had to put covers over their exterior electric outlets to keep the homeless, drug addicts, hookers, etc. from charging their phones.

kelroy55
02-27-2013, 10:00 AM
Too bad a program for the needy is exploited this way.

BBatesokc
02-27-2013, 10:37 AM
Too bad a program for the needy is exploited this way.

Maybe I'm missing something, but I don't get why money should be spent giving 'the needy' cell phones at all. My understanding is any cell phone can dial 911, even if you don't have a plan or service. So why not just give 'the needy' a no longer needed cell phone and a charger?

JayhawkTransplant
02-27-2013, 03:39 PM
It is difficult to obtain or maintain a job if you don't have a phone. It is also difficult to care for children without a phone.

Larry OKC
02-27-2013, 03:50 PM
Are there that many people in the area that qualify for the phone assistance?

I wouldn't be surprised and I am not sure if abuse is taking place (but you don't know if you don't look). If not mistaken, one of the criteria was if you qualified for the free or reduced school lunch programs, you also qualified for the phone freebie. Considering that almost 90% of Oklahoma City Public School students qualify....

Video Expert
02-27-2013, 04:00 PM
It is difficult to obtain or maintain a job if you don't have a phone. It is also difficult to care for children without a phone.

You have a point. However, they need to revert the program back to include Land Lines only. The expansion of the program to include cellphones is why you see all of the abuse and skyrocketing fees the rest of us are being forced to cover.

BBatesokc
02-27-2013, 10:00 PM
It is difficult to obtain or maintain a job if you don't have a phone. It is also difficult to care for children without a phone.

What does that have to do with cell phones? Cell phones have not been widely available to the masses for all that long and it seems people managed to find jobs and raise kids just fine without a cell phone. Want to give away landline phones? Go for it. But I've yet to hear a convincing reason why 'the needy' NEED a cell phone.

kelroy55
02-28-2013, 06:38 AM
Which is cheaper, a land line or a cell phone?

NoOkie
02-28-2013, 08:33 AM
You have a point. However, they need to revert the program back to include Land Lines only. The expansion of the program to include cellphones is why you see all of the abuse and skyrocketing fees the rest of us are being forced to cover.

I suspect a lot of the push for this was that the LECs want to eventually abandon traditional wireline service. I recall a news story about AT&T petitioning the FCC to drop their wireline coverage requirements for rural areas.

As for the needy getting cell phones, it doesn't bother me. I'm not keen on it being exploited, but I find there's a lot of focus on waste in welfare programs when that waste is often a (small) minority portion of the cost. A basic, no-frills landline(No long distance, no call waiting, no caller ID, no etc) costs about $20 a month with no subsidy. A basic, contract cell phone runs about $30 with no subsidy. Given that many truly impoverished people live very migratory lives, I see this as an acceptable cost given the benefit it provides.

As far as I'm aware, we're not talking about fancy smart phones with apps and GPS and bells and whistles(Which I do view as a luxury), we're talking about a simple "dumb phone" that makes phone calls and does text messages. Given the greater utility of a mobile phone, especially with people that often don't have permanent housing, it makes sense to me.

Also, people get way too upset about 10 digit dialing.

onthestrip
02-28-2013, 09:01 AM
Which is cheaper, a land line or a cell phone?

Cox has a reduced land line program for like $1 a month. There are a list of requirements to be eligible such as if your are on receiving TANF, SNAP and a ton of others.

kelroy55
02-28-2013, 09:09 AM
Cox has a reduced land line program for like $1 a month. There are a list of requirements to be eligible such as if your are on receiving TANF, SNAP and a ton of others.


There ya go, give them a land line.

NoOkie
02-28-2013, 09:25 AM
There ya go, give them a land line.

Just remember that that $1 cost is being subsidized by the same sorts of programs that subsidize the free cell phone program. Shows up as the "Universal Service Fee" or something similar on your bill.

kelroy55
02-28-2013, 09:38 AM
How about a couple tin cans and a ball of string?

NoOkie
02-28-2013, 09:41 AM
How about a couple tin cans and a ball of string?

Smoke signals have better range.

kelroy55
02-28-2013, 09:51 AM
Smoke signals have better range.


true but then everybody could listen in

NoOkie
02-28-2013, 10:06 AM
true but then everybody could listen in

We can provide free codetalking classes instead!

venture
02-28-2013, 10:25 AM
Why not bring back carrier pigeons?

kelroy55
02-28-2013, 12:18 PM
Why not bring back carrier pigeons?

too many get shot for food