Food, shelter ... and cell phones?
Posted
Jan 12 2009, 12:42 PM
by
Kim Peterson
Rating:
Is the cell phone a basic human right? That's the question the Toronto Star asks about a U.S. program that gives free phones and talk time to people on welfare or at poverty-level incomes.
The stock to watch in this area is America Movil (AMX), whose TracFone Wireless subsidiary runs the program. TracFone, by the way, has more than 10 million subscribers and is the top prepaid wireless service in the U.S.
Providing food and shelter to the needy is one thing, but a cell phone? The government pays for most of the program, called SafeLink, which gives users 68 minutes of free monthly airtime for a year with no contracts. That includes voice mail, call waiting, text messages and international calling.
The program is available in parts of four states -- Tennessee, Florida, Massachusetts and Virginia -- and is coming soon to seven eastern states and the District of Columbia (click here for more information).
It's fascinating that cell phones have climbed the ranks of human necessities to be on par with the most basic of services. The issue seemed to take root after Hurricane Katrina, when people without phone access couldn't get help.
There's also the possibility that a cell phone can help the person get a job, moving them out of poverty and off federal welfare.
"Cell phones can significantly boost the earning potential of these communities," said the author of a recent government study on the impact of cell phones on low-income people.
The government pays most of the program's costs, and TracFone picks up the rest. TracFone sells users additional monthly talk time, and could retain them as paying customers once the year of free service ends.
It's too bad that the government couldn't set up this program with a wireless provider in the U.S., rather than a company based in Mexico City.
Image credit: Ildar Sagdejev, GNU free documentation license
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