Georgia clamps down on free cell phone calls for the poor
Georgia became the first US state that will begin charging low-income residents $5 per month for cell phone service now provided for free (250 minutes per month) by the federal Universal Service Fund.
The new fee is already under court challenge by the cell phone industry trade association. CTIA filed suit against Georgia months ago -- even before the measure received final approval -- claiming that by adding the $5 fee, the state is setting cell phone rates, which it does not have the legal power to do. However, according to state Public Service Commissioner Doug Everett, the fee is designed to reduce fraud in the federally subsidized Lifeline program. Commissioner Everett noted that the number of Lifeline customers in Georgia jumped from around 100,000 a decade ago to more than a million in 2011, but is now back down to around 740,000. The $5 monthly fee, scheduled to start Jan. 31, will require that telephone companies send customers a bill each month. Telephone companies will keep the $5 monthly fee, but it will not fully cover the administrative costs of sending out bills, the commissioner added.