verizon wireless free government phone

verizon wireless free government phone

The Impact of Verizon Wireless Free Government Phones on Digital Inclusion

1. Introduction to the Digital Divide and Government Assistance Programs

There are well-documented individual and community benefits of technology access including a bridge to educational resources, improved job opportunities, telecommuting, emergency preparedness, community assessment disaster relief and crime prevention, enhanced availability of government services, a bridge to distance learning, improved healthcare because of distance consulting, training of professionals and specialists in rural and low-income areas, and reduction of unhealthy behaviors such as drugs and crime. The authors explored the effect of a Verizon Wireless free government phone offering on the digital divide. Verizon offered a free government phone with BRL10 to BRL15 in value to qualified Lifeline participants in the urban area of Baton Rouge, Louisiana. The study found an increase in social media engagement from the powerful, unrestricted social media accounts, creating a bridge from disconnectedness to inclusion, and a connection to job opportunities.

Increase access to digital and information technology by low-income and underserved populations has become a national priority. The Ford Foundation, in 2003, reported that during 1997 to 1998 only 29% of people in underserved, low-income communities used office computers and only 6% had access to office support information systems. America is experiencing a graying population as well as increased unemployment and underemployment. The digital divide of those with and without information and technology access will only hinder their ability to compete for the 21st-century jobs. Equitable access to technology is necessary for social and economic competitiveness.

2. Verizon Wireless Free Government Phones: History and Implementation

In 2008, a new model for free government phones debuted: Verizon Wireless free government phones. This study answers the question of whether companies moving to a free government phone model offer a major advancement in the access to affordable voice services for low-income people of all racial and ethnic groups. It offers an intriguing look into the policy implications of the move from free phones to free government phones. The research on this topic answers the following questions: As the link between the cost of phone service and ownership of a phone has become more closely linked due to the increased use of prepaid phones, does the government response through its inclusionary policies also reflect these changes in the telecommunications market? Will the newly created “free government phones” present another option and advance opportunities for digital inclusion of Lifeline customers?

3. Benefits and Challenges of Providing Free Government Phones by Verizon Wireless

Progressing in increasingly slow adoption and use of broadband Internet access has earned the federal government to provide several lifeline related programs designed to make access more ubiquitous and affordable, it is no longer a commodity good, but a critical mass necessity that offers lifeline support pro bono services to eligible lifeline participants. Verizon has been the wireless service provider best known for meeting regulatory requirements but has been generally less active for the principle of digital inclusion-related benefits. Nor have Verizon’s challenges in providing the benefits of the lifeline program. And Verizon’s lifeline offerings have yet to recognize the growing societal concern for post-phone jump to function as digital inclusion channel. This information will open new avenues for academic research in the field of digital inclusion via free phones and government support.

This paper shows that mobile service providers (MSPs) providing free cell phones and service to low-income households are a significant force in bridging the “digital divide”, with America’s largest such program offering free government phones serving over 20 million subscribers in 2019. Little attention has been paid to MSPs’ role in providing free government phones in digital inclusion research. So we investigated the impacts of one major wireless provider—Verizon’s free government phones—on digital inclusion. Our qualitative interviews suggested the following Verizon-specific program benefits and challenges reported: no down payment ever, higher fraud waste & abuse standard, around 15 to 100 free minutes a month, eligible participants could choose LG phones, and could switch from Lifeline free service to Verizon Wireless pay-as-you-go services at any time. Verizon-specific challenges include: no mandatory annual recertification and higher operation expenses—registration fee and multilingual free phone customer services.

4. Case Studies and Success Stories

This section will summarize individual accounts submitted to a variety of state and federal agencies over the years in support of the concept of free government cell phones. As noted above, Lifeline program reforms in 2007 specifically cite anecdotal information from the organizations “working hands-on with low-income applicants and recipients of Lifeline service.” While these initial examples are focused on concepts, later analyses will contain more anecdotal evidence gathered in the field, so to speak, as the program continues in enrollees and societal impact.

This report provides case studies and success stories from jurisdictions where governmentally sponsored “free” telephones, provided by Verizon Wireless through the Lifeline program, have had positive social, legal, or public safety impacts. Such success stories have been a real focus of the Lifeline industry over the years, and allocations of Lifeline support have been supported due to the broad impact that free government phones have; they literally change lives. It is the hope that, after examining the substantial work of community organizations, especially domestic violence behavioral and social service agencies, and the success of the Verizon-sponsored Free Wireless phones, the California Public Utilities Commission will recommit to the fact that the wireless carriers’ work benefits many people who truly need telecommunications services to fully participate in communities, and should once again fully appreciate the purpose and results surrounding Lifeline.

5. Policy Recommendations and Future Directions

Future study could focus on the adoption and adaptation of the MVNO business model, which is implemented with both the “reduced” service and usage per enrolled consumer. Other studies on the contributions of the wireless Lifeline service to digital inclusion could focus on the thirds that were distracted by their extra usage that resulted in termination or by their subscriber service card or usage extension. Future studies could operationalize the wireless prepaid phone service, and improve our understanding of the challenges to digital inclusion and the development of the wireless Lifeline service. We have provided a review of the approaches of the past studies of other official wireless Lifeline service resellers and the 30 theses on the digital inclusion and wireless Lifeline service, which could be used to inspire a new generation of research.

The overall findings do not strongly suggest that the Lifeline service is significantly narrowing the gap in the digital divide between underserved consumers and their counterparts who are not participating in the Lifeline program. However, the participation rate and the scope of the Lifeline service have continuously increased for more than ten years. Despite the highly competitive prepaid phone market, in 2008, when wireless phone penetration was high and penetration growth was low, the biggest Lifeline service resellers switched from the wireless to the wireline Lifeline service so that they could offer Lifeline-only-wireline providers both free wireless phone service and up to 1,000 minutes of free monthly long-distance/usage. Due to the improvement of both wireless phone services and substitutes, the difference between the wireless Lifeline service “free” package for the pooled consumer usage and the Lifeline “reduced” package likely resulted in a migration to the wireline Lifeline service.