SC Rejects Program Offering Free Cell Phones For Low-Income Families

Columbia, SC—Prepaid wireless provider TracFone is trying to bring a program to South Carolina that provides low-income families with free cell phones and free minutes every month, a program it calls SafeLink.

But unless something changes, that program will not be coming to the state because TracFone and the state Public Service Commission are at odds over the details.

The free cell phones and minutes are paid for out of the federal Universal Service Fund, which all telephone customers pay as part of their bill. The money is to make sure everyone has access to affordable communications, since it costs much more to run phone lines to rural areas and there are fewer customers, meaning service wouldn’t be affordable without the fund.

TracFone applied to offer the SafeLink program in South Carolina, using the federal Universal Service Fund (USF) to pay for it. But the state Public Service Commission requires any telephone company that wants to tap into the federal USF to agree to pay into the state USF. The commission’s directive says the other wireless carriers would be put at a competitive disadvantage if TracFone were not also required to contribute.

Dukes Scott, executive director of the state Office of Regulatory Staff, which represents the public in these kinds of cases, says the Public Service Commission has been very fair and isn’t trying to deny low-income families from being able to get free cellular service. “They made it clear, I think, in the directive, that if this company will abide by their orders, they would love to have them come in,“ he says.

But Jose Fuentes, Director of Government Relations for TracFone, says, “Many households in South Carolina that are low income don’t even know that this program exists. And all we wanted to do is, and we’ve been working with the Public Service Commission for five months now, is to try to provide this service and let people know that this service is available to them. But the Public Service Commission of South Carolina is continuing playing games.“

He says the PSC is playing games because TracFone is a prepaid cellular provider, so it’s different from other wireless carriers. Since it’s prepaid, customers don’t get a bill in the mail, so how can TracFone add the state Universal Service Fund charge to customers’ bills?

TracFone paid for a half-page ad in ‘The State’ newspaper, Monday, asking readers to call members of the Public Service Commission and “tell them that South Carolina needs SafeLink now”. But Public Service Commissioners are not allowed to talk about the case because it’s pending.

The commission is expected to issue its final order soon, after which TracFone can appeal.