There was a shocking development in the Lifeline Assistance business this week — Budget Mobile, which we rank as the fourth largest provider of free government cell phones, abruptly announced that it is exiting the program.
Google’s search cache shows that Budget was still enrolling customers just a few days ago, but then the following notice appeared on the company’s website this week:
Important notice regarding a change to your wireless service
Please be advised that Budget Mobile is seeking to relinquish its authority as an eligible telecommunication carrier (ETC) for Lifeline wireless service. Budget Mobile will no longer be providing wireless Lifeline service. If you are an existing customer with Budget Mobile, you will be required to seek wireless telephone service with another local provider.
In an effort to help with this transition of service, you may access the appropriate state specific page for links and information regarding your state’s Lifeline program. In addition, you may access the Universal Service Administrative Company (USAC) link to see a list of local telephone service providers in your area. This link will help you determine which telephone company is the best fit for your needs. For a list of companies in your state go to http://www.lifelinesupport.org/ls/companies/companies.aspx, or call USAC at 1-888-641-8722 and press 1 for additional assistance.
Budget Mobile would like to take this opportunity to express our gratitude for the many years of being able to provide wireless phone services. If you have any questions or concerns regarding the change to your wireless telephone account, you can call Budget Mobile at 1-888-777-4007 and speak to a Customer Service Representative. We will be happy to answer any questions you may have.
Wow. Just wow. What a shocking development.
In our 2016 List of Leaders article, we ranked Budget as the fourth largest Lifeline company with more than 800,000 customers (our estimates based on official USAC subsidy figures).
What happens to Budget’s customers?
And it appears that Budget is leaving its customers in the lurch in more ways than one. Not only is the company cutting off their free government cell phone service (at some as yet unspecified date), but they are doing virtually nothing to help those customers find replacement service providers. As you may have noticed over the years, we were never fans of ReachOut Wireless, but when it went out of business it had the decency to refer its customers to specific service providers.
Budget, on the other hand, is doing almost nothing to help its customers. As you can see in the above block quote, they are being told to visit the USAC website to find a list of Lifeline companies in their states. We know from long experience working with the USAC website that its listings are a hodgepodge in which large national companies that provide free phones are freely mixed with large national companies and tiny companies that provide discounts only. In our opinion, the USAC listings are so broad that they are virtually worthless.
Luckily, FreeGovernmentCellPhones.net is riding to the rescue. Budget customers who are unexpectedly losing their service can always check our “States” page to find a succinct list of all the Lifeline companies in their states.
We make it simple for you to find those companies, check all their plans to find the one that’s best for your needs (the most minutes, most texts, most data, best smartphones, etc) and all the contact info you need to enroll with a new company.
It’s what we’re here for.
A rough year in the free government cell phone business
Our 2016 List of Leaders article has been turned topsy turvy in the last twelve months, and the Budget story is just the latest upheaval.
- Number 5 ReachOut Wireless exited the business.
- The news that Assurance Wireless, number 2 on our List of Leaders, saw its income decline by 21% year-over-year and then announced that it was merging with Number 3 Access Wireless.
- Number 12 Care Wireless exited the business.
- Number 14 Alaska Communications exited the business.
- Number 11 and Number 15, TerraCom and YourTel, merged into a single entity.
- TotalCall Mobile, busted by the FCC and fined millions of dollars, closed up shop and sold its customer list to enTouch Wireless.
What does all this mean for free government cell phone customers? It means far less competition and far less choice.
And that’s never good for consumers.
Grace says
I have tried since May to get my account # but no live agents. You need your account# to keep the same number. They have been calling for us to find new service, but it is a recording. Budget Mobile 1st said it would end on July 5th, 2017, then changed it to Aug 15, 2017, which is today.
Free Government Cell Phones says
Read this article, Grace. It will tell you how to switch companies when your company goes out of business (as Budget did).
https://www.freegovernmentcellphones.net/faq/how-do-i-switch-lifeline-providers
Marcia King says
My name is Marcia king and I can’t get another phone due to budget mobile has to take me off ur services. What do I do??????? I have no phone and tried to call the number and no one would answer me.
Free Government Cell Phones says
You, like many other former Budget customers, have been left in the lurch. In order to be eligible to enroll with another Lifeline free government cell phone company, you will need to apply for an exemption from the “port freeze rule” from the National Lifeline Assistance Database.
Visit the NLAD website and click on “Dispute Resolution.” You will be walked through all the steps to see if you qualify for a port freeze exemption. And we’re about 99.9% sure that you do qualify. Here’s a link to the NLAD website:
http://www.usac.org/li/tools/nlad/
Jessie says
I’m in the same situation
Free Government Cell Phones says
Same answer we gave Marcia.
kathryn michelle fry says
Please call me at 580-483-****. I need a new government phone but don’t have the budget mobile cancellation letter and I’m not able to check my email
Free Government Cell Phones says
Due to the volume of comments and questions we get every day, Kathryn, we can’t possibly respond individually to all of them. But we can give you a link to this article that tells you what to do to switch service providers:
https://www.freegovernmentcellphones.net/faq/how-do-i-switch-lifeline-providers
Rosalind Gailey says
I have a government cell phone which was through budget. When I attempted, upon learning of their closing, to obtain another provider the representative informed me that I was still in the database as having Budget as a provider and that they cannot do anything until I was purged from their system. I don’t know what to do now. This was 7/20/17 and they closed in April I assume.
Free Government Cell Phones says
You qualify for an exception to the USAC’s 60 day rule, because, in the USAC’s own words, “Current Lifeline service provider ceases operations or otherwise fails to provide service.”
That means “Lifeline subscribers may cancel service and receive a new Lifeline-supported service with another provider until the end of the original 12-month period. In these circumstances, the subscriber is not required to re-verify eligibility until the end of the original 12-month period. Requests for exception are reviewed on a case by case basis by USAC.”
Here’s a link to the USAC, where you can apply for the exception:
http://www.usac.org/default.aspx
Karen Turner says
So I have been trying to get a phone for over 5 months from budget mobile. I had tried to cancel my service with them but without luck. I gave up and called them again and tried to get service with them again but have still yet to get even a solid approval. Yet they have me locked down to where I can not get any other service for a set amount of time. I can not figure out how to get out from under this lockdown I have never been given a phone number. Therefor I STILL have no phone. How do I get out of the lock? How do I get away from budget mobile so that I can get a different service now that budget is closing its service?
Free Government Cell Phones says
That’s crazy, because Budget isn’t in the free government cell phone anymore and isn’t taking any new customers. Contact a different company offering Lifeline in your state, Karen, and explain the situation. Here’s where you can find a list of those service providers in your state:
https://www.freegovernmentcellphones.net/states
Sheryl Morehouse says
Budget mobile has also put a port block on people’s accounts so they can’t get another government phone. Some people are blocked until August(like me), while others are blocked until December. I’ve heard that this is illegal.
Free Government Cell Phones says
Budget left the free government cell phone business in May, Sheryl. Have you contacted another service provider to ask about taking over your service? Give it a try. Here’s where you can find a list of all the free government cell phone companies in your state:
https://www.freegovernmentcellphones.net/states
Karen Turner says
I am also locked down by their service. Is there no way around the lockdown?
Free Government Cell Phones says
This “should” be as simple as explaining the situation to a customer service supervisor at another Lifeline company. We hope it is. Please let us know what another company tells you.