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Free Cell Phones from the Government Chip Away at Prepaid Mobile Phone Market

August 15, 2011

The free cell phones from the government program is exploding. In fact, it is growing so fast that it’s eating into the prepaid wireless phone business.

Prepaid cell phone vendors, Tracfone, MetroPCS and Leap Wireless all recently reported disappointing financial results for the second quarter, and the outlook for the third quarter was not bright. This came as a surprise to investors, as the prepaid mobile phone industry has been on fire.

Prepaid phone users are price conscious users — especially in these tough economic times — and it’s tough to beat an absolutely free phone given out through a government program. As a result, prepaid phone companies are losing customers.

Prepaid phones generally cater to the low-income segment of the market. They offer low-end phones on a fill’er up basis. The phone comes with a set number of minutes on them, and when they are used up, another bundle of minutes is purchased. This is a convenient system for the low-income consumer — if they don’t have the money, they don’t buy more minutes.

As you’d expect, prepaid phone users are a very price conscious crowd, looking for the best deal possible. And with no contract involved, they are free to toss one phone for another if the rates are more attractive. Imagine using a prepaid phone and then seeing the ad for an absolutely free cell phone. Out with the old and in with the new, free phone.

The free cell phones, paid for through the government’s Lifeline Assistance program, come with up to 250 minutes of free monthly minutes. So, what if a person needs more minutes? Most of the providers of these free phones will let you “buy up” to get more minutes. For example, fast-growing, Assurance Wireless will give you 500 minutes for $5 or 1,000 minutes and 1,000 text messages for $20. It’s tough for prepaid to compete.

In order to receive the free phone and minutes, you must qualify for the federal government’s Lifeline Assistance program. While the rules are slightly different in each state, you are generally eligible if you make less than 135% of the federal poverty level or if you already participate in many government assistance programs such as Medicaid, food stamps, housing assistance, SSI and others.

There are quite a few vendors who specialize in the Lifeline cell phone market, but there are three big ones that do the vast majority of business. These are, in order of market share, Safelink Wireless, Assurance Wireless and ReachOut Wireless. For complete information on the program, it’s vendors and state eligibility, please visit https://www.freegovernmentcellphones.net.

Tagged as: Assurance Wireless, prepaid, Reachout Wireless, Safelink Wireless

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Comments

  1. Sandra carteras says

    March 10, 2019 at 12:21 am

    I need a fone

    • Free Government Cell Phones says

      March 10, 2019 at 8:16 am

      Then you need to apply for a fone.

  2. Joe giovengo says

    December 28, 2018 at 5:09 pm

    I have qlink for my government phone. Their service stinks and the phone is terrible. Shuts off when in talking and overheats. I want to change carriers but I can’t seem to get anywhere with assurance and others. Can you recommend a carrier I can switch to either out a lot of red tape.

    • Free Government Cell Phones says

      December 29, 2018 at 7:00 am

      We don’t recommend one service provider over another because there are so many variables.

  3. Nicole l Solis says

    November 26, 2018 at 10:01 pm

    Hello please I would like few government cellphone I live on California thank you.

    • Free Government Cell Phones says

      November 26, 2018 at 10:46 pm

      You can’t enroll in the Lifeline program by leaving a comment here, Nicole, because this is an independent informational website. You must contact one of the companies that offer free government cell phones in your state. Here’s where you can find all those companies:

      https://www.freegovernmentcellphones.net/states

  4. Hugh says

    July 13, 2018 at 6:11 pm

    I’m on ssi. Is there any free government cell phone service that lets me keep my old number?

    • Free Government Cell Phones says

      July 13, 2018 at 7:07 pm

      Any cell service will let you keep your old number, Hugh. All you need to do is tell the new company’s customer service rep that “I want to port over my old phone number.”

  5. Eilene says

    August 1, 2017 at 6:58 am

    My husband is on total disability. And makes over the limit. Is he still able to get the free phone..

    • Free Government Cell Phones says

      August 1, 2017 at 2:20 pm

      He won’t be eligible based on income, Eileen, but he may be eligible if he participates in one of the government assistance programs. Here’s an article that tells you all the ways to qualify:

      https://www.freegovernmentcellphones.net/basics/qualify

  6. Luz Resto says

    November 23, 2016 at 11:10 am

    I do not want the cellphone because it does not work where I live,

    • Free Government Cell Phones says

      November 23, 2016 at 3:01 pm

      Contact your service provider and cancel your service. There’s no need to send the cell phone back.

  7. Renay Russell says

    November 22, 2016 at 4:00 pm

    Can I bring in the government phone I already have and up grade to a better one?

    • Free Government Cell Phones says

      November 22, 2016 at 6:03 pm

      It depends on the make and model and your service provider. But here’s an article with all the info you need regarding upgrades:

      https://www.freegovernmentcellphones.net/which-lifeline-cell-phone-companies-offer-smartphones

  8. Taylor muckenfuss says

    December 18, 2015 at 10:58 am

    I would like to apply for another one my phone want turn on an I really need a phone

  9. my name Ruthie Lewis says

    May 27, 2014 at 11:51 am

    I would like to apply for another phone The battery is dead on the one I have. I could not fine any pictures on line. I would like one with large print and screen.

    Thank You

  10. Saul Ramirez says

    April 22, 2014 at 3:10 pm

    No trabojo

  11. Saul Ramirez says

    April 22, 2014 at 3:09 pm

    No cell phone I have food stamps

  12. jesus sanchez says

    February 3, 2014 at 6:21 pm

    I need cell phone for my son school, for job,worker,and yes i do get food stamps,and AFDC

  13. trevorromero says

    July 21, 2013 at 1:26 pm

    I need a phone bad:(

  14. Glen Coleman says

    October 27, 2011 at 10:46 pm

    Hello, I am new to this site, and I have looked up free phone to join with. So how I have find this one. I hope to get contacted to be available with a grant of a Government free phone. Thank You 🙂

  15. Debbie says

    September 25, 2011 at 4:33 pm

    So glad illegal aliens qualify. I’d hate to think there was a tax payer provided benefit that don’t receive!

  16. belinda says

    September 22, 2011 at 1:30 pm

    hoe do i sign up

    • Glen Coleman says

      October 27, 2011 at 10:47 pm

      Don’t be rude, okay?

  17. Mary Wallington says

    September 1, 2011 at 7:51 pm

    I currently have an assurance wireless phone from Virgin Mobil. I was wondering if a differant phone is available. The buttons on the phone are much too small for my clumpsy fingers with arthritis and I find them hard to dial.

  18. James says

    August 30, 2011 at 2:35 pm

    when are the free goverment cell phones going to be available in the nekoosa wisconsin area?

    • James says

      November 6, 2011 at 10:06 pm

      well it is november and still no cell phones available in nekoosa

      • James says

        April 4, 2012 at 1:44 pm

        I am still looking and searching for a free cell phone profider in the area?

  19. princess says

    August 30, 2011 at 11:41 am

    my name is princess an i will really will like to have phone

  20. Vaiden Triplett says

    August 18, 2011 at 2:37 pm

    My phone screen is not showing and I can’t see my numbers on my phone or anything if you (yall) don’t mind I would like another phone. my cell number is 601-697-4941. Also when I ordered my phone I asked for free text messages and also minutes. Also my address is box 10110 rd. 145. thank you Vaiden Triplett

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