Obama Phones: Breaking the Myths, Reaching Out the Facts

Online, June 23, 2010 (Newswire.com) - The World Wide Web is full of rumors and wrong information about the term "Obama Phones." First off and to clear things up once and for all - there is no such thing as an "Obama Phone." The only thing similar between the term "Obama Phone" and the current American President is the first name, and the origin of this misconception is still unknown.

What is true is the fact that the Lifeline Assistance and Link-Up America programs have been around since 1984 when the "Universal Service Fund" was created under the Reagan administration. Also the Lifeline Assistance and Link-Up America programs (part of the "Universal Service Fund") has nothing to do with the "Stimulus Program" of 2009.

Another misconception is that the Universal Service Fund program is a tax paid by U.S. taxpayers. It is not. The Universal Service Fund program is funded from contributions by telecommunications carriers collected in part from the Universal Service Charge applicable to all forms of interstate telecommunication services. The concept of "Universal Service" as it applies to telecommunication services was actually started way back in 1934 by President Franklin Roosevelt way before World War II.

Companies like REACHOUT WIRELESS are simply offering this discount benefit to low income families and individuals via wireless services in place of older technologies like landline phone service. REACHOUT WIRELESS services include voicemail, text, three-way calling, call waiting, caller ID and access to 911. REACHOUT WIRELESS subscribers can purchase additional airtime and unused minutes will be rolled over to the next month as long as the subscriber remains active on the program. An applicant has to affirm under penalty of perjury that they are eligible to receive the benefit since they receive a form of government assistance, and Lifeline is available to only one member per household.