State Weighs Adding New Monthly Fee to Low-Income Phone Subsidy

The subsidy allows phone companies to extend baseline service to nearly a million low-income Georgians, mostly free-of-charge.  

Public Service Commissioner Tim Echols said the ease at which people can use the subsidy encourages abuse and fraud.  He said it should require some “skin in the game.”

“While it may be a little bit of an adjustment for people that are used to not paying for this, the $5 in the long run will preserve the program and teach more personal responsibility,” said Echols.

Public Service Commissioner Doug Everett, the sponsor of the fee proposal, said many people are getting a “luxury item” without understanding it costs money.

“Is it right for us to tell people that the economy’s bad but we want money out of your pocket to buy someone else free telephone service?” said Everett.

Most wireless providers that do business in the state have come out against the fee, arguing it would create a barrier to the safety net program.

Bobby Baker, a former public service commissioner who represents several of the phone companies, said any abuse referenced by commissioners has been wiped out by new ID verification requirements.

“Everyone in the program now has been confirmed and re-certified that they’re eligible and if there is fraud and duplication, 99.9 percent has been eliminated at this point.”

To be eligible for the subsidy, an individual must earn less than about $15,000 per year. Rules prohibit more than one subsidy per household. 

The Public Service Commission votes on the proposed monthly fee Tuesday.