A regular communist--I mean, columnist--for the Toronto Star, Canada's largest daily newspaper, asks in an op/ed: "Is a cellphone a basic human right?"  Shockingly, her answer is... yes!
She's green with envy that, for once, the U.S. has out-socialism-ed Canada (the land of polite, democratic socialism) with SafeLink Wireless, "a program that provides eligible people with a free cellphone and 68 minutes a month of free airtime for the period of one year. It includes texting, voicemail, call waiting and caller ID."
SafeLink was the brainchild of Miami-based TracFone Wireless Inc., the largest prepaid cellphone company in the U.S. As a purely prepaid provider, TracFone has always aimed at the market's lower end.
"A telephone service, just in general, is not a privilege, it's a right, and we feel it's a corporate responsibility to provide it," says José Fuentes, TracFone's director of government relations. "Everyone should be in contact, should have the opportunity to get a phone call, especially if it's an employer."
Someone might want to tell the saintly José that his company isn't offering SafeLink out of the goodness of their collective, corporate heart, or because they feel a moral obligation to do so.  Nope, they're sucking at the teet of the FCC's great hidden welfare fund:
SafeLink is subsidized by the FCC's Universal Service Fund, which requires all phone companies - or their customers, if they pass it on to them - to contribute via a monthly $1.25 to $1.50 addition to their bill, like the new 25-cent 911 fee in Canada. The fund reimburses TracFone $10 of the $13.50-per-user monthly cost.
I'd bet good money that SafeLink will make a lot more than $3.50 per user each monthly by sellingadditional airtime.
One might think that subsidizing cell phone service is good public policy.  Indeed, direct subsidies probably do less to distort the market than, say, requiring private companies to cross-subsidize free service for some users at the expense of others.  But, please, if you're going add to my cell phone bill for your pet welfare projects, spare me the sanctimonious nonsense about cell phone service being a "right" like, say, life, liberty or the pursuit of happiness.Â