Consumers Cautioned About 'Free' Phone Service

When Arkansas consumers started receiving direct mail telling them they could get free local telephone and long distance service, many were rightly skeptical.

After conducting an investigation, the Arkansas Attorney General's Office issued a consumer alert, warning of these deceptive advertisements and explaining that discounted, but not free, phone service is available to low-income Arkansas consumers.

“The advertisements we have seen purport to offer free local phone service and even free long distance service, but the reality is that the consumer will be billed for both of these services if the consumer responds to this ad," said

Arkansas Attorney General Dustin McDaniel. "There are legitimate discounted phone services available to low-income consumers, and these are available from all local service providers. An interested consumer should contact his local phone company rather than respond to a deceptive ad."

The federal Universal Services Fund supports the Lifeline Assistance and Link-up America programs. These programs provide discounts on basic monthly service and initial installation and activation fees for the primary residence of eligible consumers. Both land lines and cell phones are covered.

The Lifeline Assistance program provides a discount of $10 on basic monthly service and the Link-Up program helps with initial installation fees for land line service and activation fees for cell service. An eligible consumer may also qualify for an interest-free loan to acquire necessary phone equipment.

To qualify for the Lifeline and/or Link-Up programs, consumers must not have a household income above 135% of the Federal Poverty Guidelines or they must participate in one of the following programs:

• Medicaid;

• Food Stamps;

• Supplemental Security Income (SSI);

• Federal Public Housing Assistance (Section 8);

• Low-Income Home Energy Assistance Program (LIHEAP);

• Temporary Assistance to Needy Families (TANF); or

• The National School Lunch Programs Free Lunch Program.

To determine your eligibility for the Lifeline Program, contact your phone company or state Public Service Commission.

"It is vital that all Arkansas residents have the opportunity to access telephone service," McDaniel said. "Parents need to be able to communicate with a child's school, and everyone needs a phone in order to fully access law enforcement, public safety, and other public services. I urge low-income Arkansas consumers to take advantage of these discounted services."

For information on applying for Lifeline and/or Link-Up, visitonlineor call the Universal Service Administrative Company toll-free at (888) 641-8722.