Abuse tarnishes free cellphone program

Associated Press

DAYTON

A newspaper investigation shows that tens of thousands of Ohioans are taking advantage of a federal program to provide low-income households with free cellphones by signing up with multiple companies.

The Dayton Daily News investigation found that companies’ heavy promotion of the free phone plan has caused its rapid growth and it is so often abused that 26,500 Ohioans in November have been sent letters notifying them that they are violating the rules.

Federally mandated fees tacked on to most cell- and home-phone bills pay for the free phone program and are often listed as the Universal Service fee. Those fees go back to the companies providing the free phones, which get up to $10 per month for each person who signs up.

The 26,500 people found to be in violation represent about 5 percent of all of the Ohio subscribers. The program has given phones to 600,000 Ohioans.