The high cost of smartphones, mobile data, and internet has created a major connectivity gap for low-income families. Various measures have been proposed over the years to increase access to basic communication services, but one of the most important programs is the Lifeline program, which provides eligible Americans with free or reduced-cost phone and internet service.
Financially Struggling Individuals Face a Major Connectivity Gap
According to an October 2024 Federal Reserve survey, more than a quarter of U.S. adults report struggling financially, indicating they were either “just getting by” or “finding it difficult to get by”.
Even an entry-level internet-enabled device can cost a large amount of the average monthly income for low- and middle-income families, and the cost can be even greater for the lowest-income populations. Also, the expense of repairing a broken or lost smartphone can be prohibitively expensive.
Pew Research Center released that 27% of adults in households earning less than $30,000 annually rely solely on a smartphone for online connection, lacking broadband connectivity at home.
Many low-income people cannot afford home broadband, making them “smartphone-dependent” internet users. They rely primarily on mobile data, which is frequently more expensive per gigabyte and has limited data caps, resulting in unreliable connectivity when caps are exceeded.
Affording consistent service is another challenge. Mobile service is constantly at risk of being disconnected due to the inability to pay. This absence of reliable connectivity can disrupt work, education, healthcare, and communication in emergencies.
Institutional obstacles further intensify the issue. Traditional mobile service plans are structured to cater to financially stable customers, frequently overlooking vulnerable groups.
Postpaid plans require good credit scores, resulting in individuals with limited or no credit history, or those with previous financial difficulties, being either denied or forced to pay high security deposits. Entering into a contract generally necessitates a stable address and official government identification, which may be unattainable for individuals experiencing homelessness or escaping domestic violence.
The consensus is evident: although mobile phone adoption is widespread worldwide, the combination of cost, reliability, and accessibility results in a substantial digital gap for low-income populations.
Government and Nonprofit Programs Provide Free Phones and Free SIM Cards
Among these initiatives, the Lifeline program stands out as the longest-running federal effort in the United States to make communication services more accessible. Though sometimes mistakenly called the “Obama phone” program, Lifeline actually began in 1985 under President Reagan and expanded to include mobile phones in 2008.
Lifeline works through participating mobile providers to offer discounted service and even a free device (e.g., free iPhone 11) to eligible subscribers.
Lifeline provides a monthly discount of up to $9.25 on phone or internet service. Participating carriers, including AirTalk Wireless, frequently offer a free phone with a free SIM card to newly approved customers. This enables low-income households to obtain vital connectivity services at no expense.
Eligibility for Lifeline is based on either household income or participation in federal assistance programs. Individuals qualify if their household income is at or below 135% of the Federal Poverty Guidelines, or if they or a household member participate in programs such as SNAP, Medicaid, SSI, Federal Public Housing Assistance (FPHA), or Veterans Pension and Survivors Benefits.
Typical Lifeline plans include fundamental features aimed at providing reliable connectivity. Subscribers receive a local phone number for communication, a data allowance for internet use, free talk and text for consistent communication; there is no credit check or contract, and in many instances, a free smartphone from participating providers.
Initially, registrants are required to verify their eligibility. Upon approval, they register with a participating Lifeline provider in their region to enroll in a plan that includes a phone offer along with monthly service.
In addition to federal programs, a variety of nonprofit organizations and local initiatives further assist low-income individuals in obtaining devices and connectivity.
Expanding Connectivity to Support Vulnerable Communities
In the U.S., government programs like the Lifeline program form the foundation of efforts to expand connectivity. The continued support and development of these programs are vital, not only to maintain current access but also to ensure the long-term viability of connectivity for households encountering financial obstacles.
Getting vital services, such as healthcare, education, and financial management, can be difficult for people who lack digital literacy. Initiatives that promote digital literacy, such as online lessons, community workshops, or mentorship programs, may have great societal and economic impacts.
