Free. Wireless. Service. Did you think there was any such thing? The wireless industry is one of the largest and most lucrative in the world Competition is fierce. Of the four major wireless carriers in the United States, Sprint is third after Verizon and AT&T, with T-Mobile bringing up the rear. The companies have held those positions for some time now, and it’s not likely to change anytime soon. That isn’t to say it never will, it just won’t happen overnight. But as Sprint and T-Mobile get more creative and innovative, and continue to outdo the top two carriers, they stand a good chance of eventually growing to be at least on par with Verizon and AT&T, if not surpassing them. Sprint has already launched its 4G network, and a 4G phone to go with it, while the two industry leaders are still building their networks. And T-Mobile has decided to stick with 3G, albeit a souped up, super-fast version that is competitive with 4G speeds and features. Even US Celluar, a small regional carrier focused on the central states, sometimes outdoes the major carriers through superior customer service, like offering a free navigation application. And now, as far as philanthropy goes, Sprint has pulled into the lead by offering free wireless service to certain customers in nine states.
Sprint is the parent company of four prepaid wireless brands—Virgin Mobile USA, Boost Mobile, Common Cents Wireless (which is available exclusively through Walmart stores), and its newest venture, Assurance Wireless. Launched in December 2009, Assurance Wireless is a program to put cell phones into the hands of low income customers who meet certain qualifications.
Cell phones are no longer just luxury items. They allow parents to keep tabs on and stay in touch with their children. They come in handy in the events of car accidents or other tragedies so those involved can reach police and rescue personnel. With landlines now being, for the most part, more expensive than wireless service, a cell phone can help someone keep in touch with family, or allow them to receive calls about job interviews or other important information. Cell phones are, in this day and age, necessities.
Still, many people cannot afford them. People continue to lose jobs every day despite news that the country’s economy is recovering. And some people just don’t make enough money from their job, or even more than one job, to have a cell phone as well as pay all their bills and put food on the table.
Virgin Mobile USA started Assurance Wireless in New York, and later expanded into eight other states, most recently Florida. Customers must meet eligibility requirements, such as being enrolled in an assistance program like Medicaid or Food Stamps. Or, the customer’s household income must be below federal poverty guidelines, which vary from state to state. Eligible customers receive a free, basic cell phone, with 200 free minutes per month for nationwide calling. The plan also includes free voicemail, caller ID, and call waiting, as well as 911 access. If they can afford it, customers may also add features to their account, such as additional minutes and text messaging.
It’s not straight out charity. In order to fund the program, Sprint receives a subsidy for each Assurance Wireless customer. The subsidy is provided by the Universal Service Fund, which is a federal charge included in every cell phone customer’s bill. So yes, it’s still about business, but it’s good business.
Sprint plans to continue expanding Assurance Wireless to more states in the coming months. If you know someone who needs a cell phone but can’t afford one, tell them to check whether they’re eligible.
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