Lifeline is a government subsidy program that subsidizes phone and broadband service for families that qualify. The government pays the provider approximately $9.25 a month per user. TracFone currently has roughly 1.7 million Lifeline customers and, as we know, could soon be part of Verizon – pending government approvals. And, while Verizon has said it will continue the program, there is no legal obligation to do so.
Analysts have suggested that Verizon COULD end their participation in the Lifeline program. Verizon has argued, in the past, that the government’s approach to affordable internet is inefficient, and has suggested alternatives to the current program.
We think that if Verizon were to stop their participation (post-merger) another carrier would surely (and gladly) pickup their part of it.
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