Slim Pickings: World’s Richest Man Gets Richer Supplying ‘Obamaphones’ to Poor

Published October 10, 2012

A Mexican telecom mogul who holds the title of world's richest man, and one of President Obama's top donors are both getting even richer from the U.S. government program that supplies so-called "Obamaphones" to the poor.

Carlos Slim, who has an estimated net worth of $70 billion, owns a controlling stake in TracFone, which makes $10 per phone for each device it provides to poor Americans. The company, whose president and CEO is Frederick “F.J.” Pollak, also makes money from extra minutes and data plans it sells to subscribers who get phones and service through the government's Lifeline program. The program, which began in the mid-1980s, has exploded in the past four years after being expanded from supplying landlines to the poor to providing cellular phones.


“I’m not against a company making a profit. If they are making money off lifeline, the blame goes to the federal government for creating the program."
- Rep. Tim Griffin (R-AR)


The phones came into the national spotlight after a viral video surfaced on YouTube in which a Cleveland, Ohio, woman praised the president, saying he needed to be re-elected because he gives out free phones.

“Everybody in Cleveland, every minority, got an Obama phone. Keep Obama as president. He gave us a phone. He gonna do more,” the woman said in the video.

Slim’s Movil America owns TracFone and recently snapped up service provider Simple Mobile for $100 million. TracFones and Simple Mobile service are huge players in the Lifeline program through the company's “SafeLink Wireless” brand. TracFone had 3.8 million subscribers through the federal program as of late 2011.

Pollak has donated at least $156,500 to Democratic candidates and committees this cycle, including at least $50,000 to the Obama campaign. His wife, Abigail, is a campaign bundler for Obama and has raised more than $632,000 for the president this cycle, and more than $1.5 million since 2007. She has personally contributed more than $200,000 to Democratic candidates and committees since 2008.

The Pollaks hosted Obama at their Miami Beach home in June for a $40,000-per-plate fundraising dinner, and hosted a similar event with Michelle Obama in July 2008. The couple personally donated a combined $66,200 to Obama’s re-election effort that year.

U.S. Rep. Tim Griffin, (R-Ark.), who has been one of the biggest critics of the Lifeline program's explosive growth, said he can't blame Slim for doing lucrative business with the federal government.

“I’m not against a company making a profit," Griffin said. "If they are making money off the program, the blame goes to the federal government for creating the program."

Griffin recently introduced a bill on Capitol Hill to end the Lifeline program, which cost $1.6 billion in 2011, up from $772 million in 2008. While not technically a tax, the program is funded by mandatory fees tacked on to consumers' phone bills, then disbursed through the Federal Communications Commission and states.

“This program is rife with waste and abuse," Griffin said. "It’s set up in a way where people can receive multiple phones for free.”

Griffin said he has seen cases in which single individuals obtained dozens of the phones, and said under the lax requirements, more than 80 million Americans are eligible.

According to the FCC, “Lifeline is a government benefit program supported by the Universal Service Fund that provides a discount on phone service for qualifying low-income consumers. Lifeline helps ensure that eligible consumers have the opportunities and security that phone service brings, including being able to connect to jobs, family, and emergency services.”

The FCC announced in July that new reforms saved $43 million in savings by eliminating duplicate subscriptions and outdated subsidies and claims that the agency is on track to recover $200 million for the year.

But Griffin said it's time to end a subsidy that gives the poor a luxury item and makes the world's wealthiest man richer.

“I simply do not think that the taxpayers should be footing the bill for someone’s cell service and social interaction,” Griffin said. "If that’s the case, what should the government pay for and not pay for? Let’s just start paying for everyone’s gas.”


Film at 11.... 🤦

No matter what you say they say the opposite !

GANAR!

Retards....

Once again, for the people in the back of the shortbus:

1 - Lifeline does NOT provide a cell phone. Lifeline only provides a credit towards either a landline or wireless telephone bill. The average credit is $9 (this would hardly pay for a wireless service).

2 - SAFELINK, which is a program that actually GIVES lazy poor people a phone AND gives lazy poor people minutes (this is most likely what the individual is profiting from) was started by BUSH.

Idiots.

"Griffin recently introduced a bill on Capitol Hill to end the Lifeline program, which cost $1.6 billion in 2011, up from $772 million in 2008."


why are you ignoring this..?? Do you believe this program was intended to be abused like this..??

No. You blamed Reagan last time.


more moving goal line shinnanigans Victor?






The truth doesn't matter when leaches believe it and vote fo him to get thems a Obama iphone!

[-x 😳 😳

I don't even think the program should be in place (in any format). I don't particularly care if people can't call emergency services in an emergency. Bottom line is that none of the programs have anything to do with obama. The fee schedules were set in place prior to him and will continue until someone gets rid of them.

the "cost" isn't even a cost. There's a % fee tacked on to your phone bill. This money then is disbursed (and wasted) through the lifelink program. The size of the program is going to increase as you pay more in phone bills.

Nope. Reagan started lifeline. No one had cell phones then. Clinton allowed the money received to be applied to a wireless bill (this is a perfectly logical change, considering no one has landlines any longer). However, none of this has to do with actually receiving a cellphone.

For receiving a cellphone, you have to look at the Safelink program. That was started by Bush.

And the truth ALWAYS matters.

Want me to stop calling you an idiot, then stop acting like one.

Address the fact that people are on the street proclaiming Obama God because he gave them a free phone... I don't see him out there correcting them do you..??



Clopper...

that's not what this poorly written article is about. You (through posting this article) are suggesting that obama is in some way involved in this, and that this is because one of his supporters happens to own a phone which is being supplied by this program.

Obama didn't start this program. Obama hasn't said a damn thing about phones, nor does that seem to be a major concern of his. Bush, Reagan and in a small part Clinton, are the ones you need to blame for the existence of this program. Therefore, it's a poorly written article which is trying to make a poorly supported case. The fact that you are supporting it makes you an idiot.

I don't need to address a damn thing about street people. They aren't the premise of the article.

looking back I think you're the one that got all Obama defensive and stuff... the article itself is really more about some dude getting richer everyday off this program that also seems to be a heavy Obama campain contributor... but you go ahead and just read the parts you already know about...

holy shlt, that has gotta to be the funniest thing ive ever seen. the parodies are even better.

Yeah. The article isn't trying to tie obama to Lifeline at all... nope. Wouldn't even think of it... hell, the title doesn't even have obama in it. And since obama isn't expanding or promoting the program, it's definitely relevant to point out his political contributions. Because that's important.

The only important things in this article are the existence of the program and the names of any congressmen actively promoting or actively fighting the program and their relationship to the owner of tracphone.

If you can't understand that simple concept then i fail to see how anything you post could ever be relevant.

Ok Batman, acticle aside, this whole topic was brought to our attention because some of the 'poor' are clearly taking advantage of this program and giving credit to Obama... whether or not he started this program is not the point... enrollment and cost has more than doubled in tthe past few years and he's riding the wave... that's the point... disect and defend him all you want.....

Tell that to obama!

Momma says, Obama is the devil.











LoL, love that stupid movie. You can do it!

that was a good movie...... 🤣

I heard Victor protested it tho... somethn about keeping the little man down or somethin... I dunno.. [melow]