Lifeline Subsidies a Significant Benefit According to Study

In a study titled “Subsidized Cell Phones Provide Significant Economic Gains for Poor and Near-Poor Americans,” Nicholas P. Sullivan, a fellow at the Center for Emerging Market Enterprises at the Fletcher School (Tufts University), investigates the economic impact a Lifeline-subsidized wireless phone has in the lives of low-income subscribers.  The study concludes that subsidized cell phones are a significant economic tool for around half of subscribers, generating an average of $259 per year.  In many high-population areas, this economic benefit exceeds the cost of Lifeline subsidies, meaning that the Lifeline program is paying for itself, even without taking other social and connectivity benefits into account.