Arkansas News Bureau

LITTLE ROCK — Telephone service providers make discounted rates available to low-income Arkansans but “free” service being touted in direct mail ads comes with a price, the state attorney general’s office warned today.

The office said it has received reports from Arkansas residents regarding ads offering free local and long-distance phone service. It reviewed direct mail ads from Melbourne, Fla.-based Bellerud Communications.

“The reality is that the consumer will be billed for both of these services if the consumer responds to this ad,” McDaniel said in a release. “There are legitimate discounted phone services available to low-income consumers, and these are available from all local service providers. An interested consumer should contact his local phone company rather than respond to a deceptive ad.”

The attorney general said the federal Universal Services Fund supports the Lifeline Assistance and Link-up America programs, which provide discounts on basic monthly service and initial installation and activation fees for the primary residence of eligible consumers. Both land lines and cell phones are covered.

The Lifeline Assistance program provides a discount of $10 on basic monthly service and the Link-Up program helps with initial installation fees for land line service and activation fees for cell service, according to McDaniel. An eligible consumer may also qualify for an interest-free loan to acquire necessary phone equipment, he said.

To qualify, a consumer’s household income must not exceed 135 percent of the federal poverty level. Recipients of Medicaid, food stamps, federal public house, Supplemental Security Income or other government assistance also may qualify for the phone discount programs.