Assurance Wireless Free phone service Scam? Internet, Illinois

this is a company that offers 250 free minutes each month for local and domestic long distance calling plus a free phone. One must qualify for this phone by low income or medicaid. Once approved, they send you an acceptance letter letting you know when your phone shall arrive.  In my case, i received my letter dated 8/3/11 saying i have been approved for there service and i should receive this phone in 5 business days.  I have never received this phone!!! A phone call to the company and trying to talk to someone who can speak english and have a good connection in order to understand and hear them, is almost impossible.  I moved from one address to another and i gave them this new information of my new address.  They sent the phone to the old address as to what was on the application.  on 8/29/11, i mailed them a PROOF of new address as requested by them to there home address in Illinois.   Still no phone as of this date.  Again i called there 888-321-5880 number as of today and i got ahold of a SUPERVISOR and tried to explain my problem to her. I really could never understand her at all due to a very poor connection and her english.  She asked for all of the information on my approval letter of which i gave her and i think she said if i heard her right, my application was still being checked on for an approval.  I told her many times that i had all received an approval letter, BUT NO PHONE.  To make a long story short,  i hung up on them.  So i really have no idea as of this date if this is indeed a REAL company doing business or not or if it is a SCAM??? To receive this letter, a 12 digit Assurance wireless key number and an Assurance wireless phone number, it looks like the real thing.  BEWARE of this company offering FREE service as i have gotten no where with them.