FCC says Sprint falsely claimed Lifeline subsidies for 885,000 customers

guest · Sep 24, 2019

FCC says Sprint falsely claimed Lifeline subsidies for 885,000 customers
The subscribers weren't actually using the service
September 24, 2019
https://www.engadget.com/2019/09/24/fcc-says-sprint-made-false-lifeline-claims/

The Ajit Pai-era FCC has been determined to crack down on Lifeline program abuse from the outset, and now it's leveling some particularly serious allegations. Regulators have accused Sprint of claiming monthly subsidies in the low-income communications program for 885,000 customers that weren't using it.
That represents just shy of 30 percent of Sprint's Lifeline customers, almost 10 percent of the whole Lifeline base and "tens of millions" of dollars in wasted funding, the FCC said.

The initiative requires providers to remove Lifeline subscribers who don't use their phones at least once every 30 days. As such, it's implied that Sprint knowingly defied the rules.
The FCC is effectively asserting that Sprint used a raft of fraudulent Lifeline claims to pad its finances. That's a serious charge [...]
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Update 9/24 1:50PM ET: As you might imagine, Sprint has a different version of events. It said there was an "error" made in July 2017 when the network implemented sweeping Lifeline changes the FCC instituted in 2016. Sprint said it "proactively" investigated and raised the issue with the FCC, and brought an independent reviewer to study the effectiveness of its changes. The company said it was "committed" to compensating governments for the claimed subsidies. You can read the full statement below. [...]
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FCC: Sprint Received Lifeline Subsidies for 885,000 Inactive Subscribers

guest · Nov 4, 2020

T-Mobile will pay $200 million to settle Sprint's alleged Lifeline abuse
The carrier also has to abide by certain rules
November 4, 2020
https://www.engadget.com/t-mobile-settlement-with-fcc-over-sprint-lifeline-160839454.html

T-Mobile is paying the price for the reported misdeeds of its recent acquisition. The carrier has agreed to pay a $200 million settlement over FCC allegations Sprint abused the Lifeline program for low-income communications, claiming subsidies for 885,000 customers that weren’t using the initiative.

The agreement also requires that T-Mobile honor the rules of a consent decree.The provider has to reform company procedures and training to ensure that it only makes legitimate Lifeline claims.
A senior manager has to ensure T-Mobile complies with the order, and the company has to submit periodic reports for three years after the start of the decree.
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The settlement is ultimately small and won’t significantly affect T-Mobile’s future. It might serve as a warning to carriers, however, if just to ensure they double-check that they’re making claims for customers who genuinely ask for help.
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FCC: FCC Reaches $200 Million Settlement in Sprint Lifeline Investigation

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FCC says Sprint falsely claimed Lifeline subsidies for 885,000 customers

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