FCC says Sprint claimed millions of dollars in federal subsidies it wasn't eligible for
Washington (CNN Business)Sprint, the nation's fourth-biggest wireless carrier, may have wrongfully made millions of dollars from a federal subsidy program designed to make cellphone and Internet service more affordable for low-income Americans, according to the Federal Communications Commission.
The company, which is currently seeking the FCC's permission to merge with T-Mobile (TMUS), claimed monthly credits for as many as 885,000 customers under the US government's Lifeline program. But Sprint was ineligible to claim the federal funds, the FCC said, because it failed to report that the customers were not actually using the subsidized service.
In a statement Tuesday, Sprint (S) said the issue stemmed from an error in the systems used to calculate customer eligibility for Lifeline. The company blamed the error on regulatory changes to the Lifeline program in 2016.
"When the error was discovered, we immediately investigated and proactively raised this issue with the FCC and appropriate state regulators," Sprint said. "We also engaged an independent third party to review the results of our review and the effectiveness of our operational changes."
https://www.cnn.com/2019/09/24/tech/sprint-lifeline-fcc/index.html