FCC fines T-Mobile $200M over Sprint’s alleged abuse of low-income subsidies
T-Mobile was hit with a $200 million fine due to subsidies claimed by Sprint prior to the companies merging.
Josh Miller / CNET
US telecom giant T-Mobile will pay a $200 million fine as part of a settlement to resolve a probe into Sprint’s alleged abuses of a federal program aimed at low-income subscribers, the Federal Communications Commission announced Wednesday.
The settlement comes after an FCC audit found the Sprint, which merged with T-Mobile earlier this year, was claiming monthly subsidies for 885,000 customers as part of the federal Lifeline program, even though those subscribers weren’t using the service.
Lifeline directs $1.5 billion per year to help low-income families pay for phone service by giving out a $9.25-per-month subsidy. Originally intended to provide discounts on landlines, the program