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Sunday, January 24, 2021

T-Mobile Will Pay $200 Million Fine to Resolve FCC Subsidy Probe

The Trump administration announced on Wednesday that T-Mobile US will pay a $200 million penalty in order to resolve a Federal Communications Commission investigation into the company’s Sprint unit over allegations that it failed to comply with rules on a low-income subsidy program.

The Trump administration announced on Wednesday that T-Mobile US will pay a $200 million penalty in order to resolve a Federal Communications Commission investigation into the company’s Sprint unit over allegations that it failed to comply with rules on a low-income subsidy program.

The FCC settlement pointed out that Sprint may have received government subsidies for over 1 million customers that didn’t receive service under the Lifeline program.

In a statement, the company said it was glad the issue it inherited “is now resolved. We look forward to continuing to deliver reliable and affordable network connectivity to consumers.”

The FCC also explained that Sprint’s voluntary disclosure said “due to a software programming issue, its systems failed to detect that over a million Lifeline subscribers nationwide lacked usage over an extended period of time.” That represented about a third of Sprint’s more than 3 million Lifeline customers.

Sprint also disclosed “it potentially claimed Lifeline subsidies for subscribers that Sprint otherwise would not have submitted… under its policies and procedures.”

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