T-Mobile US has agreed to pay the FCC a fine of USD 200 million after an investigation found Sprint was claiming federal subsidies for low-income households without providing the associated mobile services. T-Mobile assumes liability for the case following its takeover of Sprint earlier this year.
The investigation was first launched by the Oregon Public Utility Commission and the findings were confirmed by the FCC. Sprint claimed the state support for 885,000 subscribers under the federal Lifeline programme, even though those people were not using the service. In addition to paying the fine, the company agreed to a compliance programme to ensure it adheres to the Lifeline rules in future.
Providers participating in the programme receive a USD 9.25 monthly subsidy for most Lifeline subscribers, which they must pass along to consumers as a discount. For most mobile Lifeline consumers served by Sprint and many other providers, the subsidy makes the service free to the consumer.
The programme requires the customer to use the service at least once evet 30 days. If they do not after a warning with 15 days' notice, the subsidy may no longer be claimed. Sprint provides Lifeline mobile service under the Assurance Wireless brand to millions of low-income households nationwide.
