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Sprint took millions of dollars to subsidize telephone and Internet service for low-income consumers, even if those consumers were not using the service, according to the Federal Communications Commission. FCC President Ajit Pai called the measure "reckless disregard" for taxpayers and the commission's rules, and called on the law enforcement branch of the agency to conduct a thorough investigation.
"It is outrageous that a company is claiming millions of taxpayer dollars for doing nothing," Pai said.
The FCC Lifeline program provides a $ 9.25 monthly subsidy to low-income consumers, whether they have a telephone or broadband subscription. However, in 2016, under former FCC President Tom Wheeler, the commission added an essential limit to prevent misuse of funds: if customers do not use their service for 30 days, suppliers must start the process of removing the subsidy program.
Sprint has failed to do this for 885,000 subscribers, according to the FCC. That's about 30 percent of Sprint's Lifeline customers and nearly 10 percent of all Lifeline subscribers. The board does not indicate how long Sprint failed to remove customers from its roles.
One of Pai's first moves was to start reducing the Lifeline program. He criticized the program as being plagued by fraud and abuse; The Inspector General of the Commission stated that 18.5% of payments were irregular.
The 30-day rule is to prevent companies from registering subscribers who will not use their service, but to collect the $ 9.25 monthly subsidy anyway.
Sprint is merging with T-Mobile, which would allow T-Mobile to absorb the company. It has been approved federally and by the FCC, but still needs to be reviewed by a number of states.
The edge contacted Sprint for a comment.
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