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The initiative requires providers that they remove Lifeline subscribers who do not use their phone at least once every 30 days. As such, it is implied that Sprint knowingly defied the rules.
The findings stem from an investigation by the Oregon Public Utility Commission.
We asked Sprint to comment. It will not be surprising if the carrier reacts, however. The FCC effectively asserts that Sprint used a series of fraudulent Lifeline claims to clean up its finances. This is a serious and potentially fatal charge, while Sprint is still struggling to get rid of its union with T-Mobile. States participating in a merging trial are already convinced that Sprint is not honest about its intentions and that it will not help things.
Updated 9/24 13h50 ET: As you can imagine, Sprint has a different version of events. He indicated that an "error" had been made in July 2017 when the network had implemented the radical changes Lifeline put in place by the FCC in 2016. Sprint said it had "done so much". Proactive "to an investigation and raised the matter with the FCC, and had brought an independent reviewer to study the effectiveness of its changes. The company said it was "committed" to compensate governments for the claimed subsidies. You can read the full statement below.
"In 2016, the FCC approved radical changes to the Lifeline program, which forced Sprint to update its usage calculation and, therefore, eligibility of Lifeline customers." An error occurred during the implementation of these new requirements in July 2017.
"When the error was discovered, we immediately investigated and raised this issue proactively with the FCC and the relevant regulatory authorities. We also engaged an independent third party to review the results of our review and the effectiveness of our operational changes.
"Although not significant relative to Sprint's financial results, we are committed to reimbursing the federal and state governments for any grant payments collected as a result of the error.
"We are proud of the benefits we offer to eligible low-income earners through our low-cost wireless service and believe this program is valuable to underserved populations."
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