US: FCC accuses Sprint of improperly collecting subsidies

The Federal Communications Commission says Sprint is defrauding its Lifeline program, which subsidizes phone and broadband service for the poor. The agency has accused the wireless carrier of claiming subsidies for 885,000 Lifeline subscribers who were not using the service, reported Bloomberg.

The FCC said in a press release Tuesday that this is a violation of a key rule, designed to prevent waste, fraud and abuse in the Lifeline program — and FCC Chairman Ajit Pai has made a priority of fighting those problems. The 885,000 subscribers represent nearly 30% of Sprint’s subscribers receiving the subsidy and account for nearly 10% of all Lifeline subscribers, the agency said.

“Lifeline is an important component of our efforts to bring digital opportunity to low-income Americans,” Pai said in a statement. “It’s outrageous that a company would claim millions of taxpayer dollars for doing nothing.  This shows a careless disregard for program rules and American taxpayers.”

Full Content: Bloomberg

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