The Government said on Wednesday that T-Mobile US Inc has to pay $200 million to resolve an FCC investigation. The T-Mobile US Inc was facing allegations that it was unable to comply with rules on a low-income subsidy program about its Sprint unit.
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The Sprint received government subsidies under the Lifeline program for more than 1 million customers which did not receive the service.
T-Mobile said that he is happy over the settlement and the company look forward to delivering reliable and affordable network connectivity to itsconsumers.
The FCC started this investigation in 2019, before Sprint merger with T-Mobile. FCC said that Sprint accepted voluntary that due to a software glitch, the system failed to detect that over a million Lifeline subscribers nationwide had no coverage over an extended period of time.
Sprint has a total of 3 million customers and the company said that it potentially claimed Lifeline subsidies for subscribersthat Sprint otherwise would not have submitted under its policies and procedures. Both T-Mobile and Sprint also agree to enter into a compliance plan which would help them to follow the FCC rules.
FCC Chairman Ajit Pai said that this settlement will send a strong message to all telecom companies to comply with the set rules of the Lifeline programme.
The participating companies in the Lifeline program receive a $9.25 monthly subsidy per customer, which they mush pass to the customer. Most customers were not getting bills because the company made this service free. The FCC investigations proved that the companies intentionally were selling free Lifeline service, knowing they would get paid even if consumers did not use phones.
