Alleged Gov't Subsidy Fraud by Sprint Threatens Merger with T-Mobile

The FCC this week launched an investigation into allegations that Sprint collected federal subsidy payments for 885,000 subscribers that were not actively using Sprint service, violating a key rule of the Lifeline program for low-income consumers. If true, this would amount to Sprint collecting over $8 million/month of taxpayer money that it was not entitled to. FCC Chairman Ajit Pai announced the investigation yesterday. Today, FCC Commissioner Geoffrey Starks released a statement saying that the investigation “directly impacts our review of the proposed merger between Sprint and T-Mobile, one of the largest wireless transactions in FCC history. Given the enormity of the apparent wrongdoing committed here, we must pause our Commission review. … There is no credible way that the merger before us can proceed until this Lifeline investigation is resolved and responsible parties are held accountable.”

Source: Phone Scoop – Latest News

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