Sprint Took FCC Cash For 'Serving' 885,000 People It Wasn't Actually Serving (arstechnica.com) 46
Sprint has admitted the mistake and said it will pay the money back. Like the FCC's other universal service programs, Lifeline is paid for by Americans through fees imposed on phone bills. The FCC said Sprint's violation "initially came to light as a result of an investigation by the Oregon Public Utility Commission." Because of that investigation, the FCC said it "has learned that Sprint Corp. claimed monthly subsidies for serving approximately 885,000 Lifeline subscribers, even though those subscribers were not using the service." The 885,000 subscribers that Sprint wasn't actually serving "represent nearly 30% of Sprint's Lifeline subscriber base and nearly 10% of the entire Lifeline program's subscriber base," the FCC said. The FCC didn't say exactly how much money Sprint received through its violation of the non-usage rule, but one month's worth of $9.25 payments for 885,000 subscribers would amount to $8.2 million.