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."
Nov 7, 2019
T-Mobile today announced plans to offer three new programs offering 5G service for free to certain groups, or cheaply for everyone else. The company is promising to launch the programs when and if it is allowed to merge with Sprint.
May 27, 2020
This summer, Samsung will launch Samsung Money by SoFi, a new financial product integrated with Samsung Pay. Like Apple Card, Samsung Money can be used as a payment method with the wallet app (Samsung Pay), the account is managed within the wallet app, and the product also includes a physical payment card.
Oct 23, 2018
The FCC today proposed a fine of more than $63 million against American Broadband and Telecommunications Company for violating rules regarding the Lifeline program. The company, a wireless reseller based in Ohio, "improperly sought and received Lifeline funding by creating numerous ineligible Lifeline subscriber accounts."
Nov 4, 2020
T-Mobile and the FCC have agreed to settle an FCC investigation started in September 2019 alleging that Sprint defrauded the US government by collecting approximately $8 million per month in Lifeline subsidies for 885,000 ineligible accounts. Lifeline helps low-income consumers afford basic phone and internet service.