WASHINGTON: The Federal Communications Commission said Tuesday Sprint Corp received tens of millions of dollars in monthly government subsidies for 885,000 low-income subscribers who were not using the service and said its Enforcement Bureau is investigating.
Sprint said it is"committed to reimbursing federal and state governments for any subsidy payments that were collected" improperly, but added that the payments would be"immaterial to Sprint’s financial results." The company added that it has"engaged an independent third party to review the results of our review and the effectiveness of our operational changes."The FCC said Sprint’s"apparent disregard of the non-usage rule" initially came to light following an investigation by the Oregon Public Utility Commission.
"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," FCC Chairman Ajit Pai said in a statement on Tuesday.
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