Sprint probed over US low-income subsidies; shares slide 3.3per cent

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The Federal Communications Commission said Tuesday Sprint Corp received tens of millions of dollars in monthly government subsidies for 885,000 ...

WASHINGTON: Sprint Corp received tens of millions of dollars in government subsidies for 885,000 low-income subscribers who were not using the service, the Federal Communications Commission said on Tuesday.

The U.S. Justice Department approved the Sprint-T Mobile merger in July, but it faces a court challenge from 18 state attorneys general. A trial is set for Dec. 9 on that challenge. "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.

 

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