Get All Access for $5/mo

T-Mobile Will Pay $200 Million to Settle Sprint's Alleged Lifeline abuse The carrier also has to abide by certain rules.

By Jon Fingas

This story originally appeared on Engadget

Alex Tai | SOPA Images | LightRocket | Getty Images via Engadget

T-Mobile is paying the price for the reported misdeeds of its recent acquisition. The carrier has agreed to pay a $200 million settlement over FCC allegations Sprint abused the Lifeline program for low-income communications, claiming subsidies for 885,000 customers that weren't using the initiative.

The agreement also requires that T-Mobile honor the rules of a consent decree.The provider has to reform company procedures and training to ensure that it only makes legitimate Lifeline claims. A senior manager has to ensure T-Mobile complies with the order, and the company has to submit periodic reports for three years after the start of the decree.

We've asked T-Mobile for comment.

Sprint previously denied any deliberate abuse. It contended that it made an "error" in 2017 when implementing FCC-related changes. The company said it actively investigated issues and raised them with the FCC, and was "committed" to compensating federal and state governments.

The settlement is ultimately small and won't significantly affect T-Mobile's future. It might serve as a warning to carriers, however, if just to ensure they double-check that they're making claims for customers who genuinely ask for help.

Jon Fingas is an associate editor at Engadget.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Branding

ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Business News

You Can Now Apply to Renew Your U.S. Passport Online — But There's a Catch

The U.S. State Department officially launched the beta program this week.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.