Rosemary Harold

The Federal Communications Commission announced that T-Mobile will pay a $200 million penalty to the US Treasury to resolve an investigation of its subsidiary Sprint’s compliance with the FCC’s rules regarding waste, fraud, and abuse in the Lifeline program for low-income consumers. The payment is the largest fixed-amount settlement the FCC has ever secured to resolve an investigation.

The Federal Communications Commission reached a $5 million settlement with voice over Internet provider (VoIP) magicJack regarding its failure to report its interstate revenues and contribute to the Universal Service Fund. The company, which sells a VoIP telephone service to consumers, agreed to the settlement, along with an extensive compliance plan. magicJack markets itself to consumers as a competitive replacement for traditional telephone service. It uses Internet service to allow consumers to make phone calls to and receive calls from traditional mobile and landline phones.