The initiative requires providers to remove Lifeline subscribers who don't use their phones at least once every 30 days. As such, it's implied that Sprint knowingly defied the rules.

The findings stemmed from an investigation on the part of the Oregon Public Utility Commission.

We've asked Sprint for comment. It won't be surprising if the carrier fights back, though. The FCC is effectively asserting that Sprint used a raft of fraudulent Lifeline claims to pad its finances. That's a serious charge, and a potentially fateful one when Sprint is still struggling to clear its union with T-Mobile. States participating in a lawsuit to block the merger are already convinced Sprint isn't honest about its intentions, and this won't help matters.

Update 9/24 1:50PM ET: As you might imagine, Sprint has a different version of events. It said there was an "error" made in July 2017 when the network implemented sweeping Lifeline changes the FCC instituted in 2016. Sprint said it "proactively" investigated and raised the issue with the FCC, and brought an independent reviewer to study the effectiveness of its changes. The company said it was "committed" to compensating governments for the claimed subsidies. You can read the full statement below.