Report: Sprint to be fined $105 million by the FCC for false billing

More bad news out of the Sprint camp: Bloomberg reports this afternoon that the embattled Overland Park-based wireless carrier may face fines of $105 million from the Federal Communications Commission.

The allegations stem from what’s known in the industry as “cramming.” Re/Code explains cramming as what happens when “a third-party company places a charge on a subscriber’s mobile phone bill without authorization. These so-called “Premium SMS” charges are often for things like subscriptions to online horoscopes or celebrity gossip. A wireless carrier gets a cut of the take.” AT&T has paid $105 million in fines for cramming, and T-Mobile is currently in negotiations with the FCC over similar claims. 

The news comes at a critical juncture for Sprint, which has been undergoing massive layoffs (including 1,400 local positions) as new CEO Marcelo Claure tries to turn the company around with new offers, like its “Cut your bill in half” promotion.