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FCC Proposes Fines For AT&T, Alltel |
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Wednesday, 01 February 2006 |
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U.S. communications regulators on Monday proposed fining AT&T and Alltel $100,000 each for failing to properly certify that they have safeguarded their customers' personal call information.
By Reuters January 30, 2006 Amid concerns that data brokers may be selling subscriber call records, the Federal Communications Commission said it demanded several carriers submit their most recent certifications proving they had complied with federal regulations requiring them to protect customer data. The FCC's enforcement bureau accused the two telecommunications companies of failing to fully certify that a company officer had personal knowledge that procedures were in place to safeguard customer information. AT&T, the largest U.S. telephone company which was recently formed when SBC Communications bought AT&T Corp., only submitted a certification for SBC but not for the old AT&T, the FCC said. "AT&T had the systems and procedures in place to protect customer data," said Michael Balmoris, a spokesman for the new AT&T. The company was unable to locate a copy of certification for the old AT&T, he said. The FCC accused Alltel, the No. 5 U.S. wireless carrier and a rural telephone service provider, of sending the agency only a statement about how it uses customer data but did not provide the certification. An Alltel representative declined to comment. FCC enforcement bureau chief Kris Monteith proposed that each company be fined $100,000 for the apparent violations. AT&T and Alltel can offer more information to prove that a fine is not warranted or that the amount should be reduced, the agency said. State attorneys general, the FCC and lawmakers have been looking into whether any laws were broken by companies that obtain and sell phone records or carriers that maintain the records. The House Energy and Commerce Committee plans to hold a hearing on Wednesday on the subject and several lawmakers in the U.S. House of Representatives and Senate are planning legislation. The FCC on Monday also ordered all telecommunications carriers to provide by Feb. 6 their latest certifications and statements describing how they comply with the FCC rules on customer telephone information. |
