FCC Cites AT&T, Alltel on CPNI Failures
The FCC proposed financial penalties against Alltel and AT&T on accusations of failure to certify they have properly protected customer proprietary network information (CPNI). Each would have to pay a $100,000 “forfeiture” unless it can show it has the required certificates. The FCC also ordered all carriers, wireless and wireline, to submit a copy of their compliance certificates to the Commission by Jan. 6. The actions come with Chmn. Martin expected to testify today (Wed.) at a House Commerce Committee hearing on why phone records aren’t safe from “pretexting.”
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The order, issued by the Enforcement Bureau late Mon., is the latest development as the FCC investigates and takes steps aimed at keeping carriers from sharing cellphone records with information brokers, who often obtain the records under false pretenses. “This shows, I think, that the FCC is going to keep the pressure on carriers to do what they can so that there aren’t any more headlines about pretexters selling phone records,” said a regulatory source.
Martin indicated Mon. the FCC had asked major carriers to submit their certificates to the Commission -- in compliance with a House Commerce Committee request for the certificates from the 5 largest wireless and wireline companies. The FCC order acknowledges the Commission has reviewed certificates from some carriers. “After reviewing the submissions filed… we find further investigation and review of all telecommunications carriers’ most recent annual CPNI certifications is required.”
The order citing Alltel said the carrier submitted its certificate Jan. 27, but “the document submitted by Alltel does not satisfy” Commission rules. The 2nd action came after the newly reconstituted AT&T submitted a certificate for SBC but not for premerger AT&T.
“Alltel has a long history of protecting customer privacy and the company has many security measures in place to protect customers’ records,” Alltel said: “The proposed FCC penalty is based solely on the form of certificate submitted by Alltel to the FCC and does not go to the substantive controls in place at Alltel to protect customer information.”