Communications Daily is a service of Warren Communications News.

The Justice Department asked a federal court in Washington to fin...

The Justice Department asked a federal court in Washington to find AT&T in civil contempt of a court order enforcing a 2008 consent decree stemming from the company’s purchase of Dobson Cellular. The department also filed with the U.S.…

Sign up for a free preview to unlock the rest of this article

Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!

District Court for the District of Columbia a proposed consent decree, agreed to by AT&T, that would require carrier to pay the government $2 million, which includes the cost of a federal investigation, to settle the complaint. DoJ told the court that when AT&T bought Dobson, it agreed to sell mobile-wireless telecommunications businesses in two rural services areas in Kentucky and one in Oklahoma. AT&T agreed to ensure that the divested businesses were operated independently until they were sold. The carrier turned operation in the areas over to a trustee, but management trust accounts were maintained in the same database as Dobson accounts acquired by AT&T, according to a court filing. As a result, AT&T employees were able to access all account information for the accounts, DoJ said. And AT&T didn’t “adequately inform and instruct” its employees and agents of the confidentiality obligations” they had to follow. The company also didn’t track who received guidance or take steps to guarantee that the guidance was read and understood, DoJ said. Without the trustee’s approval, AT&T encouraged customers in the areas to switch their service to that company and waived early-termination fees for those who did. That violated the order, meant to “preserve the value and competitiveness” of the businesses and ensure that AT&T didn’t have an unfair advantage competing for customers under the management trust, the department said. “It is imperative that companies fully abide by their court-ordered obligations in order for our settlements to be effective in preserving competition and protecting consumers,” said Deborah Garza, acting assistant attorney general in charge of the Antitrust Division. An AT&T spokesman said the company takes seriously its duty to carry out consent decree. “As noted in the stipulation, there is no admission or determination of wrongdoing,” the spokesman said. “We felt it was in the best interest of everyone to simply put this matter behind us.”