AT&T agreed to pay $13 million and strengthen its data retention practices to settle an FCC Enforcement Bureau investigation into the integrity of the carrier’s supply chain and “whether it failed to protect the information of AT&T customers in connection with a data breach of a vendor’s cloud environment,” said a Tuesday news release from the FCC. The agency refers only to “Vendor X.” In January 2023, the vendor “suffered a data breach that exposed information” of nearly 9 million AT&T wireless customers, according to a consent decree. “AT&T failed to ensure the vendor: (1) adequately protected the customer information, and (2) returned or destroyed it as required by contract,” the FCC said. “The Communications Act makes clear that carriers have a duty to protect the privacy and security of consumer data, and that responsibility takes on new meaning for digital age data breaches,” said FCC Chairwoman Jessica Rosenworcel. Protecting customer data is a top AT&T priority, a spokesperson said in an email. “A vendor we previously used experienced a security incident last year that exposed data pertaining to some of our wireless customers,” the spokesperson said: Though AT&T systems weren’t compromised “we’re making enhancements to how we manage customer information internally, as well as implementing new requirements on our vendors’ data management practices.”
CTIA representatives believe the FCC should reconsider proposed rules requiring blocking texts, set for a vote at the commissioners' Sept. 26 open meeting (see 2409050045). In a filing Tuesday, CTIA reported on a meeting with an aide to Commissioner Nathan Simington. “The wireless ecosystem’s efforts to combat spam and scam text messages are working, as evidenced by the significant drop in consumer complaints reported over the last few years,” said the filing posted in docket 21-402 : “The best way the Commission can protect consumers from spam and scam texts is to pursue enforcement actions against bad actors, either directly or through partnerships with other law enforcement agencies.” CTIA made similar points in a meeting with an aide to Commissioner Brendan Carr before the order was circulated (see 2409060055).
T-Mobile and UScellular jointly filed data at the FCC about their spectrum holdings, broken down on a cellular market area (CMA) basis. The filings were posted Tuesday in docket 24-286, one day after the companies filed a public interest statement and other documents about T-Mobile’s proposed buy of “substantially all” of the smaller carrier’s wireless operations, including some spectrum (see 2409160029). “Based on the FCC’s criterion, out of these 157 CMAs, there are 33 CMAs where T-Mobile or UScellular (or both) are considered to lack a competitive presence,” they said. AT&T has a “competitive presence” in each of the 124 CMAs T-Mobile or UScellular serve and Verizon [has] a competitive presence in 116, according to the filings (see here and here). “Based on this analysis, it should be evident that robust competition will continue to exist in all CMAs overlapped by the proposed transaction.”
The “must-vote” clock on radio group Audacy’s request for a temporary waiver of FCC foreign-ownership rules is set to expire Wednesday, and FCC officials told us they're expecting its approval, though at least one Republican will dissent on what in several past proceedings has been a routine request. Audacy, which owns more than 200 stations and is the second-largest radio group in the U.S., is seeking the waiver to allow it to first complete a bankruptcy restructuring that has George Soros-affiliated entities purchasing its stock. The FCC’s Democrats have already voted the item, agency officials told us.
Senate Commerce Committee Chair Maria Cantwell, D-Wash., is eyeing attaching her Spectrum and National Security Act (S-4207) to an end-of-year package instead of pursuing another markup attempt before Congress recesses at the end of September for pre-election campaigning. She previously eyed a potential September markup of S-4207 (see 2408150039) in hopes of resurrecting the measure after it repeatedly stalled earlier this year. S-4207 would restore the FCC’s spectrum auction authority through Sept. 30, 2029, and provide a vehicle for allocating funding for the commission’s lapsed affordable connectivity program and other telecom priorities.
The blackout of Disney broadcast networks and linear channels on DirecTV's satellite and streaming systems ended Saturday as the two reached a distribution deal. DirecTV said the agreement included the ability to offer genre-specific packages such as Disney linear networks. In addition, Disney's streaming services will be included in some DirecTV packages as will distribution rights for Disney's upcoming ESPN streaming service at no additional cost to DirecTV subscribers. DirecTV said Monday its bad-faith negotiation complaint lodged against Disney with the FCC remains active (see 2409090003).
The FCC’s Communications Security, Reliability and Interoperability Council will hold the second meeting under its new charter on Sept. 27, starting at 1 p.m., at FCC headquarters, the FCC said Monday. The group held its initial meeting June 28 (see 2406280050). Its focus this term is on AI and 6G.
The FCC’s Disability Advisory Committee will meet Oct. 18 starting at noon at FCC headquarters, the commission said Monday. The announcement confirms what had been a tentative meeting date (see 2408010050). DAC last met in May (see 2405160051).
Comments are due Oct. 17, replies Nov. 1, on whether to require a winning bidder in the 5G Fund Phase I auction to show during the long-form application process that it has obtained the consent of the relevant tribal government for any necessary access to deploy network facilities using funds from the program, said a notice for Tuesday’s Federal Register. FCC commissioners approved 4-1 a Further NPRM on tribal issues along with an order on the fund in August (see 2408290041). Commissioner Brendan Carr dissented. “In seeking comment on this issue, the Commission asks commenters to provide input on how it can best assess an applicant’s eligibility to be authorized to receive 5G Fund support for the purpose of deploying network facilities that would enable 5G mobile broadband service located on Tribal lands, while incorporating Tribal government consent into the Commission’s approval process,” the notice says.
T-Mobile and UScellular made the case why T-Mobile’s proposed buy of “substantially all” of the smaller carrier’s wireless operations, including some of its spectrum (see 2405280047), makes sense for customers. In a public interest statement on the proposed transaction, they wrote, “The Transaction will increase competition across the UScellular footprint and not result in any competitive harm.” T-Mobile has “a well-established track record of using improvements in network performance and increased capacity to deliver greater value to consumers and enhance competition." The statement was posted Monday in docket 24-286, which the FCC created last week (see 2409110059). “Customers of both companies will experience significant benefits from increased network capacity, higher speeds, and reduced congestion within the UScellular footprint,” the companies said: “UScellular customers will have the choice to switch to a lower-cost T-Mobile plan or remain on their current UScellular rate plan, all while enjoying a world-class 5G network.” The filing said the deal won’t affect T-Mobile pricing, “which is generally lower than prices for comparable UScellular plans.” It emphasizes that about 40% of UScellular subscribers live in rural markets and the buy “will result in an enhanced user experience and faster and better 5G service for the rural customers of both companies.” Nearly all of UScellular’s customer devices are compatible with T-Mobile’s network and “migration of the vast majority of UScellular customers can be accomplished almost immediately after closing via an over-the-air software update,” the filing said. Much of the data was redacted from the public filing, including estimated monthly savings for UScellular customers, the combined capacity of the network that will be available to those subscribers and the number of households expected to gain access to T-Mobile’s Home Internet service. The companies told the FCC they don’t “have an overlapping competitive presence” in 74 of the cellular market areas (CMAs) affected, which is 37% of the markets involved in the transaction. “Both before and after the Transaction, at least three nationwide facilities-based carriers (including T-Mobile) will provide competition in almost all CMAs in the UScellular footprint.” The filing comes ahead of T-Mobile’s Capital Markets Day, scheduled for Wednesday.