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Four wireless carriers hit with multi-million-dollar FCC fines

Four wireless carriers have each been fined millions of dollars by the Federal Communications Commission (FCC).

The FCC on Monday accused AT&T, T-Mobile, Sprint and Verizon of sharing access to customers’ location information “without their consent and without taking reasonable steps to protect that information from unauthorized disclosure.” , accused carriers of imposing fines. Regulators claimed this was a violation of the law.

ticker safety last change change %
T AT&T Corporation 16.89 -0.13 -0.76%
TMUS T-MOBILE US INC. 164.17 -0.08 -0.05%
VZ Verizon Communications Inc. 39.49 -0.60 -1.50%

In this connection, regulators have fined T-Mobile more than $80 million, and its brand Sprint has also been fined more than $12 million, according to a press release from the agency.

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Meanwhile, AT&T and Verizon’s fines totaled approximately $57 million and $47 million, respectively.

The logo of AT&T, an American telecommunications company, seen in San Francisco. (Alex Tai/SOPA Images/LightRocket via Getty Images / Getty Images)

The FCC alleged that “aggregators” that received customer location data from carriers charged third-party location service providers access fees.

The regulator also alleged that carriers continued the practice of selling access to such data “even after recognizing that their security measures were ineffective.”

ticker safety last change change %
VZ Verizon Communications Inc. 39.49 -0.60 -1.50%
TMUS T-MOBILE US INC. 164.17 -0.08 -0.05%
T AT&T Corporation 16.89 -0.13 -0.76%

“This industry-wide third-party aggregator location services program was discontinued more than five years ago after taking steps to ensure critical services such as roadside assistance, fraud prevention, and emergency response remained uninterrupted. “T-Mobile told FOX. work. “We take our responsibility to keep customer data safe very seriously and have always supported the FCC’s efforts to protect consumers, but this decision is wrong and the fine is outrageous. I intend to object to that.”

T-Mobile logo

T-Mobile logo on a building in Chicago, USA, October 19, 2022 (Photo by Jakub Porzycki/NurPhoto) ((Photo Credit: Jakub Porzycki/NurPhoto) / Getty Images)

AT&T also disagrees with the FCC’s move, telling FOX Business it plans to challenge the order “after conducting a legal review.”

The Texas-based airline “improperly exposes us to liability for another company’s violation of our contractual requirements to obtain consent, and we take immediate steps to address that company’s failure.” “They are ignoring us and unfairly punishing us for supporting location-based services that save lives, such as emergency medical care.” alerts and roadside assistance, which the FCC itself had previously encouraged. ”

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“Verizon is deeply committed to protecting customer privacy,” company spokesperson Rich Young told FOX Business. “In this case, one malicious actor gained unauthorized access to information about a small number of customers, and we acted quickly and aggressively to block the fraudster, shut down the program, and ensure that this never happens again. We worked hard to prevent that from happening. Unfortunately, the FCC’s order is wrong both in fact and in law, and we intend to appeal this decision.”

The old program, which Verizon ended more than five years ago, “required affirmative opt-in consent from customers and was intended to support services such as roadside assistance and medical alerts,” Young said.

verizon

This photo shows the smartphone and the Verizon Wireless logo in the background. (Photo illustration: Igor Golovniov/SOPA Images/LightRocket, Getty Images) (Photo illustration: Igor Golovniov/SOPA Images/LightRocket via Getty Images / Getty Images)

The fines come more than four years after the FCC first imposed financial penalties on four wireless carriers in 2020, with the fines announced Monday totaling $200 million. It’s worth the weakness.

Regulators had cited an incident in which a former law enforcement officer was reported to have obtained location information through a “location service” as a trigger for scrutiny of carriers.

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FCC Chairwoman Jessica Rosenworcel said in a statement that the FCC is “once again…[d]We make it clear that wireless carriers have an obligation to keep geolocation information confidential by implementing orders and penalties.

The market capitalizations of AT&T, T-Mobile, and Verizon, each included in the 12 numbers, hover at $121.1 billion, $192.38 billion, and $166.22 billion, respectively.

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