WASHINGTON—Alltel Corp. agreed to “voluntarily contribute” $100,000 to the U.S. Treasury, but did not admit to violating a Federal Communications Commission rule requiring certification that it is protecting its customers’ call records.
The FCC proposed fining Alltel in January after the carrier did not file the proper certification that it was protecting its customers’ call records.
“Alltel provided a two-page document executed by in-house counsel for Alltel that described generally how Alltel uses customer proprietary network information. The document, however, did not indicate that ‘the officer has personal knowledge that Alltel has established procedures that are adequate to ensure compliance with the CPNI rules,’” reads the FCC’s consent decree. The FCC proposed the fine because of “Alltel’s apparent violation of the commission’s rules by failing to have an officer with personal knowledge execute an annual certificate that the company has established operating procedures adequate to ensure compliance with the FCC’s rules governing protection and use of CPNI.”
The $100,000 contribution is the same amount as the proposed fine. “This resolves the issue fully and finally. You’ll recall this relates to a technical violation when the proper officer did not sign the original certification we filed earlier this year,” said Andrew Moreau, Alltel spokesman.
In the consent decree, Alltel does not admit any wrongdoing and Alltel did file the necessary certification after the FCC proposed the fine.
“Alltel is glad to put the issue behind us. Alltel has a long history of protecting customer privacy and the company remains committed to securing private customer information,” said Moreau.
As part of the consent decree, the FCC is prohibited from using any of the information in the future.
Each year carriers must certify that they are protecting CPNI. However, the certifications are not filed with the FCC; instead, each carrier must make it available upon request.
The FCC was forced to ask the five largest wireless and wireline carriers for their certifications after the House Commerce Committee requested the filings. Later, in a separate action, the commission asked all telecommunications carriers to file their certifications with the agency.
The FCC also proposed a similar fine against AT&T Inc. The commission settled that case last month when AT&T agreed to make a contribution of $550,000 to conclude the CPNI issue and an on-going investigation regarding SBC Communication Inc.’s opt-out policy. SBC last year acquired AT&T Corp. and took on the AT&T name.
As part of that consent decree, AT&T agreed to implement a CPNI compliance plan and to revise its opt-out procedures. Under FCC rules, a customer can opt-out of having their information shared. SBC had told the FCC in July 2005 that its opt-out procedures were deficient.
“A consumer’s telephone call records include some of the most private personal information about an individual. Access to telephone records can show who people are calling and for how long. For all practical purposes, it is like picking someone’s brain about their friends, plans or business dealings,” said FCC Commissioner Jonathan Adelstein. “Every provider should be on notice that this is at the top of our agenda, we are watching closely and we will take the action necessary to protect consumers’ privacy, and we expect them to do the same.”
