What do AT&T, Verizon, Sprint and T-Mobile have in common?
In addition to being the four largest wireless carriers in the U.S., these companies have also just been showered with millions of dollars FCC fines.
Why?
AT&T, Verizon, Sprint and T-Mobile allegedly shared location data with third parties without their users’ consent, which is illegal.
“Our communications providers have access to some of the most sensitive information about us,” FCC Chairwoman Jessica Rosenworcel said in a statement. “These providers have failed to protect the information entrusted to them.” This is some of the most sensitive data in their possession: real-time customer location information that reveals where they are going and who they are.”
FCC imposes fines on the largest US wireless providers
According to the FCC, T-Mobile was hit with the largest fine: $80 million. Sprint, which has merged with T-Mobile since the FCC’s investigation began, also received a $12 million fine.
Destructible speed of light
AT&T will have to pay more than $57 million and Verizon will pay nearly $47 million.
In total, the four major wireless carriers in the U.S. will pay more than $200 million in penalties for sharing sensitive customer data without their knowledge or permission.
What happened?
AT&T, Verizon, Sprint and T-Mobile all allegedly sells access to its own customers’ location data to “aggregators.” These aggregators then resold access to other location-based third parties.
“Each carrier attempted to shift its obligations to obtain customer consent to downstream recipients of location information, which in many cases resulted in a failure to obtain valid customer consent,” the FCC said.
According to the FCC, these four wireless carriers violated the law set forth in the Communications Act, which requires these companies to protect sensitive data, including location information.
The specific case that led the FCC to conduct its initial investigation is also laid out in the FCC’s announcement and is certainly alarming.
A sheriff from Mississippi was persecution tracking people via their cell phones through a prison communications company called Securus. Securus received this location data from the four major mobile phone providers.
This case clearly shows the important role mobile phone providers play in protecting our data – and the consequences if they fail to do so. Now, thanks to the FCC, these companies are facing millions of dollars in fines.