The Federal Communications Commission levied fines against two wireless carriers over breaches of consumer privacy.
Low-income oriented cell carriers YourTel and TerraCom have been sanctioned with a combined $10 million in penalties. The FCC found evidence these mobile providers not only insecurely stored customer’s personal information, but failed to inform subscribers that their information had been compromised.
According to the FCC, customers’ Social Security numbers as well as their full names and addresses were saved on unsecured servers that required no password or other login credentials to access. “The most sensitive, personal information of up to 305,000 Americans was available to anyone with an Internet connection anywhere in the world,” said FCC Chairman Tom Wheeler.
The case illustrated the increased willingness of the FCC to assert its authority over the mobile industry. In early October, the FCC fined AT&T $105 million in a settlement over unauthorized or “crammed” charges the company added to subscriber accounts. The ruling made AT&T the first major carrier to settle over allegations of cramming, though the other carriers are in the FCC’s crosshairs over the issue.
This increased activism on the part of the FCC comes as the agency continues to debate the future of net neutrality, a popular internet movement that argues all online traffic should be treated equally in terms of speed and accessibility. The FCC has strongly considered extending net neutrality regulations to mobile devices and has indicated that the mobile networks should be regulated in the same way as fixed broadband.
Though a decision has yet to be made on the issue, the FCC’s latest actions suggest it has grown increasingly comfortable with taking an active approach to regulating the mobile market.
