Carriers Called to FCC to Discuss Sales of Cellphone Record

January 23, 2006 |Miscellaneous

National wireless carriers were called to the FCC late Fri. for a meeting in the Enforcement Bureau with bureau and other staffers to discuss safeguards to prevent data brokers -- who often sell their services on the Internet -- from obtaining subscriber cellphone records, sources said. Meanwhile, Chmn. Martin told reporters following Fri.’s agenda meeting the Commission has issued several subpoenas as it investigates how companies obtained mobile-phone records.

Martin acknowledged in a recent letter to Rep. Markey (D-Mass.) the Enforcement Bureau is investigating the sale of records following a rash of news accounts getting national attention (CD Jan 19 p5). Martin told reporters the FCC will examine but won’t necessarily impose additional regulation on telecom carriers to protect records. “We're primarily focused first on whether or not there have been violations of our current rules,” he said.

The issue is on a fast track, as highlighted by Fri.’s meeting with carriers. “The Commission is trying to act as quickly as we can,” Martin said. “We've been trying to seek information for quite some time from some of the parties that looked like they were providing some of the calling data.” The FCC last year sought comment on an Electronic Privacy Information Center (EPIC) filing asking that carriers be subject to stricter rules protecting sensitive subscriber information.

Enforcement Bureau Chief Kris Monteith said the FCC doesn’t necessarily have jurisdiction over data brokers, but it’s “working very closely” with the FTC, which does. Monteith said the Commission has several tools available as it pursues an investigation. Sources said calling in the carriers as a group indicates the FCC is placing considerable attention on this privacy issue.

In other comments, Martin said the FCC will take action “fairly soon” on petitions from large wireless carriers who were unable to meet a Jan. 31 deadline that 95% of their customers have location-capable handsets. Verizon Wireless, Sprint Nextel, Alltel and U.S. Cellular have handset-based E-911 solutions and are the major carriers affected. Cingular and T-Mobile are providing a network-based solution.

Martin declined to say whether the Commission would address the handset waivers through a Wireless Bureau order or through enforcement actions. Both appear under discussion, according to industry and FCC sources. “I have been trying to work with all of the commissioners to discuss the varying issues and the varying waivers that are in front of us,” he said: “The Commission will end up trying to provide some guidance soon.”

Martin also said the advanced wireless services auction remains on track for June (see separate story). “I anticipate that we are going to move forward with it,” he said. “I don’t have any other plan.”

Martin said he expects to discuss plans for an FCC Homeland Security Bureau in upcoming visits he'll make to Capitol Hill. But Martin said changes at the FCC likely won’t be incorporated into the President’s budget when it’s released next month. “Before you can make any changes at the Commission it does have to go through the process of getting approved by the Hill as part of the budgeting process,” he said: “They have oversight over that.” -- Howard Buskirk

FCC Meeting Notebook…

The FCC Office of Engineering & Technology (OET) is launching a proceeding on medical equipment in consultation with the Food & Drug Administration, OET acting Chief Bruce Franca said. “Now is the time to kind of take a complete look at the medical area to see what can be done there in terms of rulemaking,” Franca said. Noting that the office has done “a number of things… in the medical area,” Franca said the FCC wants that interplay to be as effective as possible. He cited a recent waiver from medical implant communications service rules granted a DexCom device for wireless glucose monitoring of diabetes patients. The order called the device’s value to patients “a compelling factor.” -- HB

Comr. Tate said Aaron Goldberger is now her legal advisor on wireless and international issues. Tate named Ian Dillner of the Wireline Bureau her acting advisor on wireline issues and Andrew Long, an assoc. chief of the Media Bureau, acting advisor on media issues. Tate said during the meeting media and wireline will occupy much of her time this year: “We've been spending a lot of time together,” she said of Long. The Dillner and Long appointments are likely temporary. Tate has yet to designate a senior legal advisor.

Broadband penetration is among the FCC’s 2006 priorities, said Martin as colleagues and staffers outlined their plans. Another is telecom firms’ entry into the pay TV market, Martin told a press briefing following the meeting. One agency accomplishment is Americans’ rising broadband use, Media Bureau Chief Donna Gregg said at the meeting. More than 23 million U.S. homes get cable modem service, available to 105 million households, Gregg said: “Cable modem service continued to be the market leader in 2005.” The FCC must work harder to get such services to areas lacking it, especially native American reservations, said Copps, calling net neutrality crucial. The FCC must “make sure that free and open and dynamic Internet remains” so, said Copps. Consumer privacy must be protected online, said Comr. Adelstein, urging it be made “an integral part” of the 2006 agenda. Staffers should “consider what other kinds of safeguards may be necessary,” he said.