FCC Settles TerraCom, YourTel Probe for $3.5M

The Federal Communications Commission settled an investigation of the failure of two Lifeline phone companies to protect customer data online for $3.5 million total, well below the $10 million fine initially proposed by the agency.

TerraCom, Inc. and YourTel America, Inc. agreed to the civil penalty to resolve an FCC investigation into their failure to protect customer proprietary network information under Section 201 and 222 of the Communications Act of 1934, according to a July 9 announcement.

On Oct. 24, 2014, the FCC Enforcement Bureau initially brought the action against the companies, which provide subsidized Lifeline telephone services to low-income ...