CPUC whacks AT&T with $3.75 million fine for “wilful disregard” of public safety obligations

by Steve Blum • , , , ,

AT&T was ordered to pay a $3.75 million fine by the California Public Utilities commission for blowing off demands for information about its 911 service in 2019. Administrative law judge Karl Bemesderfer issued a “presiding officer’s decision” in a disciplinary proceeding launched last year after AT&T refused to file reports detailing its rates and terms for “next generation” 911 services that ride on Internet protocol technology, rather than old style plain old telephone service.

Besides being a sizeable slap to AT&T, the decision is a reminder that defiance of CPUC directives can be expensive. That’s something T-Mobile and Sprint might take notice of: if wrangling over informational filings is worth a fine of a few million dollars, how much does it cost to baldly merge two giant companies without permission?

The decision blasted “AT&T’s wilful disregard for the State of California’s obligation to ensure the public’s safety through oversight of the 911 system”…

We conclude that by their deliberate repeated refusals to respond appropriately to the letters from [CPUC communications division director Cynthia] Walker, their knowing misrepresentations regarding their handling of 911 traffic, and their deliberate ignoring of [a commission decision and general order], and applicable law, Respondents have engaged in conduct that merits a fine…

We conclude that Respondents’ conduct is not so egregious as to merit a maximum fine nor so excusable as to merit a minimum fine. For their repeated refusal to respond to the letters from Director Walker we find that a fine of $10,000 per day or $2.5 million is appropriate; for their misrepresentations regarding the handling of 911 traffic and their deliberate disregard of [a commission decision], we find that a fine of $5,000 a day or $1.25 million is appropriate, for a total fine of $3.75 million.

If AT&T doesn’t immediately file the necessary information, the fine will double to $7.5 million.

The decision doesn’t try to carve out new regulatory territory for the CPUC. Although the service in question is delivered via voice over Internet protocol (VoIP) technology, which the CPUC was generally barred from regulating until this year, there was an exception for 911 service.

AT&T, or anyone else with a particular interest, have until the beginning of May to file an appeal, and CPUC commissioners can request a review. Assuming AT&T appeals, as it certainly will, the fine will be put on hold until the process plays out.