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Posts with tag DOJ

Department of Justice casually looking into abuses of power by big carriers?

Word on the street has it that the US Department of Justice has started informally looking into whether top carriers have gotten all antitrust-y on us, specifically investigating hardware exclusives and restrictions on the services third parties can offer on the network (open access, anyone?). The carriers potentially being called into question here -- most likely Verizon and AT&T, seeing how they're the largest by a long shot and have both made recent acquisitions to beef up their footprints and positions -- say that they've received no notices of investigation, so if this is really happening, it's still in the earliest stages. Beefs over handset locking and exclusivity are nothing new and have come from governments and competitors alike -- but considering the price flexibility they ultimately give carriers on the front end, they've still got a place in the hearts and minds of consumers who put a premium on (perceived) value and instant gratification. It remains to be seen what'll happen to pricing when you can't promise your carrier you won't run off with its subsidized gear the next day, but we can't imagine it'll be good.

AT&T pays out $8.2 million settlement over school E-Rate program

"Settlement" and "needy schools" aren't two things that most companies would like to see in a press release, but that's exactly what AT&T is dealing with at the moment after it has paid out $8.2 million to settle a dispute involving the E-Rate program, which uses funds collected from phone customers to pay for hardware and connectivity service fees for schools and libraries. According to the Department of Justice, AT&T (or, more specifically, AT&T Technical Services Corp.) allegedly not only engaged in non-competitive bidding practices for E-Rate contracts, but claimed and received E-rate funds for goods and services that weren't eligible for the program, and over-billed the E-Rate program for some of the services it provided. This resolution is also apparently specifically a result of a federal investigation into fraud and anti-competitive conduct in the E-Rate program in Indiana which, it seems, is still ongoing.

AT&T reportedly eyeing post-merger Verizon Wireless assets

As you may recall, one of the requirements that Verizon had to agree with in order to complete its little acquisition of Alltel was that it must offload some $3 billion in wireless assets to avoid becoming too monolithic, and it looks like there's already a number of bidders angling for a piece of the action. The biggest of those, by far, is AT&T, which is apparently looking to pick up as big a chunk of the assets as it is able to and, according to The Wall Street Journal, it's in a good position to do just that. Other interested parties reportedly include a joint bid from the Carlyle Group and Kohlberg Kravis & Roberts & Co, a separate bid from Providence Equity Partners LLC, and at least one unnamed cable provider. Any of those bids, however, would still be subject to approval by the Department of Justice, with AT&T sure to draw the most scrutiny of the lot.

[Via The Wall Street Journal]

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AT&T forced to pay $2 million for violating court orders in Dobson acquisition

You just thought that whole AT&T-Dobson Communications tie up was completely over. Turns out, AT&T is now being asked to pay $2 million as part of a civil settlement for violating a pair of court orders related to the acquisition. According to a petition filed by the Department of Justice, the carrier failed to fulfill its obligations when divesting mobile wireless businesses in three rural service areas (two in Kentucky and one in Oklahoma). In essence, AT&T personnel reportedly obtained "unauthorized access to the divested businesses' competitively sensitive customer information, and in some situations used it to solicit and win away the divested businesses' customers," and it doesn't take a lawyer to understand how sketch that is. Tsk, tsk, AT&T.

[Via RCRWireless]

FBI taps cellphone mics to eavesdrop on criminals

While we figured the NYPD could just install Magic Message Mirrors in every mafia hotspot in the Manhattan area, the Genovese family has proven quite the eagle-eyed bunch when it comes to spotting wiretaps, tailing, and other (failed) attempts of bugging their conversations. In order to tap into critical conversations by known mafioso and other, less glamorous criminals, police are utilizing a "roving bug" technique which remotely activates the microphone of a crime lord's cellie, giving the boys in blue convenient access to their secret agenda(s). The presumably controversial tapping was recently approved by top US DoJ officials "for use against members of a New York organized crime family who were wary of conventional surveillance techniques." Software hacks (and actual phones, too) have previously allowed such dodgy eavesdropping to occur, with "Nextel, Samsung, and Motorola" handsets proving particularly vulnerable, but this widespread approach in tracking down criminal conversations could hopefully pinpoint future targets where prior attempts failed. Of course, if mafia members hit the internet every now and then, they're probably removing those batteries right about now anyway.




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