T-Mobile owes the FCC $40 million for playing fake ringtones in unconnected calls

So what, they were hiding network slowness? Some websites do that, I think

 

= Fraud

T-Mobile was telling customers it was performing the service of putting calls through when it wasn't.

Callers were led to believe that the person called was not home, incapacitated, or did not want to talk them.

That's What

 

Oh, so calls were not being connected at all? That's crazy. With old school phones, you get a clear error noise.

 

That's bad enough but it is actually much more than that. T-Mobile was putting up these fake rings instead of putting the calls through because out in those rural areas affected, the calls would have to be routed through competitors' networks since the T-Mobile network did not provide coverage in those areas. And that would mean T-Mobile would have to pay a fee to that competitor and they didn't want to do that. So they threw up a fake ring instead - even when those calls were to rural hospitals and other important numbers!

So this was all to "cover up" the fact they had poor coverage/service in those affected rural areas (in Wisconsin in this particular case).

But it gets worse!!!

The FCC told T-Mobile (and the other carriers) in 2014 when new rules were implemented that this practice was illegal. T-Mobile told the FCC back then they would stop. But they didn't!

So T-Mobile lied to the FCC as well as their rural customers - hence this $40million fine. And it was not just the fine. They also have to demonstrate compliance with those rules and regulations which stipulates customers who live out in the boonies must have equal coverage and quality of service (either through direct T-Mobile coverage or via mutual agreements with competitors) as those customers in urban areas. No more honor system for T-Mobile.

 

Wow! That is insane.

 

It's also insane when they are found guilty, a multi billion dollar corporation gets a fine that is going to hurt them about as much as a slap on the wrist.

 

I thought about that too. And yeah, that is not really a lot of money for a company worth more than $20 billion. But Verizon got hit for a similar issue (though not fraudulent) in 2015 and that was just $5 million. So $40 million is a big step up and sends a much bigger message to everyone else. Plus, $40 million still stings in such a tight, competitive market.

I wish there was some information out there on how much profit they really make per account. I realize they have to spread it out between city dwellers where towers are busy and those out in the boonies where coverage per mile does cost a lot more. And they have to keep investing in new towers and faster equipment. But still, I feel I pay at least double than I should - especially since I don't live on my cell phone like many do (I still have a land line to my house!).

 

OK, so is this all about calls between carriers? I gather that T-Mobile dropping calls to other carriers, to avoid paying fees. So was Verizon also dropping calls to other carriers?

 

Except they weren't "dropping" calls. In a dropped call, the caller knows it. You either get a message saying the call could not go through, or you suddenly get "dropped" - that is, you get a bunch of nothing in their ears.

Here, with T-Mobile, they were being "intentionally" deceived with the fake ring tone so they would think they were getting through, but instead, they were basically, and unknowingly being re-routed to this fake ring tone generator. T-Mobile's devious intent was to make the caller believe they were getting through but that no one was there to answer.

Verizon was fined for "failing to complete calls in rural areas". That is, the callers knew they were not getting through. It is similar because it violated the same set of laws that required coverage of the same quality to rural areas as well as urban. Verizon was not providing the proper coverage, but they were not trying to deceive customers or cover up the fact they had poor coverage in those areas.

 

Thanks for the clarification. So Verizon was at least being honest about not completing calls. But they probably didn't make it clear why calls weren't getting through.

 

Certainly not being upfront or advertising their network's shortcomings.

 

Not just talking about T-Mobile. The US Government has got to stop these measly little fines to multi-billion dollar corps. Start the fines at hundreds of millions going up to billions.

Otherwise it's did I lose a quarter? I heard something fall. Oh well never mind.

 

But they have to do a balancing act to make sure consumers don't get hurt in the process. Did consumers lose $40 million? No reports of that? Did anybody die? No reports of that either. Since this is the first offense of this nature, it might be appropriate.

 

Well Bill the US public has got to stop being such sheep. If a company raises prices no matter the reason. Vote with your wallets. Maybe some of the public will wake up. Doubt it though.

Fines to billion dollar companies have to hurt. It's like not punishing your kids. A quarter rolling under the counter doesn't hurt big corps.

 

@Bill_Bright, well that's a first, we actually agreed on something and didn't get the thread locked lol..

 

Damn

 

I agree. But sadly, we often get locked into contracts, or other circumstances limit our options. And IMO, when it comes to cell phone carriers, switching from one to another is like jumping from the pot into the fire.

And like I said above, $40M may not really hurt T-Mobile, but it does send a big message to the other carriers.

Now what we as voters REALLY need to do is force our elected representatives to change the laws and close the loopholes that let T-Mobile and other companies write off fines and penalties on their taxes as business expenses. That's the big rip-off, IMO as that, in effect, means "We The People" get stuck with the bill for those fines. That just doesn't make any sense to me.

 

It seems most here feel that a bigger fine is appropriate but... I agree with Bill. T-Mobile customers are ultimately the ones paying this. They will get it from the customers one way or another. Does this affect other carriers? Maybe? If T-Mobile raises their rates to cover this, maybe other carriers will raise their rates... just because. Fining companies money only hurts consumers. We need a better system of punishment. Maybe a mandatory firing of those involved. Although that would probably just trickle down to those scapegoated.

 

Not sure how the government could force a company to fire someone. But the government could sure press criminal charges against those responsible - IF they could determine who had knowledge of what. And that's the problem. Those at the top are often so isolated they can claim plausible deniability and with their fancy shysters... err... ummm... lawyers, get away with it - and then stick their customers and us taxpayers with the legal fees.

What needs to happen is the shareholders need to demand honesty and integrity over profit. But there's no money in that!

 

I know you know this but, it will never... never... never... never... never happen. No, the government couldn't force a company to fire someone, unless that firing was a squad.

 

Ummm, sure it can. CEOs are pushed out (asked to retire) all the time. It happened to Steve Ballmer at Microsoft. Ford last year fired its CEO.

https://www.newyorker.com/magazine/2016/11/07/why-c-e-o-s-are-getting-fired-more

 

Well, Jeffrey Skilling of Enron fame is still in prison. But that was an extreme case.

 

I agree.
I come to a different conclusion though.

The big message to other carriers is "Do What Thou Wilt". There is no consequence of any import.

 

Yeah, it happens, but not as often as it should, IMO.

I think the 35 bankers doing time for the big Wall Street financial crisis would disagree. So might Martha Stewart.

https://www.msn.com/en-gb/news/us/ceos-who-served-jail-terms/ss-AApr0nL#image=1

I am not saying there's enough incentive to keep all companies honest. But there is probably enough to keep the honest ones honest.