...So, how does a rural carrier comply with the new customer proprietary network information (CPNI) rules and standards without impairing its critical relationships with its customers?

The new CPNI rules that took effect December 8, 2007, add safeguards against acquisition and sale of call-detail information by data brokers and existing restrictions upon use of CPNI for marketing purposes.

Congress included a CPNI provision (Section 222) in the 1996 Telecommunications Act to limit use of local exchange customer data by regional Bell operating companies to market their interLATA toll services. Whereas Section 222 also referenced privacy, it remained secondary to competitive concerns until 2005, when the FCC was faced with complaints that data brokers were obtaining the call records of officials and celebrities from cellular and other carriers, then selling the data on Web sites. The commission selected the privacy language of Section 222 as its weapon for attacking these abuses, and engrafted new "anti-pretexting" rules on top of its existing CPNI marketing restrictions.

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The new CPNI rules create a great deal of tension between the goal of resolving ordinary and legitimate customer inquiries and the goal of preventing unauthorized disclosure of CPNI to entities posing as customers. Whereas the new regulations regarding the use of passwords to "authenticate" customers making telephone inquiries have drawn the most criticism and concern, the more dangerous aspect of the new rules is the commission's open-ended requirement that carriers take "every reasonable precaution" to protect the confidentiality of CPNI. The commission has stated that acquisition of CPNI by unauthorized entities will give rise to an inference that the carrier did not sufficiently protect its CPNI. The carrier will then bear the burden of demonstrating that it did in fact employ reasonable safeguards (in light of the sensitivity of the CPNI and the level of security threats). Carriers that run afoul of the "every reasonable precaution" standard, and associated presumption and burden of proof, may be severely penalized. During its 2006-2007 investigation of CPNI compliance, the commission has shown an affinity for $100,000 forfeitures (although some may be reduced on appeal).

What CPNI Is Affected?

First, carriers should understand that not all customer information is CPNI, and that not all CPNI is covered by the new...

NOTE: All illustrations and photos have been removed from this article.



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