mmh0000
9 months ago
If I'm not terrible at my math...
T-Mobile earned $8 billion in 2023. Some division later, that works out to $21,000,000 per day.
They were fined less than one day's income. If I owned that company, increasing IT security would be near the bottom of my list of priorities.
notinmykernel
9 months ago
As part of the agreement, TMobile has to harden IT security and show proof (e.g., CISO who reports regularly to feds, adoption of Zero Trust, adoption of minimal data retention policy). Why TMobile must have their hand held like this is beyond me.
AdmiralAsshat
9 months ago
And if T-Mobile fails to live up to their end of the agreement, what's the punishment? More meaningless fines?
beefok
9 months ago
AND we get increased monthly bills to pay for the cost of their fuckups.
freedomben
9 months ago
Is the $8B profit or revenue?
To your point, $16M is surely not a big fine for such a big company though, but I do think it's important not conflate profit and revenue when evaluating fines.
Generally speaking, I would love to see some much harsher penalties for negligence with data. I want companies to start seeing customer data as a liability, not as an asset, and I don't think that will happen until f**k-ups starts really making a dent in the bank account.
default-kramer
9 months ago
I still think the C-suite won't care unless the cleanup/penalty costs get pulled directly from their bonus before anywhere else. Otherwise it will just be "oops, I tanked this business, better luck at the next one."
Wytwwww
9 months ago
> Is the $8B profit or revenue?
Profit, their revenue is almost 80 billion. Fines like this should be certainly based on revenue rather than profit, though (like the EU does it)
freedomben
9 months ago
Why should they be based on revenue rather than profit? (I'm not disagreeing, interested to understand your reasoning)
supertrope
9 months ago
Businesses can strategically reduce taxable income. Gross revenue is less malleable.
c0wb0yc0d3r
9 months ago
No the person you were replying to, but my reason is that revenue is before expenses. The fine actually has to cost the company money for it to mean anything.
blackeyeblitzar
9 months ago
It’s $8.3B in net income (so profit) - see slide 4 in this PDF: https://s29.q4cdn.com/310188824/files/doc_financials/2023/ar...
jrwoodruff
9 months ago
The equivalent of about $200 for someone making $100,000/yr
focusedone
9 months ago
FCC: "That'll teach 'em"
freedomben
9 months ago
My guess is that the FCC doesn't have a ton of discretion here. They probably have to follow the law. And no doubt an "unreasonbly" large fine would be challenged in court and probably overturned, so this may be the best they can do.
outside1234
9 months ago
And/or lobbying has made the fines very small