Handheld two-way radios can be an important tool at worksites and facilities across the country, but they can also be a hidden risk to the businesses that rely on them. The Federal Communications Commission ("FCC") refers to them as Private Land Mobile Radio Service ("PLMRS") radios, but to most of us, they're just radios, everyday workhorse tools used to communicate on jobsites and facilities for coordinating people and materials, safety, and security. In an order released last week, the FCC fined a manufacturer $135,000 for failing to keep its PLMRS licenses current and for transferring control of them without permission. This fine follows an increasing trend of FCC enforcement actions, as well as signaling closer scrutiny of these mission-critical but often overlooked tools.
Overlooked, but Not Unregulated
In its December 30, 2015 Consent Decree with Constellium Rolled
Products Ravenswood, LLC, a 1,000-employee aluminum manufacturing
company, the FCC initially issued a notice of apparent liability
for $294,400, primarily for operating its radio system after the
license had expired and also for failing to seek authorization for
a change in control of the radio system, presumably due to a sale
of the company.
It is not hard to see how this happened. The FCC's database
lists hundreds of thousands of PLMRS licenses representing millions
of radios, and usually no one—including the FCC—thinks
too much about them. They make possible many day-to-day activities
upon which organizations across the United States have come to
rely. Public safety agencies, utilities, railroads, manufacturers,
hospitals, and a wide variety of other businesses—from
delivery companies to landscapers to building maintenance
firms—rely on business radio systems every day.
Unfortunately, such systems are often set up by operations-level
employees or outside vendors, with limited oversight by company
management, legal counsel, or compliance personnel. As a result,
PLMRS radios may not always be properly licensed, licenses may have
lapsed, or systems may grow beyond what is allowed by the original
authorization.
Increasing Enforcement
As the FCC notes, operators have always had an obligation to
keep their systems licensed and operating within the bounds of
their authorization. The ubiquity of these systems and their
relatively low power levels, however, has historically resulted in
only modest interest from the FCC's Enforcement Bureau. The
Constellium fine demonstrates that the FCC's new get-tough
policy extends even to companies that might not realize they are in
the communications business.
After settlement discussions, the FCC reduced the Constellium fine
to $135,000 but imposed a compliance plan, training, and reporting
requirements extending for three years. Such compliance plans can
be costly and cumbersome to implement, and they have previously
been reserved primarily for bad actors and substantial violations
of the FCC rules. The legal fees and compliance costs associated
with such requirements can be just as substantial as the already
high cost of the monetary fines.
Incomplete compliance policies may also hold up mergers or other
business before the FCC, forcing companies to engage in costly
remediation programs before proceeding with business goals.
Stay Organized, Stay Safe
The Constellium fine is a reminder that all companies, particularly large enterprises with multiple sites, should ensure that they have identified all the radio systems that they use and confirm that they are properly authorized by an up-to-date FCC license. This oversight typically requires the supervision of a senior management-level official or a dedicated compliance officer. If you have any question about your organization's compliance with the FCC's rules for PLMRS radios or other wireless devices, we recommend undertaking an internal audit or contacting an FCC law professional for assistance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.