Verizon Communications Inc. (NYSE:VZ) Looks Forward To Settling U.S. 911 outage investigation, Ready To Pay $3.4 Million

The U.S. 911 outage investigation has kept the leading communications company Verizon Communications Inc. (NYSE:VZ) on its toes for a long time. As per the reports, Verizon looks forward to settling this investigation by paying as much as $3.4 million.

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What’s The Issue:

A 911 outage took place in California in April 2014. Thousands of Verizon customers tried to call 911, but they couldn’t do so. Later, the authorities decided to take an action against the company and started an investigation to find out the actual reason for that outage. The Federal Communications Commission stepped in and took the investigation to find out the cause of that outage which affected more than 7,50,000 people in California.

The outage that continued for as long as 6 hours did not affect the California residents, but more than 11 million people of different states. Due to this outage, dozens of call centers in more than seven American States couldn’t work. There were a lot of emergency cases during those 6 hours which couldn’t be resolved because of this outage. Verizon tried to fight against the government authorities for some time but agreed to the settlement when it didn’t see any light at the end of the tunnel.

As part of the settlement, the company will pay as much as $3.4 million in the form of fine for that outage. Apart from this cash fine, it will also adopt a special compliance plan that will help it look after such issues in the future. Verizon Communications Inc. (NYSE:VZ) also promised that it would improve coordination with all the call centers that take care of emergency issues across the states. There were high possibilities of a subcontractor oversight loophole during the previous outage; hence, the company has assured that it would look forward to improving the same in the future.

Brown Terrel

Brown Terrel

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.