Sprint.com

August 10, 2006

Sprint Nextel Continues to Champion Consumer Privacy - Settles Second of Three Lawsuits Against Data Brokers

Media contact:
Jennifer Walsh, 913-794-2950
jennifer.r.walsh@sprint.com

RESTON, Va. — 08/10/2006

Sprint Nextel Corp. (NYSE: S) secured a $1 million settlement on August 9, 2006, from 1st Source Information Specialists, Inc., in its case against the company for employing fraudulent tactics to access and sell call detail records.

"Our customers are well-served by this result. We are the first carrier to reach a judgment of this magnitude against a data broker," said Heidi Salow, senior counsel, Sprint Nextel Office of Privacy. "It sends a strong message that Sprint Nextel does not tolerate the deceptive practices employed by these bad actors."

Since January of this year, Sprint Nextel has been at the forefront of industry efforts to stop companies that fraudulently seek to obtain, sell or distribute customer records.

Legal action
Sprint Nextel filed lawsuits against three companies engaged in fraudulently obtaining and selling customer information:

  • 1st Source Information Specialists, filed in January 2006. Sprint Nextel obtained a permanent injunction against 1st Source in March, meaning that the company agreed to never again acquire, offer, sell or advertise the ability to obtain Sprint Nextel customer account information. The Aug. 9 settlement was reached with 1st Source and one of its officers. Although this settlement closes the case with respect to the corporate entity and one of its officers, the case continues against individual defendants who are also believed to be responsible for pretexting activity.
  • All Star Investigations Inc. (ASI), filed in January 2006. Sprint Nextel reached a settlement and permanent injunction against ASI in June.
  • San Marco & Associates, filed in March 2006. This case is pending.
In addition, Sprint Nextel has sent scores of cease & desist letters to other companies that have advertised their ability to obtain call detail records or other private customer information.

Legislation
Sprint Nextel has been working and will continue to work closely with Congress to craft legislation that seeks to criminalize and/or create strong civil penalties to combat this type of fraudulent activity.

Protecting customer privacy
Sprint Nextel works hard to protect the privacy of its customers' confidential information. Sprint Nextel strongly encourages its customers to take precautions to protect their personal information from being accessed by others without their permission. For example, Sprint Nextel recommends that customers regularly change passwords used to access account information on the Sprint.com web site or when calling customer care, and select unique passwords to access voicemail messages on Sprint phones. For additional customer privacy tips, please go to www.sprint.com/privacy.


About Sprint Nextel
Sprint Nextel offers a comprehensive range of communications services bringing mobility to consumer, business and government customers. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks offering industry leading mobile data services; instant national and international walkie-talkie capabilities; and an award-winning and global Tier 1 Internet backbone. For more information, visit www.sprint.com.



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