FCC Hits Canadian Pacific With $1.2 Million Fine For Wireless Radio Violations

The Federal Communication Commission ordered Canadian Pacific Railway Limited (USA) CP to pay a fine of $1.21 million for violations regarding wireless radios.

In 2015, Canadian Pacific's internal audit revealed it has not complied with FCC licensing regulations. The probe revealed that the formally called Soo Line Corporation operated more than 100 wireless radio facilities in the United States without prior FCC approval, and failed "to obtain FCC authorizations for the transfer of control of thirty wireless radio licenses."

"Wireless facilities are critical to the safe and efficient operation of our nation's railways. We take seriously our responsibility to ensure that the ownership and operation of all such facilities comply with the FCC's licensing processes," Travis LeBlanc, chief of the enforcement bureau, said in a press release.

Related Link: Can Canadian Pacific's Cost Controls Position It To Rise Again?

In order to rectify the situation, Canadian Pacific will implement a three-year plan "to ensure compliance with FCC requirements, and it will continue to maintain an internal compliance plan that the company implemented prior to its discovery of the violations."

Shares of Canadian Pacific closed Monday's regular trading session at $148.92.

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