The Federal Communications Commission has reached a $3.5 million settlement with YourTel America, Inc. and TerraCom, Inc., for allegedly breaching the privacy of up to 305,000 customers.  The FCC initially proposed to fine the phone companies $10 million for storing customers’ personal data on unsecured, publicly accessible servers and failing to implement “even the most basic and readily available technologies and security measures.”  According to the FCC, the companies “created an unreasonable risk of unauthorized access” to the customers’ data and were “unjust and unreasonable” in failing to notify all affected customers of the breach, thereby violating the Communications Act of 1934.  Although the lower fine suggests that the FCC wanted to soften the blow for these particular companies, previous statements from FCC Chairman Tom Wheeler indicate that the Commission intends to continue punishing telecommunications providers for privacy violations in the future.