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[privacy] Verizon Letter on Privacy Stirs Debate
From: "Richard M. Smith" <rms () computerbytesman com>
Date: Tue, 16 Oct 2007 09:12:19 -0400
http://www.nytimes.com/2007/10/16/business/16phone.html?_r=1 <http://www.nytimes.com/2007/10/16/business/16phone.html?_r=1&oref=slogin&re f=business&pagewanted=print> &oref=slogin&ref=business&pagewanted=print October 16, 2007 Verizon Letter on Privacy Stirs Debate By <http://topics.nytimes.com/top/reference/timestopics/people/h/laura_m_holson /index.html?inline=nyt-per> LAURA M. HOLSON <http://topics.nytimes.com/top/news/business/companies/verizon_communication s_inc/index.html?inline=nyt-org> Verizon Wireless, one of the nation's largest cellphone carriers, has stirred up controversy with a letter it sent to customers recently telling them that it would begin sharing information from their calling records with its "affiliates, agents and parent companies." Brian Ashby, associate general counsel for Verizon, said the company was seeking to share that information only among Verizon divisions, so it can better sell new products to existing customers. In the mailing, Verizon gave customers 30 days to "opt out" if they did not want their information shared. But analysts and consumer advocates suggest the company may also be interested in gathering information as it prepares to tailor the advertising it displays on cellphone screens, based on individual customer habits and attributes. Mobile advertising is an untapped source of revenue among mobile phone companies looking to expand their businesses. The concern about the mailing, which spread quickly online and resulted in the company clarifying its position late yesterday, points to the privacy challenges facing communications companies as they seek to deliver information and advertising directly to cellphone users. "It wouldn't surprise me if they are trying to get more information, a customer profile, as they try to expand into other services, like targeted advertising or offering other products to consumers," said Gene Kimmelman, vice president of federal and international affairs at the <http://topics.nytimes.com/top/reference/timestopics/organizations/c/consume rs_union/index.html?inline=nyt-org> Consumers Union, a nonprofit consumer group in Washington. Mr. Kimmelman said that using phone records for ad delivery would be especially sensitive. "There is a cultural expectation of complete privacy with the telephone," he said. "Consumers are not thinking about it yet as a broad multimedia mechanism." Mr. Ashby said the information collected would be shared only among Verizon's landline, wireless and Internet subsidiaries, along with the <http://topics.nytimes.com/top/news/business/companies/vodafone_group_plc/in dex.html?inline=nyt-org> Vodafone Group of Britain, which owns 45 percent of Verizon Wireless. "The point of this notice is to share information in the corporate family," he said. ...
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- [privacy] Verizon Letter on Privacy Stirs Debate Richard M. Smith (Oct 16)