[privacy] Verizon Letter on Privacy Stirs Debate

["Richard M. Smith" <rms () computerbytesman com>]

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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