VZW intros new opt-out policy for dissemination of calling records

[admin_mvu]

By Colin Gibbs
Story posted: October 12, 2007 - 1:38 pm EDT
Verizon Wireless is requiring customers to opt out of allowing the carrier to share their customer proprietary network information (CPNI), a new policy that could spark protest from the carrier’s customers.

CPNI comprises users’ calling records and includes the numbers of incoming and outgoing calls and time spent on each call, among other data. Verizon Wireless last week began sending letters notifying customers that they have 30 days to opt out of the program by calling an 800 number before their information would be shared.

Jason Devitt, who founded the mobile application company Vindigo and is now at a startup called Skydeck, posted a copy of the letter on his company blog.

“In order to better serve your communications needs and to identify, offer and provide products and services to meet your requirements, we need your permission to share this information among our affiliates, agents and parent companies (including Vodafone) and their subsidiaries,” the company informed subscribers. “Unless you provide us with notice that you wish to opt out within 30 days of receiving this letter, we will assume that you give the Verizon Companies the right to share your CPNI with the authorized companies as described above.”

CPNI has become a contentious issue in recent years as telecommunications firms and others seek to leverage their networks by delivering highly targeted ads. The Federal Communications Commission earlier this year strengthened its privacy rules regarding CPNI following the pretexting scandals that darkened the industry last year.

“Consent rules (have been) modified to require carriers to obtain explicit consent from a customer before disclosing a customer’s CPNI to a carrier’s joint venture partners or independent contractors for the purposes of marketing communications-related services to that customer,” the FCC said in a statement outlining the new requirements.

While Verizon Wireless’s latest effort may not violate FCC policies—the carrier’s partners may not be planning to use it to advertise communications-related services, for instance—the opt-out requirement is being criticized in the blogosphere as a “sneaky” tactic. And more customer backlash may be in Verizon Wireless’ future.

Spokesman Jeffrey Nelson insisted the new policy adheres to the FCC’s rules, but declined to address specifics. Nelson also declined to say whether Verizon Wireless sent the letter to all its customers.

“CPNI notices are nothing new; other telecom and wireless service providers have been using this as a means to open communications with their customers for years,” Nelson said. “This is the first time Verizon Wireless has sent a CPNI notice to customers, and in accordance with FCC guidelines, we are providing the opt-out option for sharing information among our telecom affiliates.

“We’re doing the right thing here,” Nelson said when pressed for details. “We’re doing this the right way.”