Thursday, May 23, 2002

Phone companies telling who and when you're calling




By The Associated Press
and Cincinnati Enquirer

        INDIANAPOLIS — When Jason Settles added his name to Indiana's new “no-call” list, he expected relief from the tyranny of telemarketers.

        But the computer consultant's dreams of dinner in peace quickly turned to alarm when he learned his own phone company intended to share details of his calling habits with its corporate affiliates.

[photo] Jason Settles is concerned about his telephone company's plan to share his calling habits with its corporate affiliates.
(Associated Press photo)
| ZOOM |
        Unless customers call a toll-free number to request otherwise, Ameritech plans to share information about what numbers they call, how often they call and how much they pay.

        Could telephone offers of Internet, wireless service and other products be far behind? Mr. Settles asked.

        “From a marketing standpoint, they're taking the path of least resistance — if you don't do anything, we're going to have the right to use that information,” he said. “Most people don't ever get around to calling that number.”

        While insisting that they are upholding their legal obligation to protect customers' calling data, many of the nation's biggest phone companies have begun sharing that information with affiliates.

        Verizon, Ameritech parent SBC Communications Inc. and Sprint are among the telecommunications giants using an “opt-out” approach: notifying customers about their data-sharing plans, typically through fliers tucked into phone bills, and assuming customers approve unless they call a toll-free number.

        Cincinnati Bell annually notifies its customers in a billing insert that it shares calling information with its other subsidiaries, a spokeswoman said.

        The unit of Broadwing Inc. has a similar policy about sharing publicly available information such as directory listings with other companies. If customers call Cincinnati Bell and say they don't want their information included in phone lists, the company will honor that request, she said.

        The opt-out plan backfired for Denver-based Qwest Communications International, which withdrew that plan in January after thousands of customers in the West expressed privacy concerns.

        Verizon also has responded to consumer resistance, mailing “opt-out” notices to local-service customers in 30 of the 31 states it serves. The exception was Washington, where the mailing was postponed after the Qwest outcry, spokesman Bill Kula said.

        The turmoil comes as consumer groups and attorneys general in 38 states are urging federal regulators to reinstate restrictions that required phone companies to employ an “opt-in” approach for sharing customer calling information with affiliates.

        The FCC is reconsidering regulation of customer calling data. New rules could emerge by year's end, FCC spokesman Michael Balmoris said.

       



Lindner departs Chiquita's board
100 jobs may come to airport
Broadwing stock takes another dip
Finnan attorney denies charges
- Phone companies telling who and when you're calling
Tristate Summary
Morning Memo
What's the Buzz?