Article 43


Tuesday, June 27, 2006

AT&T’s New Privacy Policy - Phone Records For Sale


Sticking with AT&T? You’re a fool
June 27, 2006

[Editor’s note: In a discussion on June 29, AT&T stated their view that this column misrepresents the terms of their privacy policy and invites you to take a look for yourself. Click HERE to see AT&T’s privacy policy in their provided link.]

[Ira’s response, June 30: The link provided by ATT is not relevant to the article. It is the link to a high level description of privacy policy to AT&Ts retail customers and Web visitors. Two links further into the site, you get to the actual privacy policy for AT&T. That policy then states that “certain AT&T Internet services and AT&T U-VERSE TV and HOMEZONE services are subject to an additional privacy policy.” This is the policy that this article addresses, and it is not available at the link provided by AT&T. I believe that the choice to provide such a link for this article speaks for itself.]

AT&T’s new privacy policy for its Internet and video services is way out of line - an insult to genuine security efforts and a brassy attempt to make its profits your problem. The announced policy changes may just be a sign that cynically attaching the “war on terrorism” label to business initiatives has reached a new low, but anyone out there who believes that AT&T has announced this sweeping new data-collection policy to support the government’s fight against terrorism is truly a fool. This new privacy policy goes way beyond even the most absurd arguments for monitoring Internet users.

Recapping the basics, AT&T claims that it “reworded” the privacy policy for its Internet service to reflect what was previously “implied.” What the company claims was implied is to the effect that while you consider your account information personal, AT&T owns it.

Once you’ve caught your breath, let’s unpack what’s happening here. First, ask yourself how AT&T benefits from a clearly controversial policy change such as this. Do you think that AT&T is changing this privacy policy just so it can provide data to the U.S. government for good will, or because the government told it to? No. If the government wants your data it has, as we know, various mechanisms to acquire it - whatever AT&T’s privacy policy. A legal warrant is a legal warrant, for example.

The implication is that AT&T is making a profit from selling the data to the federal government. And that profit must be substantial; after all, there are clearly many customers who are dropping AT&T services as a result of this proposed change. (Including me—I actually stopped a switch to AT&T’s Cingular cellular services when I heard of this development.) Clearly, AT&T will lose business by implementing or even announcing such a profound change in privacy policies. I can only imagine how much money AT&T is receiving from the government for all those records if they believe it’s worth the hit.

Next, let’s look at what this change entails. The new privacy policy basically lets AT&T do anything it wants with your information. (Remember, according to the company, it’s its information.) The specific claim is that AT&T can do whatever it wants with your/its data “to protect [the company’s] legitimate business interests.”

But think: Making a profit is a legitimate business interest. Therefore, whatever the company wants to do with any of your information, for whatever it considers within its interests, is covered. AT&T makes no pretense about it. Not only would this explicit ownership claim help the company avoid lawsuits in the future for selling data to the National Security Agency for data-mining purposes, it basically lets AT&T do whatever it wants with any of your information. This isn’t merely a knee-jerk reaction to current lawsuits, but is a profit-making venture for it forevermore.

Not disturbed yet? Ponder this: The privacy policy can be theoretically used to justify AT&T offering a service that consists of selling your corporate e-mail messages to your competitors. If AT&T offers that “service” at a profit, it’s a legitimate business interest for the company. This sounds like an extreme, but the privacy policy allows for such extremes. Posing another problem, if you deal with data protected by such regulations as the Health Insurance Portability and Accountability Act or the Sarbanes-Oxley Act, you now have a whole new set of eyes potentially on that data, with no accountability to your firm or your customers and no means by which you can keep an eye on things.

AT&T isn’t protecting its ability to work with the government—it’s granting itself the right to do whatever it wants with any of your information or data passing through its service. While AT&T’s spokesmen may well say, “We would never do that,” you’d be a fool to believe them. The company employs any number of lawyers, and they didn’t pull the “complete ownership” language out of a hat. They are stating, as they mean to state, that they are claiming complete ownership of your data. That is a huge leap from cooperation with government for perceived national security purposes.

Even if you don’t use AT&T, you must potentially consider that one of your vendors, or anyone else you exchange e-mails with, might use AT&T. While you may not technically want to give up rights to your information, what happens if these other parties send your data, or data relating to you, through AT&T? The implications are really scary. Again, AT&T says that it’s protecting its legitimate business interests, not yours or those of the parties that you deal with.

It gets better. AT&T has also extended its claims on your information by claiming that it can monitor your video usage. There are laws on the book that state that cable companies can’t monitor or collect data on viewing habits. AT&T claims that it isn’t bound by those regulations because it’s an Internet provider and not a cable operator. Unless AT&T is offering pay-per-view terrorist training videos on its network, I don’t see how the company can claim that monitoring your video consumption is a matter of cooperating with law enforcement. That data contains value only for commercial interests.

AT&T’s concerns are not about national security, but about profit and future profits. So far, even other Internet providers are disagreeing with AT&T’s position. Unless there is a substantial backlash, though, it is likely that AT&T will extend this privacy policy to other AT&T operating units. Likewise, other Internet providers may follow suit if AT&T doesn’t take a big hit. They might want to start selling your data ... I mean their data ... as well.

So there you have it: You’d be a fool to continue to use AT&T now that its data grab is on the table. For that matter, you are a fool to do business with anyone who uses AT&T themselves. This isn’t about security in any way, shape or form—the motivation is clearly profit. Since AT&T isn’t cutting you in on its profit from your—I mean its data—don’t give it to the company in the first place.


Posted by Elvis on 06/27/06 •
Section Privacy And Rights
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Rising Of The Telecom Equipment Vendor Underclass

June 27, 2006

Nortel Networks Corp. today announced a net reduction of 1,100 jobs globally, part of a previously announced business transformation plan designed to improve its performance.

The Brampton, Ontario-based company also announced changes to its North American pension program that will reduce its pension liability deficit by $400 million by 2012.

“Today’s announcements continue our efforts to increase competitiveness, better manage our costs and secure the resources to fuel Nortel’s innovation,” Nortel CEO Mike Zafirovski said in a statement.

In all, the company announced that it will cut 1,900 jobs, while creating 800 new positions in two planned facilities known as operations centers of excellence in MEXICO and Turkey. Prior to the cuts announced today, Nortel had about 35,000 employees. The exact positions that will be trimmed have not yet been determined, and the cuts will be spread across a variety of job titles, a spokesman said.

The company said that it expects 1,200 of the 1,900 cuts to be in operations, while 350 will be in middle-management positions and another 350 will be the result of undefined “business unit efficiencies.” Nortel expects savings from the cuts to total $175 million by 2008.

Mexico and Turkey were chosen as the locations of the new centers because of their strong labor pools, cost competitiveness and proximity to major customers, Nortel said. In all, the company wants to consolidate 100 sites globally into fewer operations centers that focus on delivering engineering, product and technical support, order management, purchasing and data analysis, Nortel said.

Nortel will eliminate pension plans for current employees and move affected employees to “defined contribution” retirement plans, to which Nortel will contribute 2% of an employees’ eligible earnings for a retirement fund. In addition, Nortel will provide a 50% match on employee contributions of up to 6% of eligible earnings, for a total maximum of a 5% employer contribution.

Current retirees will not see any change to their pension income in the U.S. and Canada, although the cost-sharing formula for medical benefits will change for some U.S. retirees.


Posted by Elvis on 06/27/06 •
Section Telecom Underclass
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