Is Carrier IQ controversy the perfect storm to destroy operator trust?

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The mobile industry certainly isn’t the first to be hit with complaints about privacy intrusions. But the impact on a company’s – or an entire sector’s – reputation can be hard to overcome.

Truth is, blame for the Carrier IQ controversy falls equally across a number of players – including device makers, OS providers, operators and Carrier IQ itself. So it’s not fair to single out mobile operators here, especially when it appears that at least in some cases, individual operators can honestly distance themselves from the problem. That said, what will this do to consumer trust? Mobile users seem to be willing to suffer a loss of privacy if they can gain some value in return, from a just-in-time coupon to a personalized service or recommendation. And that’s just the start of this trust-for-value exchange, as the mobile ecosystem is just beginning to bloom and emerge. Indeed, you just can’t stop some users (bloggers, or heavy Facebookers, or Twitter spammers) from telling the world more about themselves than anyone would ever care to know. That said, consumers will make decisions about who to trust with their most trusted data, including identity, presence and location information. They have options. They could opt to keep it to themselves, and demand that it not be shared at all. Alternatively, they could share it directly with Web or mobile app or retail players. They could also choose to share it with middleman “brokers,” which might allow them to simplify how they share data and gain added value from that sharing. Who might play that broker role? Think Google, perhaps. Or banks or other trusted financial institutions. And certainly their mobile operator. That is if the “hysteria moment” that is the ongoing Carrier IQ controversy doesn’t convince them – fairly or unfairly – otherwise. The impact of the loss of that trust relationship for mobile operators would be huge, far-reaching and difficult if not impossible to counteract.


Is Carrier IQ controversy the perfect storm to destroy operator trust?