Many AT&T customers were up in arms over last week’s announcement that the company charges users more if they opt out of a program that tracks their online search habits and then sells the data to third parties for targeted advertising. And rightly so.
During a new product roll-out in Kansas City last week, AT&T introduced new users to GigaPower, its ultrafast fiber optic network. According to the company, users can download an HD move in 36 seconds and an HD TV show in 3 seconds using the GigaPower network. But in addition to rolling out the new network, AT&T also unveiled how it will charge users for this new ultrafast option, and that’s when things got a little hairy.
It seems as though AT&T will charge for GigaPower using a staggered-pricing option, allowing users the opportunity to elect to pay prices starting at $70/month for Internet speeds up to one gigabit per second, or to forego opting for this “premium offer” and paying $29 more per month for the other payment option. So, what is the big difference between the options? According to company officials, at the reduced rate, customers elect to participate in “AT&T Internet Preferences,” an analytics program that tracks the search engine histories of users and sells that data to advertisers for more targeted offers. And these sales techniques aren’t just occurring as online ads. No, the advertisers can obtain such personal information as mailing and e-mail addresses for users.
As explained on the AT&T website, “For example, if you search for a car online, you may receive an email notifying you of a local dealership’s sale.”
And that’s why customers are upset. Many see this as a clear violation of privacy. What’s more, the company won’t guarantee that customers who elect to pay the additional $29 monthly aren’t being tracked online as well. Regardless of whether or not someone opts to participate in the company’s ad targeting program, AT&T is still collecting the data about its customers’ Internet usage.
Gretchen Schultz, an AT&T spokeswoman, recently stated in an email, “When customers choose not to opt in to the premier offer, they will not receive individually tailored advertising. As described in our privacy policy, AT&T may continue to collect web browsing information for limited purposes such as network management.”
At this time, AT&T’s GigaPower service is offered in Texas, North Carolina and now Kansas City, but the network continues to grow with planned expansions in California, Florida, Missouri, Illinois, Tennessee, and Georgia.
It remains to be seen just how many people opt for the more expensive option, given that AT&T still won’t promise total privacy. In a day and age when almost nothing is private anymore, many are left wondering: “at what cost?”
Via New York Times and USA Today
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