Verizon Wireless is proud of its new “business intelligence” initiative that will collect your browsing habits and online behavior, aggregate it with other customers similar to you, and then package and sell it to anyone willing to pay.

For your convenience, Verizon has automatically opted you in to their Precision initiative, and it is up to you to make the effort to opt out.

“Companies are always seeking opportunities to understand and act on their customers’ preferences, and Verizon is in a unique position to offer information and insight in a format that can help,” said Colson Hillier, vice president, Precision Market Insights, Verizon Wireless.  “At the same time, protecting customer data and safeguarding privacy have always been high priorities at Verizon, and we give our customers choice and control over their privacy preferences.”

The first set of services from Precision will help brands and companies such as outdoor media companies, sport venues, and other marketers, to understand the characteristics of the audiences for their products and services so that they can better reach and serve those customers.  Business and marketing insights use information from Verizon’s mobile network that is gathered and combined with demographic data, then aggregated to provide real insights into consumer behavior.  Data associated with the preparation of business and marketing reports is anonymous and secure and will not allow the identification of an individual.

Precision plans to introduce additional services including one that will help brands tailor the type of advertising customers see on their mobile phones, also known as relevant mobile advertising, and others that will help marketers create opportunities to better address their consumers and their consumers’ needs.

Still, Verizon’s lucrative new program delivers all of the benefits to themselves, while sticking you with an ever-increasing mobile phone bill. If Verizon Wireless wants to collect your browsing data and other “aggregated” information to sell to advertisers, then the company ought to be paying customers to participate. As usual, they keep all of the money for themselves.

Verizon Wireless obfuscates this privacy invasion with technobabble. They call it: Customer Proprietary Network Information (CPNI), ironic for a program that sells “precision” information to Verizon’s clients. In fact, Verizon tracks your location, collects ongoing statistics that can be used to predict where you will be at any given time, and offers that information up to mobile advertisers. They in turn deliver you “relevant advertising,” that eats your limited data allowance. It represents a win-win for the company and advertisers. Sell your data and then collect even more revenue as advertisers pelt you with unwanted ads.

But customers do not have to be the losers. You can deny Verizon their latest Money Party until they share some of the proceeds with you:

1. Login to your account at Verizon Wireless.
2. Scroll to “I want to…” and find “profile.”
3. Choose “Manage privacy settings.”
4. Note the section: “Customer Proprietary Network Information”.
5. Choose “Don’t Share My CPNI” for each relevant cellular number.
6. Make sure to click the “Save Changes” button when finished or your choices will not be saved.

You may want to also block Verizon from cashing in on your data for their Business and Marketing Reports and Relevant Mobile Advertising. Those settings appear just below the CPNI section. Make sure you “Save Changes” for each section.

Not a Verizon Wireless customer? Look out. Your carrier may be packaging and reselling your browsing habits as well.

• Sprint: Collects and markets subscriber data. Login to your Sprint account and select “My Choices” to opt out or call 1-855-596-2397 from each of your mobile devices.
• AT&T: Collects and markets subscriber data. Visit AT&T’s privacy options after logging into your account and opt out as needed.
• T-Mobile: Legalese overload. Would the average customer understand this: “We may obtain your consent in several ways, such as in writing; online, through ‘click-through’ agreements; orally, including through interactive voice response; or when your consent is part of this policy or the terms and conditions pursuant to which we provide you service. Your consent is sometimes implicit.”

AT&T has finally gotten around to following Verizon Wireless’ footsteps to fewer customer returns as it joins Big Red cutting “no hassle” returns to just two weeks.

Starting this month, if you return a phone to AT&T within 14 days, the company will charge you a $35 restocking fee or 10% of the purchase price for accessories over $199. Return it after 14 days and you may not be hassled, but you will be out as much as $325.

Consumers (including Individual Responsibility Users) – Device/Accessory Returns

Cosmetic blemish items are considered closeout items and are not eligible for return or exchange. 

Apple’s iPhone 5 Wi-Fi bug is showing up on several wireless networks.

Wireless companies with usage caps are in the money — your money — if you happen to own Apple’s iPhone 5. A serious bug afflicting the phone’s ability to connect and hold a Wi-Fi connection when using certain wireless security protocols is chewing up customers’ data allowances and exposing them to overlimit fees, even when they think the phone is connected to a free use Wi-Fi network.

So far, Verizon Wireless has confirmed the problem is impacting their customers, but our readers report problems with AT&T and Sprint iPhones as well.

“Under certain circumstances, iPhone 5 may use Verizon cellular data while the phone is connected to a Wi-Fi network,” said Torod Neptune, a spokesman for Verizon. “Apple has a fix that is being delivered to Verizon customers right on their iPhone 5. Verizon Wireless customers will not be charged for any unwarranted cellular data usage.”

Stop the Cap! reader John Pozniewicz thinks that is nice of Verizon, and wonders when AT&T will start dealing with the nearly $100 in overage fees he has already run up on similarly afflicted iPhone 5 smartphones he bought just last week.

“As best as I can tell, the problem seems to relate to the type of Wi-Fi security protocol your router has enabled,” Pozniewicz reports. “Many in the Apple community forums and I both agree the most likely culprit is AES encryption.”

Sprint customer Halle Thompson also wrote Stop the Cap! yesterday reporting her Sprint iPhone 5 was unable to hold its Wi-Fi connection either, forcing her to deal with Sprint’s slow 3G network, even when at home.

“Thank goodness Sprint doesn’t have a usage limit and overage fees or they would own my house by now, because I use my phone for everything,” Thompson says.

Thompson switched off her router’s wireless security and the problem disappeared, but now her Internet connection is open to everyone in her apartment complex. Pozniewicz spent the weekend experimenting with wireless security protocols and quickly found AES caused his Wi-Fi connection to become unstable.

If your readers are having the same problems I am, here is a workaround that will keep your router reasonably secure and accessible until the pointy heads at Apple figure out this disaster:

Recommended Security Settings:

• WPA only (least secure)
• WPA2 only
• WPA or WPA2 with TKIP

Not recommended:

• AUTO – AES
• WPA or WPA2 with AES enabled
• WPA or WPA2 with both TKIP and AES enabled

Verizon Wireless has told customers it will credit back any overage fees incurred as a result of the bug, but only if they ask. Customers should also demand Verizon reset their allowance or at least note their account regarding the problem. Customers should request credit for overlimit fees for both September and October, because early reports indicate the software update designed to fix this problem has not worked in all cases.

Pozniewicz is having much less success with AT&T which so far has refused all comment on the debacle and has been unwilling to issue any service credits for overages. Pozniewicz is upset, noting he has only had his iPhone 5 for a week and it has already cost him and his company an extra $100.

“I am extremely careful about only using Wi-Fi for anything that will consume a lot of data, but my only clue there was a problem was when I noticed how slowly my so-called ‘Wi-Fi’ connection was performing at home and work and that is when I discovered it was not actually using Wi-Fi at all,” Pozniewicz says. “What is insidious about this is that the Wi-Fi connection is still showing on the phone display, even when I am actually using AT&T’s network.”

Thompson reports her phone does seem to initially connect to Wi-Fi, but then loses the connection seconds or minutes later, eventually switching to Sprint’s 3G or 4G cellular networks. Sprint’s unlimited data plan makes the issue just an inconvenience. For Pozniewicz’s company, which has a contract for a dozen iPhones 5’s with AT&T, the overlimit fees are really adding up. His employees are also quickly burning through their own monthly data allowances.

“AT&T is a pack of vampires and they don’t care about anything other than my money, even after talking to two supervisors, one of which implied I was either lying about the problem or an idiot,” he said.

Here is how iPhone 5 customers can check their data usage: Select Settings, then General, then Usage, then Cellular Usage to see what your phone reports you have used thus far. If the numbers seem wildly out of whack, contact your wireless carrier and let them know you may be afflicted with the iPhone 5 bug and have them note your account for future credit for any subsequent overlimit fees.

Verizon customers should have already received a software update in an effort to correct the problem. You can verify this by following these steps:

1. Select Settings, then General, then About.
2. Wait for the message “Carrier Settings Updated,” then touch OK.
3. Allow the update (if any) to install.
4. If your phone does not automatically restart after the update is complete, turn the phone off and then on again to complete the update.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/iPhone 5 Wifi connection issue.flv[/flv]

iPhone 5’s Wi-Fi problems documented by YouTube user “MNeuenswander,” who found changing the security protocol on his router seemed to resolve the problem.  (2 minutes)

Verizon Wireless is dealing with the appearance of fraudulent “look-a-like” websites purporting to offer special discounts and features for customers willing to give up account information that could expose them to future fraud.

In the most recent examples, “VZ for Me” and “It’s Fall at Verizon,” customers are asked to give up their Verizon login and phone information that could result in phone cloning and service theft.

The latest generation of phony websites are virtually indistinguishable from legitimate ones, with fully functioning web pages and depth of content. The only two giveaways:

1. The website does not use the appropriate URL (vzforme.com and itsfallatverizon.com vs. verizonwireless.com);
2. Once logged in, the website cannot actually divulge any account information it never had access to, unless the customer supplies it themselves.

News reports about the sites have triggered actions ranging from browser blocks, which warn about potentially fraudulent sites and Verizon Wireless’ own successful takedown campaign.

Consumers are advised to avoid any links found in e-mail messages or web pages that offer to take you to a company’s website. The safest way is always to type the web address yourself.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KIFI Idaho Falls Investigation Fake Verizon Wireless site targets S-E-I-D 9-23-12.mp4[/flv]

KIFI in Idaho Falls reports on its special investigation of phony Verizon Wireless websites phishing for customer data.  (3 minutes)

AT&T and Verizon: The Doublemint Twins of Wireless

Wireless carriers other than AT&T and Verizon Wireless have joined forces asking federal regulators to help level the playing field in wireless competition.

At this week’s convention of the newly-relaunched Competitive Carrier Association (CCA), Sprint, T-Mobile USA, Clearwire, C Spire, and more than 100 other small regional rural carriers joined forces in Las Vegas to sound the alarm about a wireless duopoly restraining competition and raising prices for consumers.

“Humpty Dumpty has been put back together again,” said C Spire CEO Hu Meena. “And while the identical twins sometimes agree to meet and discuss industry issues with other industry players, they seldom, if ever, support action that might better the industry as a whole.”

C Spire should know. The company filed a lawsuit against AT&T earlier this year claiming the phone giant manipulated its 700MHz band allocation to lock C Spire customers out of getting access to the latest smartphones.

“At some point, and that time is coming, regulators and politicians are going to have to acknowledge they have a choice to make: they are going to have to decide whether the communications industry, the fundamental driver of the information economy, is going to be regulated by true, healthy competition or by the government,” Meena said.

In the last 20 years, rampant consolidation has reduced the number of national wireless carriers down to four — Verizon Wireless, AT&T, Sprint, and T-Mobile. Filling in the gaps are various regional providers, all who depend on one of the major four to provide reasonable roaming service for customers traveling beyond the service areas of smaller companies. Without reasonable roaming, competitors are left at a serious disadvantage.

Another major problem is access to the latest smartphones. Major manufacturers largely design and market cell phones for the largest four companies, often relegating smaller providers to sell older or less prominent phones to customers. When phones do not work on the spectrum acquired by smaller competitors, roaming becomes a problem.

But beyond those issues is the question of wireless spectrum. Traditionally sold in competitive auctions, the deepest pocketed companies traditionally win the bulk of frequencies, leaving competitors with less desirable spectrum that has difficulty penetrating buildings or requires a more robust cell tower network.

Meena

Members of the CCA recognize that mergers and consolidation can bring costs down through economy of scale, but in their eyes, AT&T and Verizon’s actions have promulgated a new paradigm for wireless on Wall Street: consolidation around a handful of wireless carriers is healthy; having too many competitors is inefficient.

“Consolidation can introduce business efficiencies,” said Michael Prior, CEO of Atlantic Tele-Network. “But government has a role in making sure that infrastructure is used in a way that works for the entire country. All we’re asking the FCC to do is to make sure there is a level playing field.”

Observers expect the CCA to ask the FCC to set aside spectrum in future wireless auctions exclusively for smaller carriers to help protect what competition still exists.

“There used to be dozens of railroad companies,” Prior noted. “But the government didn’t allow certain companies to develop rails that wouldn’t allow trains to interconnect to rails run by other companies.”

Meena warned the same thing could happen in the wireless industry.

“We know what happened in the first 20 years of the industry where we have had many healthy competitors,” Meena said. “There remains a false hope among too many carriers that the duopoly will one day become reasonable. But, we all know, whether we choose to admit it or not, that until all competitive carriers become fully committed to work together for open competition, the wireless industry playing field will remain harmfully tilted toward the duopoly. They will never give an inch unless and until they have to do so.”