The Tightrope of Trust

FCC TACKLES location-based privacy

Stakes are high in the development of wireless technology in the United States. Wireless telecom carriers are rapidly developing location-based services that will pinpoint consumers' locations with Global Positioning Service (GPS) technology and market products to them based on their proximity to retail outlets. However, wireless providers and marketers need to gain and maintain mobile users' trust or face strict government regulation and loss of potential revenue sources.

Travis Larsen of the Cellular Telecommunication and Internet Association (CTIA) said, "We've watched the Internet very closely and the wireless industry decided that we needed to take a different approach. We laid out privacy principles before the technology even existed and submitted them to the Federal Communications Commission (FCC) in October 2000."

David L. Sobel, general counsel of the Electronic Privacy Information Center observed that "Congress said that the provider would have to obtain prior express authorization of the user before disclosing information. Now we have to figure out what that means."

"To its credit, CTIA at least has asked for some FCC involvement," Sobel admitted. "But I think we'll get a better sense of the industry's position as the FCC proceedings get underway." Sobel would like to see privacy rules that put the user in control. The FCC is currently reviewing CTIA's proposal.

According to Jacob Christfort, vice president and CTO of OracleMobile, "Too much regulation up front could thwart the business value of this technology. Many users want to get the services and reveal where they are." Christfort believes users should have control over their location information. (Click here for the interview with Jacob Christfort.)

The FCC's Enhanced 911 (E911) rules require that carriers' systems have the ability to find a 911 caller's location within a 125-meter radius by October 2001. But many in the industry concede that some carriers won't meet this deadline.

However, once a carrier is E911-ready, a host of companies are waiting to provide platforms for a variety of location-based services. BeVocal Inc.'s open development platform delivers personalized information to any device. SignalSoft Corp.'s BFound software lets mobile users reveal their location to subscriber-approved co-workers, friends, or family members. OracleMobile's platform supports location-based services as well.

In the meantime, the industry must maintain a delicate balance between self-regulation and FCC involvement on the tightrope of consumer trust.

- Chuleenan Svetvilas In this Issue: