Qwest ‘opts out’ of sharing customer information

Qwest Communications today announced it would cease sharing customer proprietary network information (CPNI) in response to customer concerns and misperceptions concerning how that information is used.

Chairman and CEO Joe Nacchio said Qwest would refrain from sharing CPNI between sister divisions until the Federal Communications Commission (FCC) completes its proposed rulemaking on the matter. In addition, Nacchio named David Heller to the newly created position of chief privacy officer. Heller previously was Qwest’s vice president of risk management.

Nacchio said the decision means customers will no longer need to notify the carrier--a practice known as “opting out”--to prevent Qwest from sharing their CPNI. He said Qwest will re-examine its decision after the FCC rules on the matter. The Telecom Act prevents carriers from sharing CPNI without the customer’s permission, even between internal divisions.

In 1998, the FCC ruled that carriers wishing to share CPNI could do so only for customers who had opted in to the plan. Qwest successfully challenged the FCC rule in federal court, forcing the commission to revisit the matter. In September, the FCC issued an interim rule that allowed for the opt-out strategy that Qwest and other carriers have been employing.

Recently, Qwest came under fire from customers and the attorney general in Washington State over its opt-out plan. Customers complained Qwest was deceptive in communicating the opt-out opportunity and alleged a variety of problems with the toll-free number set up to handle opt-out requests. Attorney General Christine Gregoire instructed Qwest to rewrite flyers that had been used as bill inserts to communicate the opt-out plan.

“Our communication is not something we’re proud of,” said Nacchio. “We said things we didn’t mean to say, and we confused people. I’m clarifying things now.”

He indicated the carrier has learned its lesson in the matter and will do a better job of communicating this latest decision to its customers.

“This will be written in simple English,” he said. “I’d like to think that if I were a consumer, I’d be able to understand it.”

However, Nacchio said the flap in Washington State had no specific bearing on the carrier’s decision to alter its CPNI strategy. Instead, he was worried that about 5% of the carrier’s customers had expressed concern over the use of their CPNI--“a big number,” he said--many of whom had become “misinformed” that their private information would be shared with third-party telemarketers.

“We wanted to take this issue off the table, because it was obfuscating other more important issues,” he said. “We’re going to be talking to our customers soon about long distance, and we want them focused on that.”

Nacchio said he understands his customers’ privacy concerns, but also believes the free flow of information is crucial to the economy.

“Restricting the flow of information could produce a drag on the economy, and we believe lots of our customers would be better if we could share this information [internally],” he said. “But we don’t want to set policy. We want to concentrate on serving our customers well and bringing new and better services to them.”