LONDON - Mobile phone company Motorola is developing new software which can scan customers' text messages and phone calls and pass on the information to advertisers.
Motorola said the software is capable of searching for specific words in text messages. It has the potential to detect words such as 'food' or 'hungry' and then send the mobile phone customers adverts for restaurants in their area.
Kenneth Keller, Motorola's chief marketing officer, said: "We have a technology which allows us to understand not only where that person might be, but also to understand what their interests might be. You figure out if the person is going for dinner or shopping and trying to find a particular retail outlet."Motorola also said the technology could be extended to voice calls.
The company acknowledged that the service raised privacy issues but stressed that it would only be used with customers' consent, possibly in return for cheaper calls.
Keller said: "I don't know how you would do this as an unsolicited effort."
The news has troubled both the Privacy International and The Information Commissioner's Office.
Simon Davies, the director of Privacy International, said: "We have deep concerns about this kind of technology. The phone companies may be talking about opting in to schemes but down the line it is more likely you will be penalised if you don't sign up."
Advertisers and mobile phone companies are keen to cash in on advertising via mobiles. The worldwide market is expected to top £5.5bn by 2011, according to Informa Telecoms and Media.
Blyk, the new mobile network aimed at 16- to 24-year-olds, recently introduced a tariff incentivising users to accept ads via their phone. Customers can sign up for "free credits entitlement" scheme and receive brand messages in exchange for a monthly free balance of 217 texts and 43 minutes.
Blyk keeps track of how many brand messages customers successfully receive during each 30-day period. Members who fail to receive most of the brand messages for three months in a row will have their Blyk membership terminated.
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