There are a handful of comments here giving CarrierIQ the benefit of the doubt, because the video did not show CarrierIQ sending the logged data over the network.

If you're still inclined to give them the benefit of the doubt, just read the CarrierIQ website. Their ENTIRE BUSINESS MODEL is based on collecting data about mobile phone users!! Here's a choice excerptI found on their website after browsing their site for 30 seconds[1]:

Carrier IQ's Mobile Service Intelligence Platform (MSIP)...receives raw data (known as Metrics) from phones and converts them into reliable, repeatable Measures which feed into analytic applications.

Or you can read this comment from a discussion last week where a CarrierIQ recruiter told an HN member that they collect 10s of gigabytes of data PER DAY.[2]

These guys are indeed collecting RAW DATA from actions on your phone. There are tremendous opportunities for abuse here, should CarrierIQ decide to do so. CarrierIQ in blatant violation of privacy norms and could do enormous damage to national security of many countries, conduct corporate espionage, or simply violate the citizens' expectation of privacy when using their phone.

This is dangerous and should be stopped immediately.

1. http://www.carrieriq.com/overview/mobileservice/index.htm 2. http://news.ycombinator.com/item?id=3264264