Yes, it's true: Three of the largest cell phone carriers in the U.S. use Carrier IQ's controversial key-logging software, but, they insist, do not use it to monitor subscribers' activities.
A statement from Sprint explained that the software can only "analyze ... network performance and identify where we should be improving service," but "cannot look at the contents of messages, photos, videos, etc. The information collected is not sold and we don't provide a direct feed of this data to anyone outside of Sprint."
Meanwhile, Verizon has maintained that it does not put Carrier IQ or similar software on its phones.
Despite their assurances to the contrary, many privacy advocates are concerned that Carrier IQ is violating the law -- including federal wiretapping laws. While this mess gets sorted out, members of the Senate have asked Carrier IQ to clarify to the subcommitte on Privacy, Technology and Law exactly what its software can -- and can't -- do.