David Kravets for Wired, emphasis mine:
Though the software is installed on most modern Android, BlackBerry and Nokia phones, Carrier IQ was virtually unknown until 25-year-old Trevor Eckhart of Connecticut analyzed its workings, revealing that the software secretly chronicles a user’s phone experience — ostensibly so carriers and phone manufacturers can do quality control.
But now he’s released a video actually showing the logging of text messages, encrypted web searches and, well, you name it.
From there, the data — including the content of text messages — is sent to Carrier IQ’s servers, in secret.
Another potential failure of “open” systems: when a system is open to someone whose interests don’t line up very well with yours, like a cellular carrier, and then it’s closed and handed to you, you have no way to know that they didn’t sneak in huge security holes and privacy violations behind your back.
This is like a housing developer installing secret cameras in the bathrooms before selling the houses. For quality control, of course.