All your personal data....belongs to us
What a cracking way to ensure that the customer wont be tempted to churn to another provider.
If all of your phone book and whatever (I know some people save texts but I don't) is stored on O2's servers and they of course don't provide an export function thus making it difficult to get info off most average users wont bother switching provider because its too much hassle thus reducing the churn rate.
Also the Paris Hilton sidekick incident shows how vulnerable these systems are to both internal and external comprimise.
Ok I dont have any famous friends and am not famous (most famous people aren't worth knowing anyway in my opinion) but the contacts I do have wouldn't appreciate their home and mobile numbers being spread over the web or sold to advertisers.