It's the only way to know what you're giving away.
Several companies have access to your data and each handles it differently.
Pre-installed software can have access to everything you do on your phone.
Another thing to keep in mind is that every policy you agreed to is in effect at the same time. Google might not sell information about the times you visited Jamba Juice and paid with your phone, but that doesn't mean the company that made your phone or the company that you bought it from won't. All parties involved with access to your information get to do what you agreed they could do with it. Thankfully, this is less of an issue with apps you installed because they only have access to their own data. Although, sometimes the data these apps collect can be ridiculous.
So, what can you do if you're concerned about who can see what and the things they can do with it once collected? Unfortunately, the only answer is to read and understand the things you're agreeing to before you click Yes. Most policies from phone makers and carriers aren't horrible once you understand them.
The company that made your phone collects a lot of data about how you use it so they know how to make the next one even better. They may share information with other companies in the world of mobile hardware or software development, but they're not selling your phone number to IRS scammers. Network providers have lengthy agreements about services and documents about software, but again these are designed to see how you use them so they can be improved. It's are not out to get you, it just wants to make more money by offering things people just like you want.
We suggest you read before you agree to anything and if you don't understand something you should ask. A quick question via email or a call to a customer service number should be all that's required to answer any questions you have. Once you've agreed to it, there's not much you can do.
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