"We're as surprised as anybody to see all that information flowing," Andrew Coward, Carrier IQ's director of marketing, told CNNMoney in an interview. "It raises a lot of questions for the industry -- and not [only] for Carrier IQ." ...Coward insisted that the Carrier IQ software was not responsible for the logging of keystrokes and other user data. He said the program does not need to log that kind of information to serve its purpose of transmitting network diagnostic data to the phone's carrier.
Instead, Coward said the logging was happening at the operating system level, likely as a result of add-on software installed by the handset manufacturers. But he couldn't say for sure.