| hmmm... The students in the experiment gave their consent to be tracked but will you have the same option? Will this be an unconfigurable 'feature'? If the data is encrypted and stripped of personal information BEFORE it leaves the phone AND users have the option to opt out of the monitoring (at the phone level) and can control when the monitoring is done, then it is a clever idea.
On the other hand, couldn't cities gather traffic information by monitoring the load on the cell towers next to the highways instead of through the phones reporting in? The information wouldn't be as precise but with statistical analysis I think it could still be useful - and without the privacy concerns.
I agree with birdfeedr 
The potential for abuse and misuse is enormous.
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