Sprint has responded to the outcry surrounding Carrier IQ by disabling the diagnostics software on all handsets used on its network.
The company says it has listened to the concerns of customers who were spooked by reports that hardware manufacturers and networks were able to collect detailed keystrokes from handsets.
"We have weighed customer concerns and we have disabled use of the tool so that diagnostic information and data is no longer being collected," the network told the Mobile Burn website.
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"We are further evaluating options regarding this diagnostic software as well as Sprint's diagnostic needs."
It remains to be seen whether the network is able to remotely disable the software or whether it will require an over-the air software update.
Geek.com claimed in a report: "Sprint has ordered that all of their hardware partners remove the Carrier IQ software from Sprint devices as soon as possible."
Sprint's decision comes over a week after a widespread outcry and a slew of lawsuits, alleging that Carrier IQ was capable of recording SMS message keystrokes.
The developers have since explained that its software is only ever used as a diagnostics tool to log errors and assist networks and manufacturers improve their offerings.
Samsung and HTC face wiretapping lawsuits, while Apple has admitted using Carrier IQ on previous versions of iOS, but ditched the software for iOS 5.