How to get a slice of the $3.6 trillion data market
Monetizing data is critical to CSPs’ success. Indeed, by some estimates it could be a $3.6 trillion market. At Digital Transformation World, a panel of experts discussed how telcos can get a piece of the pie. This article focuses on one participant’s advice.
16 May 2019
How to get a slice of the $3.6 trillion data market
Monetizing data is critical to communications service providers’ (CSPs’) success. Indeed, by some estimates it could be a $3.6 trillion market. At Digital Transformation World, a panel of experts discussed how CSPs can get a piece of the pie. This article focuses on one participant’s advice to operators.
Pramod Misra, Product Lead Mobile Analytics & Data Monetization, Vodafone Idea, kicked off the discussion. He stressed that the views he presented were his own, rather than his company’s, but they were no less compelling.
As his slide below shows, although telcos have a total of 5 billion users globally – more than double that of Facebook at 2.27 billion – they also have combined total debt of $480 billion. Facebook and Google are debt-free, and making fabulous profits.
Source: GSMA Mobile Economy Report 2018
4 ways to do it
As Misra said, monetizing data is critical to CSPs’ profitability, and so is a big data platform. He outlined the four proven areas in which operators can monetize data:
Location insights account for 25% of the total the four offer, using anonymized and aggregated data to provide information about the ‘right’ location for an enterprise, such as retailers and to inform the design of shopping malls and individual shops.
Some 40% of the pot comes from providing credit insights and scores to banks and financial institutions, based on data held about the behavior of customers.
Another 15% could come from targeted mobile advertising campaigns, such as knowing someone is keen on Bugatti cars or another hobby.
The final 20% could be raised from micro weather forecasting, using sensors attached to telcos’ infrastructure, such as towers, then backhauled to a central site for collation and analysis.
Misra said that the critical first step in monetizing data is to identify the right use case at the start and then set realistic deadlines for phases, such as three to four months. Next, collaborate with one partner and future customer for the project, and leverage the input of your internal enterprise team. Finally, a quick launch and ensure the solution you have developed can be scaled easily and affordably.
He stressed that data protection compliance and security are paramount – and so is strong, cross-functional project management. Misra concluded by highlighting the possible rewards, as shown in the graphic below.
