Many businesses are learning the value of big data and mobility for improving business efficiency and customer experience. However, not much has been said about how to monetize data itself, not simply to enhance sales, but as a value-added service offering.
With the increase in smartphone users, who often use a number of apps to browse the internet, mobile network providers now have access to a large amount of data. The data reveals much about the mobile network provider’s customers, including:
- Customer preferences
- Smartphone application usage
- Customer locations
- Items and services customers may be looking for
As mobile and Internet of Things (IoT) devices increasingly allow customers to look up information no matter where they are, more and more data is generated. Telecom companies, many of whom maintain a mentality of network services exclusively, may not realize that the data already being collected and stored for use in improving a Telco’s services, can be useful to third-party partners.
Search engines and social media platforms are currently using collected data to personalize advertisements to their users. Using the same techniques, telcos can easily do this as well, a strategy that would benefit both telcos and their partners. This can then lead to the ability to provide the full management of their partners’ IoT or Mobile to Mobile (M2M) requirements.
Every machine that connects to the internet will need a method of collection, processing, and storage of data. This is a list that can include not only smartphones, but also:
- Home appliances
- Wearable devices, such as smart watches
- Smart meters
- Apps
- Home management systems
Telcos can even sell this service to new businesses who are just entering the IoT field, or sell the systems that will allow the new business to monetize their traffic on their own. While the initial investment in business and data systems may seem high, telcos may find that it pays off in the future, especially as the IoT continues to grow and expand.
While low-cost connectivity may be important to customers, it also isn’t likely to generate high revenues. By also offering value-added services that harness the mobility and power of the IoT, telcos will continue to maintain their competitive edge. Some telcos are already beginning to do this by teaming up with:
- Fleet management, which uses location data
- Medical monitoring
- Connected car services
- Energy utilities
In the future telcos may also need to partner up with competitors, to expand the telco’s regional coverage. This will help to bring in the international market, which is currently struggling with having to work with multiple companies in multiple different markets.
By harnessing the mobility of the IoT, and data already being generated by smart device users, telcos can continue to grow and expand their business.
