Summary:

Network providers have lots of data on their customers. Network providers thought they could sell that data to ad networks. But given mounting privacy concerns and a great desire not to upset or lose customers by selling their personal data, this revenue model is not acceptable.

Network providers have lots of data (e.g. usage, location, interests) on their customers. Mobile advertising networks are looking for better ways to target consumers. Originally, network providers thought they could just sell that data to ad networks. But given mounting privacy concerns and a great desire not to upset or lose customers by selling their personal data, this revenue model is not acceptable.

That doesn’t mean that network providers can’t leverage this data to create value for their customers and revenue for themselves.

Many mobile consumers are very eager and willing to opt-in to personal information monitoring as long as the benefit far outweighs the cost. For example, the abundance of check-in programs on mobile devices allow you to volunteer your location or tag objects around you. The more “checking in” a mobile consumer does, the greater benefits they can get from connecting to people who are close to them, or receiving prizes and coupons through an application’s reward system.

Many of these applications are taking off today because of the increase of real-time information to and from the mobile phone. In addition, network providers are selling devices with better targeting information, thereby making it easy for the consumer to send and retrieve personalized data about their interests, friends, and location. Advertisers can present offers and coupons in times of need to capitalize on the physical whereabouts and interests of the mobile consumer.

Read more about generating new revenue through new carrier business models with Alcatel-Lucent’s application enablement program.

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