Thursday, 11 October 2012

Telefonica sets up for data analytics...and the expected headlines ensue

Telefonica launched a data analytics division this week. All the details are here. I don't think there's much doubt that making use of all the 'exhaust data' that MNOs have access to is going to be a key revenue generator. The way in which this might manifest itself for M2M is an area where we're focusing an increasing amount of attention. Doubtless this is a potential gold mine for operators and other players. NEC's Connexive platform for instance is specifically focused on supporting this kind of analysis.

The big concern is, of course, around privacy. There have been numerous examples of service providers getting into trouble for reselling users' data (usually to the police) even in aggregated and anonymised format. And there is the potential for negative publicity. I already saw one emotive headline on the topic along the lines of "Telefonica to resell user's data". Not exactly accurate, but that is how it might be perceived.

This kind of analytics is an important revenue stream and Machina Research believes that it will actually be a driving force for M2M, but Telefonica and others that follow them have to be very careful indeed about how it is handled. More to come from us at Machina Research on this topic.

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