Industry Thought Leadership

The telecommunications industry accumulates vast amounts of data, including call, data transfer, user location and device information.

This data is a valuable asset with significant potential for revenue generation. Understanding how to leverage and monetize this data is becoming a key success factor for telecom operators and related businesses.

In addition to traditional methods of using data to improve services and customer experience, there are direct ways to monetize it that allow operators to actively engage with other industries and advertising platforms.

Telecom operators collect and process vast amounts of data on a daily basis, which can be classified into several major categories:

1. Call metadata: This data includes information about the call start and end time, duration, caller and called number, and the location of the device during the call. Call metadata can be used to analyze communication patterns between users and optimize network infrastructure.
2. Location data. Using signals from cell towers and GPS data, carriers capture the location of subscribers. This data is used to provide geo-dependent services such as local offers, analyzing population movements or planning the development of network infrastructure.
3. Internet usage: Operators track the amount of data transferred, websites visited, application usage and time spent online. This information is used to model user needs, improve connectivity, and develop tariff plans that meet subscribers' needs.
4. Text messages and social media data: Collecting information on text messages and social media activity can help operators understand users' communication preferences and analyze the use of certain resources and applications.

But not all service providers already know how to process this data. The very process of collecting such data requires the ability to work with traffic (DPI) and turn this data into ready-to-use datasets.

In addition to traditional methods of using data to improve services and customer experience, there are direct ways to monetize it that allow operators to actively engage with other industries and advertising platforms.

Given that personal data laws do not allow any subscriber information to be shared, the focus should be on creating analytics products based on this data.

Telecommunications companies can monetize their data by selling aggregated data and detailed analytical reports to various industries. For example, data on website visits and user locations can be useful to retailers, travel agencies, and city planners. Such reports can provide information on traffic to websites, popularity of different locations and consumer movement trends, which helps companies optimize their marketing strategies and grow their business.

Advertising via SMS channels: Operators can use the data collected to create personalized advertising messages sent via SMS. Several sources are used to generate this targeting: visits to resources, calls and geolocation.

The monetization of telecom data represents a significant opportunity for telecom operators, especially in rapidly developing regions such as the Middle East, Africa and Southeast Asia.

But the SMS channel is not infinite. Therefore, telecom companies can analyze the behavior of their users and on the basis of this create look-alike profiles, which can then be uploaded to the advertising cabinets of platforms such as Google and Meta (Facebook). This allows advertisers to more accurately target potential customers who have similar interests and behavioral characteristics to existing customers.

Telecom data provides telecom operators with indirect monetization opportunities that can not only improve service quality, but also lead to the creation of new products and services.

Operators can use user data analytics to create personalized advertising offers. For example, based on the analysis of communication usage patterns, the operator can offer users specialized tariff plans or additional services that best suit their needs. For example, unlimited offers on social networks or gamified applications.

Quality of Service Optimization: The use of traffic consumption data helps operators optimize their network infrastructure. By analyzing when and where consumption peaks are highest, companies can adjust resource allocation to provide more stable and faster connections.

Operators also can partner with companies in other industries to provide data for joint research or product development. As an example, working with companies in the automotive industry to develop communication systems for connected cars or with financial institutions to improve mobile payment systems.

The monetization of telecom data represents a significant opportunity for telecom operators, especially in rapidly developing regions such as the Middle East, Africa and Southeast Asia.
However, along with the opportunities come certain risks and limitations associated with the use of this data. These risks include regulatory and legal restrictions, privacy and data protection issues, and the technical complexities of processing and analyzing large amounts of data.

Processing huge amounts of data requires specialists to work with this kind of infrastructure and generally build data centers.

Regulatory and legal constraints aside, in the Middle East, Africa and Southeast Asia regions, the legal framework for data protection is evolving, and therefore operators need to keep a close eye on developments to avoid legal violations.

Data protection regulations in these regions may not be as strictly regulated as in Europe or the US, but the trend towards stricter regulations is already underway.

Data monetization in telecommunications offers great opportunities for operators, but requires careful risk management. Selling data and creating new services based on it can significantly increase revenues and build customer loyalty.

Operators must ensure that data is protected from unauthorized access and leaks. This is especially important in regions with a high risk of cyberattacks. The use of advanced encryption technologies and regular security audits are key elements in data protection.

Data monetization in telecommunications offers great opportunities for operators, but requires careful risk management. Selling data and creating new services based on it can significantly increase revenues and build customer loyalty.

However, it is important to comply with data protection laws and invest in technology to handle large amounts of data.

In the future, with the development of technologies such as artificial intelligence, the possibilities of using data will grow, offering even more personalized services and innovative products. This will open up new avenues for collaboration between industries, such as healthcare and automotive. For example, it is already possible to largely automate the processes of detecting apps and websites in traffic by applying AI tools. And this is just one example.

So telecom companies that know how to manage data and comply with legal requirements will be at the forefront of innovation and can maximize the use of data as a strategic resource.