How Valuable is ISP User Data?

Many of us have heard for decades that telcos and ISPs have loads of data that can be monetized in some way, provided they have the right tools to do so, sometimes on an aggregated basis and sometimes using personally-identifiable information. 

Perhaps the most-logical source of possible value is customer usage and behavior, both in an aggregated and “not personally identifiable” sense as well as in an identifiable way if customers grant permission for use of their data in that way. 

And most of that data, in turn, is directly generated by customer browsing and use of social or communication apps, more than calling, texting or location. 

That presumably includes a mix of structured and unstructured data including location, device types, browsing history, usage patterns and payment information.  Some or much or all of that information also can be sourced from third parties as well, so that sort of data is not unique. 

Proponents sometimes claim that ISPs and telcos have “demographic” data. Some of us would argue they do not. They know household or subscriber addresses, and might infer something about demographics from the number of accounts in use. But some of us would argue telcos have little actual demographic information on their customers. 

ISPs, on the other hand, do have data on browsing history that might be monetized at an aggregate level. Again, though, similar or the same data can be supplied by other entities (search engines, for example). 

ISPs do have data related to operation of their networks, with monetization indirectly related to mining of that data (reduce operating costs or capital investment). 

Some will argue that ISP-owned internet of things sensors will create additional monetization possibilities, and that is true. The bigger questions concern the amount of potential revenue upside if the services and devices are not owned by the ISP. 

Still, according to a U.S. Federal Trade Commission report, “many ISPs have access to 100 percent of consumers’ unencrypted internet traffic.” Also, “many ISPs can track consumers persistently across websites and geographic locations.”

“A significant number of ISPs have the capability to combine the browsing and viewing history that they obtain from their subscribers with the large amounts of information they obtain from the broad range of vertically integrated products, services, and features that they offer,” the report says. 

It might not be wrong to argue that it is the value of combining their own data with third party information stores that creates much of the value of data mining for ISPs.