Consumer Data and Privacy 2.0: Give Customers the Power

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Summary: What do consumers really want from their data? And how should telcos go about meeting these needs for a profit? The answer is simple: give customers the power. An extract from our report on the recent Privacy 2.0 Summit.

...Members of the Telco 2.0TM Executive Briefing Subscription Service can download the analysis hereNon-Members, please see here for how to subscribe, or email  or call +44 (0) 207 247 5003.


This is a selected extract from the full Telco 2.0 Analysis of the 1st Privacy 2.0 International Summit, ‘Unlocking the Value of Consumer Data’, held 3-4 Feb 2010, at the Liberty Hotel, Boston MA, USA, which covered:

  • Empowering Consumers
  • Re-invigorating the telecoms business model
  • Reducing Friction in the ‘digital economy’

It was an invitation-only roundtable event for 60 representatives from global leadership organizations across telecommunications, technology, finance, advertising, academia and government.

Overall Question to be addressed:"What is the role of the telecoms industry in the management and governance of consumer data, identity and privacy, to stimulate the growth of the ‘Digital Economy’?”


The Summit used a mix of specially commissioned stimulus presentations, panel discussions, plenary and small group brainstorming using Telco 2.0’s interactive ‘Mindshare’ format. The event was facilitated by Simon Torrance, CEO, Telco 2.0 Initiative, and produced in collaboration with the Massachusetts Institute of Technology (MIT) and Nokia Siemens Networks.

The extract in this Analysts’ Note covers new consumer research and recent findings on how companies can build and maintain trust in an online environment. 

New Research: Consumer Data & Privacy Study

Ulrich Hanke, Head of Customer and Consumer Insights, Nokia Siemens Networks, presented highlights of a major quantitative research survey, comprising 9,200 interviews in 14 countries globally in September 2009. The objectives were to understand consumer privacy issues, their approach to sharing data, and willingness to share given certain benefits and conditions.

Figure 1 - Highlight Global Statistics on Consumer Attitudes

Ulrich made the point that there is a degree of inconsistency between consumers’ statements and their actions. For example, he said the 52% that claim to be very selective actually show similar behaviours to everyone else in terms of what they are prepared to share with whom (e.g. personal data with online communities).

26% of the sample had already experienced privacy violation.

Figure 2 – Industry Candidates for ‘Trusted Service Providers’

While no contender is appears outstanding from all others as an “Trusted Identity Provider’, ‘CSPs’ make ideal contenders, second only to banks – but notably also only just ahead of Google. In Ulrich’s view this presents a great chance.

Figure 3 – 46%-58% say CSPs could be a useful Personal Data Intermediary

Between 46% and 58% of consumers thought that CSPs could be a useful partner in managing the circulation of their personal data.

To get greater insight into the conditions which determine consumer’s willingness to share their personal information, NSN tested 14 use cases, 9 describing an enhanced experience, and 5 trading-off benefits. The research asked consumers to rate each one, first with benefit only, and second, with description of the data the consumer would need to share. By comparing the responses, NSN have created a framework describing the factors determining the Attractiveness, Barriers and Conditions of sharing data in different circumstances.

To read the rest of the analysis, covering...

  • Factors driving consumers’ willingness to share Data
  • Hierarchy of Consumer’s Perceived Sensitivity by Data Type
  • A Trust Model for e-Commerce
  • Google and Facebook: “Privacy is History”
  • Nine Key Drivers of Trust in E-Ecommerce
  • Trust needs proof, user-control, consistency, and good communications
  • Panel Discussion and Q&A – how do customer needs differ?
  • VOTE: How well do Telcos understand consumer attitudes to use of their data?
  • In Twitter we Trust?
  • ‘Big Brother has left the building’
  • Consistency is Subjective
  • Telco 2.0 ‘Take Out’ – Give Customers the Power

...Members of the Telco 2.0TM Executive Briefing Subscription Service can download the analysis here. Non-Members, please see here for how to subscribe, or email or call +44 (0) 207 247 5003.