Facebook scandal creates opportunity for cellcos

The Facebook and Cambridge Analytica data harvesting scandal has eroded trust in digital service companies, which has opened a window of opportunity for mobile operators, according to new research from Openet.

A survey of consumers in the Philippines, the UK, US and Brazil found that more than 50% of consumers are now less likely to share personal data with digital services companies.

Consumers now see their mobile operator as more trustworthy than both social media platforms and digital services companies such as Netflix, Spotify and Skype.

More than nine in ten (92%) consumers would be happy to consider mobile operator delivered digital services as an alternative.

In addition, 66% would now prefer to pay for services if it means more control over their data, which could even signal the beginning of the end of the Freemium era, Openet said.

Openet CEO Niall Norton noted that despite having an abundance of subscriber data, mobile operators have traditionally had a much more conservative approach to making use of this data compared to digital service providers.

“For a long time, this conservative approach to data use has been used as an unfavorable measure for operators’ digital efforts, especially in comparison to other digital-first companies. But times are changing and it’s clear that consumers expect more if they are to hand over personal data in exchange for services,” he said.

“Mobile operators have earned the right to answer this call. But to be successful, they must learn from the mistakes made by social media and digital service companies alike. Transparency around data collection and opt-in processes are now top priorities for consumers. Operators must bear this in mind when seizing new digital opportunities.”