Ofcom is considering regulatory changes that would allow consumers to use their data to get better and more personalized broadband and mobile rates. The communications watchdog says it wants to make sure subscribers benefit from growing trends in data analytics and ensure its regulations keep abreast of changing behaviour. Custom pricing would give operators the freedom to offer different rates for different customers. These prices would be established according to the characteristics and circumstances of the individual in question, based on existing data and the predictive model.
Custom plans
While offering different prices to different customers is not a single concept, the use of data analytics and intelligence is. For example, operators could automatically apply discounts to students or offer rates with more minutes and less data to older customers. Ofcom says this approach can present both risks and benefits for consumers. Tailored pricing could result in more appropriate and profitable rates for customers and operators who would benefit from lower churn, increased trust, and potentially additional revenue. However, there is also a risk that fees will become more complex and some people will end up paying more in the long run if there is less incentive to switch providers, especially in the text-to-age era. change. Ofcom also wants to ensure that customers are treated fairly and that there is transparency in the use of their data. You have published an article describing the possibility of custom pricing, customer attitudes towards the practice, and potential concerns. In a related inquiry, Ofcom is also exploring how consumers can share their data with comparison shopping sites or other providers to receive fare recommendations. Hopefully this will make it easier for consumers to navigate the market, but again the regulator is interested in ensuring that customers are in control of how this data is used.