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February 2016 | www.tmforum.org

MONETIZING

CUSTOMERS DATA
MAXIMIZING THE POTENTIAL THROUGH PRIVACY AND PARTNERSHIPS

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MONETIZING CUSTOMERS DATA

Report author:
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Managing Director, Insights Research, TM Forum
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Page 4

The big picture

Page 6

Section 1
The potential and rationale for monetizing customers data

Page 12

Section 2
Understanding and protecting data privacy

Page 18

Section 3
What to do now

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MONETIZING CUSTOMERS DATA

Maximizing the potential through
privacy and partnerships

THE BIG PICTURE

Welcome to our new report on
monetizing customers data

MONETIZING CUSTOMERS DATA

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privacy and partnerships

ressed by high penetration of traditional services,

continued competition, and disintermediation by
over-the-top players, wireless service providers are
struggling to increase revenues. All the while most
service providers are sitting on a potential gold mine:
their customers data. Service providers have mounds of
it and increasingly are looking to monetize it. Moreover,
new tools and technologies have made it far more
practical and less costly to extract, model, enrich and
anonymize this data.
The fact is, sharing of wireless customer data, with
proper safeguards, can benefit not only the service
provider but also companies in other industries,
governments and ultimately the customers themselves.
Using the data, governments can better understand their
constituents, services and infrastructure; companies can
better understand customers and prospects; and users
can receive more relevant and timely information and
services.
The purpose of this Quick Insights is to aid service
providers in understanding the opportunities and
impediments for external monetization of customer
data, and to provide a series of recommendations for
approaching monetization.

Read this report to understand:

why service providers are so well placed
to leverage data on customers in the
digital economy
why and how sharing data done right is
a win for all parties, including customers
the size of the potential market
examples of where and how customer
data could be used by third parties
an exploration of the evolving regulatory
landscape and its implications
what you can do right now
models, guidelines and tools that are freely
available, immediately
We hope you enjoy this report in find it useful in your
planning for external data monetization.

New tools and technologies have made it far more

practical and less costly to extract, model, enrich
and anonymize customer data
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MONETIZING CUSTOMERS DATA

Maximizing the potential through
privacy and partnerships

SECTION 1 :

THE POTENTIAL
AND RATIONALE
FOR MONETIZING
CUSTOMERS DATA

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ressed by high penetration of traditional services,

continued competition and disintermediation by
over-the-top (OTT) players, wireless service providers
are struggling to increase revenues. Even mobile
data, which according to a McKinsey report from last
year grew by a multiple of 46 times from 2008 to
2013, returned only a three-fold gain in revenues
(see Figure 1-1).
Yet most service providers are sitting on a potential
gold mine: huge amounts of data about their customers.
And increasingly they are looking to monetize it.
Moreover, newer tools and technologies have made
it far more practical and less costly to extract, model,
enrich and anonymize this data.
Most service providers are using some form of
analytics to facilitate internal monetization of data
(meaning increasing revenue from customers), but only
a handful have made significant progress in external
monetization of their data (that is, selling anonymized
data to third parties for a variety of uses). There are
several reasons for this, but the two most common
barriers to service providers getting started are lack of
understanding of the value of their data and regulatory
concerns. As one service provider put it, We are
waiting for things to settle down before we jump into
this; weve seen others fined or suffering damage
to their brands for their practices and dont want to
experience that.

Everybody wins
The fact is, sharing wireless customers data can benefit
not only the service provider but their customers, plus
other industries and governmental bodies so long

Figure 1-1: Data revenues are not keeping pace with traffic
Mobile data, global
7.9
6.7

Capital intensity
(capex/revenues)
40x

Data traffic
(TB millions)

Growth factor,
2008-2013

3.2

1.4

0.2

Data revenues
(EUR billions)

0.5

66

81

97

122

155

182

2008

2009

2010

2011

2012

2013

18%

17%

16%

16%

17%

16%

3x

Source: Cisco Global Mobile Data Traffic Forecast, Yankee Group, Ovum Telecoms, Analysis Mason (2013)

The two most common barriers to monetizing

customers data are lack of understanding of the
value of the data and regulatory concerns
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as the right safeguards are in place. Using the data,

governments can better understand their constituents,
services and infrastructure; companies can gain a
better grasp of customers and prospects; and users can
receive more relevant information and services.
The good news is that service providers are well
positioned to profit from this situation as they capture,
aggregate, enrich and analyze mounds of data from
billions of events each day. Mobile service providers
have a unique perspective as wireless devices are highly
personal, whereas PCs are often shared.
Delivering highly relevant and high-quality information
is not easy: Besides the sheer volume and variety of
data, the volume and variety of sources, data definitions
and extraction intervals create real challenges for service
providers. Nevertheless, while most have some distance
to go to realize these improvements, the promise is very
real.

Sharing data: A win-win

Governments:
Understand
constituents, services
and infrastructure

Companies:
Understand
customers
and prospects

Users:
Receive more
relevant information
and services.

But the right safeguards must be in place

Where are the market opportunities?

Estimates of the total market for telecom data services
are not easy to come by, but one 2015 study by 451
Research estimates that the addressable market for
telecom data as a service will grow from $24.1 billion
in 2015 to $79 billion in 2020. This number is dwarfed
by overall communications revenues but is still a
sustainable and potentially highly profitable business for
those who make the commitment.
Uses of wireless customers data is seemingly limited
only by the imagination of users themselves. The key for
most business applications is to deliver timely, relevant
content in context, and the highly personal nature of
the mobile device provides real enablement potential.

Uses of wireless customers data

is seemingly limited only by the
imagination of users themselves
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Following are some examples of areas of opportunities.

There are others, and certainly more will follow as
businesses and governments become more aware of the
power of this data.

Figure 1-2: Forecast for spending on digital advertising in the US

n Mobile n Desktop
$65.87

Mobile share of digital ad spent

In-app: $29.66
Mobile web: $10.84

Digital advertising
Advertisers are seeking to improve their effectiveness by
reaching target audiences with highly relevant media in
the appropriate context, thereby engaging the audience
with content that benefits them. To do this, they need a
clear understanding of audience profile and context at any
given time.
The digital advertising market continues to grow
rapidly in the US, with the mobile share of spending on
digital advertising passing that of desktops in 2016, and
continuing that trend beyond (see Figure 1-2). This growth
in digital ad spending is a global phenomenon, though
mobile is growing proportionally faster in the US (see
Figure 1-3).
Real-time bidding (RTB) is driving a lot of digital
advertising today. It refers to the buying and selling of
online ad impressions through programmatic, real-time
auctions that occur in the time it takes a webpage to
load. As an ad impression loads in a users browser,
information about the page (or app) in which it is
contained and the user viewing it is passed to an ad
exchange, which auctions it off to the advertiser willing
to pay the highest price for it. The winning bidders ad is
then loaded nearly instantly; the whole process takes just
a small fraction of a second to complete.
Advertisers typically use demand-side platforms to help
them decide which ad impressions to purchase and how
much to bid on them based on a variety of factors, such

$57.78
$49.81

$40.50
$32.44

$31.58
$28.72

$29.89
$26.59

$25.35

$25.17

$24.96

$19.15
$10.67

24.7%

49.0%

37.7%

2013

2014

66.6%

60.4%

2015

2016

2017

69.7%

72.2%

2018

2019
Source: eMarketer

Figure 1-3: Global mobile Internet advertising spending, 2013-2019

2013

2014

2015

2016

2017

2018

2019

$19.20

$42.63

$69.69

$101.37

$133.74

$166.63

$195.55

% change

117.9

122.1

61.1

47.6

31.9

24.6

17.4

% of digital ad spending

16.0

29.4

40.2

51.1

59.4

65.9

70.1

% of total media ad spending

3.7

7.8

11.9

16.5

20.5

24.1

26.8

Mobile Internet ad
spending (billions)

Note: includes display (banners, video and rich media) and search; excludes SMS,
MMS and P2P messaging-based advertising; ad spending on tablets is included.
Source: eMarketer

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as the sites they appear on and the previous behavior of

the users loading them. For example, a particular retailer
might recognize that a user has previously been on its
site looking at specific merchandise and therefore may be
prepared to pay more than another retailer to serve ads to
her. The price of impressions is determined in real time,
based on what buyers are willing to pay, hence the name
real-time bidding.
RTB is important because it allows advertisers to
target their ads to specific users instead of just broadly
purchasing banner real estate on sites. Service providers
often have much of the profiling information advertisers
are looking for, including location, online behavior,
preferences and demographic information, which
provides the advertiser with a clearer target.

Financial services

efficiency, reduce journey length, alleviate congestion and

plan changes. Again, data from mobile service providers
can be used to optimize standard schedules and to better
understand and plan for traffic at special events, in detail,
including profiles of those traveling.
Logistics companies may also find this information
valuable in optimizing their delivery routes and methods.

Optimizing billboard advertising

Closely related to traffic flow (whether motorized or on
foot) is the optimization of billboards, and in particular
digital signage that may be located on busy thoroughfares
or near various attractions. By understanding traffic
patterns advertisers can deliver highly relevant content
thorough digital signage and other media, shifting
messages and content along with traffic characteristics.

There are many opportunities across all segments

of financial services. For example financial services
companies can analyze various events in the context of
the customers lifecycle to offer relevant services, such
as auto insurance for a car shopper, loans or credit for
customers planning significant purchases, promotions
for customers in proximity of retail bank branches, or
financial services for frequent travelers. Importantly,
institutions may also be able to use this information in
conjunction with customer-retention campaigns.
Another key use of this data is for credit card
companies and banks to detect and address fraud.

Public transportation

Managing traffic

Siting and staffing facilities

Governments are interested in managing their public

infrastructure assets to improve user experience and

Retailers want to know where to site their facilities

to maximize store revenues and efficiency, especially

Public transportation authorities are constantly aiming to

improve both the passengers experience and operational
efficiency of their transportation systems. This might
include analyzing and reducing journey length, alleviating
congestion, or understanding passenger waiting time at
stations and stops. This data can be provided by service
providers and used to optimize schedules, understand
and plan for traffic at special events, in detail, even by
passenger profile. It can also be used to help manage
partnerships, such as with retailers or advertisers,
resulting in additional revenue.

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for new store openings. Among the most important

factors in making these decisions is being able to profile
the movement and behavior of the target audience.
Understanding customer profiles in conjunction
with travel patterns, spending history, interests and
demographic information can help determine were to
position new stores, as well as how many staff members
might be required to service customers at any given time
of the day or day of the week.
Retailers may also use this information competitively,
tracking traffic trends around their competitors
locations. Similarly, real estate companies may use it for
the siting of commercial and residential facilities.

As we noted earlier, potential uses for customer

data by third parties will grow as the digital economy
continues to expand. Most of all, communications
service providers, and especially mobile operators, have a
unique contribution to make through their access to their
customers data which, further down the line could well
become a bargaining chip concerning the role(s) they play
in digital ecosystems.

8 data monetization opportunities

Entertainment and events

There are many entertainment opportunities, perhaps
the most popular being sporting events, but the same
principles apply to concerts and other special events.
Venues can use information to manage attendee
traffic, sell tickets, target premium services (such as
providing high-quality video clips), and promote fanrelated merchandise. Gaming houses can also use this
information to deliver relevant promotions to targeted
profiles.

Digital
advertising:
Right content,
right audience,
right time

Financial
services:
Cross and
upsell & detect
fraud

Managing
traffic:
Alleviate
congestion,
optimize delivery
routes

Optimized
billboard ads:
Understand the
traffic, tailor the
message

Retail:
Optimize store
placements and
staffing, monitor
competitors

Entertainment
and events:
Manage
traffic, target
promotions

IoT:
Add value
location data
and more

Internet of Things
The number of connected objects representing the IoT
ecosystem is expected to reach tens of billions of devices
over the next decade. A number of service providers
already have active programs addressing smart homes,
cars, health and cities, and could add value to them all
with various types of information, including location,
geo-spatial and much more.

Public
transportation:
Passenger
satisfaction,
operational
efficiency, revenue
opportunities
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SECTION 2 :

UNDERSTANDING
AND PROTECTING
DATA PRIVACY

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ata privacy is perhaps the single biggest concern for

service providers planning to provide data to third
parties certainly it was the most mentioned by service
providers we interviewed. Customers expect their rights
to be respected and their data protected. Violations of
these rights can result in loss of trust, brand-damaging
publicity and regulatory intervention, and substantial
financial penalties.
These issues must be carefully navigated by
aggregating and anonymizing customer data to ensure
confidential information about individual customers is
never disclosed. Done right, service providers have a
huge opportunity to monetize relevant insights without
compromising customers privacy and rights.
This section is intended to provide an overview of
established and emerging regulatory regimes relative to
data privacy from around the world. A comprehensive
review is beyond the scope of this report; the intent is
to give some important guiding principles and outline
recent developments.

OECD guidelines: principles from the pioneers

The Organization for Economic Cooperation and
Developments (OECD) Guidelines on the Protection of
Privacy and Transborder Data Flows of Personal Data
were developed by member countries and adopted in
1980. The guidelines apply to all personal data. While
not legally binding, these principles have long been
recognized as a statement of norms that should govern
personal data privacy and guide both OECD members
and private organizations in crafting their policies.

The guidelines stipulate adherence to the following

principles when collecting and processing personal
information and data:
Collection limitation there should be limits to
the collection of personal data, and data should
be obtained by lawful and fair means and, where
appropriate, with the knowledge or consent of the
individual.
n Data quality personal data should be relevant to
the purposes for which they are used, and should be
accurate, complete and kept up-to-date.
n Purpose specification the purposes for which
personal data are collected should be specified,
and any subsequent use must be limited to that
specification.
n Use limitation data should not be disclosed, made
available or otherwise used for purposes other than
those specified, except a) with the consent of the
individual or b) by the authority of law.
n Security safeguards data should be protected by
reasonable security safeguards to protect against lost,
destruction, use, modification or disclosure.
n Openness there should be a general policy about
openness with respect to personal data.
n Individual participation an individual should have
the right to find out information about their data and to
have incorrect data erased or rectified.
n Accountability a data controller is accountable for
complying with these measures.
n

13

Violations of privacy
can result in loss
of customers
trust, branddamaging publicity
and regulatory
intervention, and
substantial financial
penalties

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EU: Emerging and controversial regulation

The General Data Protection Regulation (GDPR) is a
regulation in development with which the European
Commission (EC) plans to govern data protection for
individuals within the European Union (EU). The primary
objectives of the GDPR are first and foremost to give
citizens control of their personal data and secondly to
simplify the regulatory environment for international
business by unifying the regulation within the EU.
At publication of this report, the expectation was that
the GDPR would be passed by the European Parliament
in March or April 2016. Companies would then have a
two-year grace period in which comply with it. At the
end of that period, the GDPR would replace the 1995
Data Protection Directive. The first proposal for GDPR
was released in January 2012 and has been subject to
broad scrutiny and its share of controversy.
Of course, as with any directive or regulation, the devil
is in the detail. Following is a summary of key points and
changes in the GDPR some are still being discussed
and negotiated.

GDPR: What you need to know

The EC defines personal data as any
information relating to an individual, whether
it relates to his or her private, professional or
public life. It can be anything from a name, a
photo, an email address, bank details, posts
on social networking websites, medical
information, or a computers IP address.

The proposed data protection regime extends

the scope of the EU data protection law to all
non-EU companies processing data about
EU residents. Consistent data protection
regulation throughout the EU is intended to
make it simpler for non-European companies
to comply with these regulations.
While the magnitude of penalties is still under
negotiation, there will be a strict regime
regarding compliance, with severe financial
penalties for non-compliance.
A single set of rules will apply to all
EU member states. Each member state
will establish an independent Supervisory
Authority to hear and investigate complaints,
sanction administrative offences, etc. The
authority in each member state will cooperate
with their counterparts, providing mutual
assistance and organizing joint operations.
There are exceptions for data processed
in the context of employment and data
processed for purposes of national security
and public safety, which still may be subject
to individual country regulations
Privacy by design and by default principles
(see page 16) require data protection to be
designed into the development of business
processes for products and services. Privacy
settings are to be set at a high level by default.
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In the private sector, processing is carried out

by the data protection officer (DPO) whose
core activities are processing operations that
require regular and systematic monitoring of
the data subjects.
Monitoring of DPOs will be the responsibility
of the regulator rather than the board of
directors of the organization which employs
the officer. The post holder will need to
create their own support team and will
be responsible for their own continuing
professional development as they need to be
independent of the organization that employs
them, effectively as a mini-regulator.
The independent DPO will be under a legal
obligation to notify the Supervisory
Authority of a data breach without undue
delay this is still subject to negotiations.
Sanctions include a warning in writing
in cases of first and unintentional noncompliance, regular periodic data protection
audits, and significant fines.
Valid consent must be explicit for data
collected and purposes of data used. Consent
for children under 13 must be given by
childs parent or custodian, and should be
verifiable. Data controllers must be able to
prove consent (opt-in) and consent may be
withdrawn.

Users must be told why their personal data

is being collected, how long it their data will
be kept for, and who will receive it.
Users must be notified of their right to
request access to the data, and have the
right to request erasure of personal data
related to them on any one of a number of
grounds. This is a replacement of the much
discussed right to be forgotten.
Users have the right to transfer their
personal data from one electronic processing
system to another, without being prevented
from doing so. The data must be provided by
the controller in a structured and commonly
used electronic format.
The GDPR remains controversial. The single set of
rules and the removal of administrative requirements
are intended to reduce costs, but the addition of new
roles to the 1995 Directive, language issues, conflicts
with non-European laws, provision of resources for
enforcement, and massive educational requirements
all add cost and complexity for governments and
companies alike.
Having said that, many consider the terms of the GDPR
as the benchmark for data privacy regulation in future;
for instance, Argentina and Uruguay follow European
regulation. The rest of the world is mixed, with Canada
and Japan having fairly strict but their own specific
laws. Others, like the US, have little to no regulation,
sometimes handling issues on a case-by-case basis.
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Although the GDPR may seem restrictive to some,

we believe there are fundamental concepts inherent in
the regulation that are sound. Giving the user control of
their data and incorporating Privacy by Design Principles

are fundamental to creating a healthy relationship

between customers, users or citizens and all kinds
of organizations.

PRIVACY BY DESIGN PRINCIPLES

The following are taken from the Information and Privacy Commissioner, Ontario Canada.
1. Proactive not reactive; preventative not remedial. The Privacy by
Design (PbD) approach is characterized by proactive rather than
reactive measures. It anticipates and prevents privacy invasive events
before they happen. PbD does not wait for privacy risks to materialize,
nor does it offer remedies for resolving privacy infractions once they
have occurred it aims to prevent them from occurring. In short, PbD
comes before-the-fact, not after.
2. P rivacy as the default setting. We can all be certain of one thing the
default rules! PbD seeks to deliver the maximum degree of privacy by
ensuring that personal data is automatically protected in any given IT
system or business practice. If an individual does nothing, their privacy
still remains intact. No action is required on the part of the individual to
protect their privacy it is built into the system, by default.
3. P rivacy embedded into design. PbD is embedded into the design
and architecture of IT systems and business practices. It is not bolted
on as an add-on, after the fact. The result is that privacy becomes an
essential component of the core functionality being delivered. Privacy
is integral to the system, without diminishing functionality.
4. Full functionality. Positive-sum, not zero-sum PbD seeks to
accommodate all legitimate interests and objectives in a positive-sum
win-win manner, not through a dated, zero-sum approach, where
unnecessary trade-offs are made. PbD avoids the pretense of false

dichotomies, such as privacy versus security, demonstrating that it is

possible to have both.
5. E nd-to-end security. Full lifecycle protection PbD, having been
embedded into the system prior to the first element of information
being collected, extends securely throughout the entire lifecycle of
the data involved strong security measures are essential to privacy,
from start to finish. This ensures that all data are securely retained, and
then securely destroyed at the end of the process, in a timely fashion.
Thus, PbD ensures cradle to grave, secure lifecycle management of
information, end to end.
6. V isibility and transparency: Keep it open. PbD seeks to assure all
stakeholders that whatever the business practice or technology
involved, it is, in fact, operating according to the stated promises and
objectives, subject to independent verification. Its component parts
and operations remain visible and transparent, to users and providers
alike. Remember, trust but verify.
7. Respect for user privacy: Keep it user-centric above all. PbD requires
architects and operators to keep the interests of the individual
uppermost by offering such measures as strong privacy defaults,
appropriate notice, and empowering user-friendly options. Keep it usercentric.

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Giving users control

Compliance with regulation concerning privacy and
security of customers data is not optional and will
require constant vigilance to keep up to date on
requirements. But we believe that in the digital world,
trust is the most priceless commodity of all and being
open and transparent with customers is critical and
could be a huge differentiator.
Regulation is always a blunt instrument observing
the spirit, not just the letter of it while looking for
loopholes is the key. If your customers trust you, they
will let you use their data without trying to pull the
house down on you.
How much better to be proactive than waiting for a
regulator to put the boot in? Theres a lot of talk about
data being the new oil we think this is a passing
phase and the real pot of gold will be trust a suitably
rare commodity right now.
In particular, communications service providers
who have the billing relationship with customers
have an outstanding opportunity to fill this vacuum
for the benefit of all, working closely with the other
stakeholders. Further, they are well-place to be forward-

looking regarding security and privacy, rather than

reactive.
And trust is exactly what TM Forum is championing,
seeking to give customers control of their own data,
including the use of data derived from the original
sources and permutations of it.
For example, TM Forums Privacy Dashboard sets out
to enable easy-to-use control and transparency for all
parties with regard to personally identifiable information
(PII). It is focused on clearly identifiable digital
transactions as a customer I want a service but place
the following constraints on the use of my personal data
(my privacy profile). Similarly, the service provider will
have a list of personal data they require to provide the
service. Both parties can modify their profile to establish
a mutually acceptable, enforceable position.
Stakeholders from all the key parties involved
equipment vendors, legislators, individuals and
service providers are developing practical tools and
best practices for privacy management. Join us for the
next phase by contacting Chris Stock directly via
cstock@tmforum.org

Compliance with regulation concerning privacy will require

constant vigilance to keep up to date on requirements
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SECTION 3 :

WHAT TO DO NOW

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MONETIZING CUSTOMERS DATA

WWW.TMFORUM.ORG

Maximizing the potential through

privacy and partnerships

lthough service providers increasingly grasp

the opportunity presented by external data
monetization, progress has been somewhat slow.
Certainly concerns over privacy regulation and
data management have inhibited progress, but the
opportunity for incremental revenue is a massive, almost
untapped opportunity.
A number of lessons stand out, some of them
more traditional, others relatively new, based on the
characteristics of digital markets and recent learnings.
Gain top managements support
importantly, the external monetization
strategy must reflect the corporate strategy;
for example, compliance with privacy policies
should be reflected in corporate policy. Top
management should be setting or at least
supporting these policies. In addition, it
must approve the business case, allocate
appropriate resources, ensure crossfunctional coordination and sometimes
remove the key obstacles that inevitably pop
up during the course of implementation
Understand customers needs to develop
a valid business case, service providers must
understand the needs of their advertising
partners, and seek to provide rich and
relevant data (compliant with applicable
regulatory regimes). Service providers can
leverage partners to better understand
market requirements as well.

Partner management is critical to

success In a digital ecosystem, partners
are essentially an extension of the service
provider and for the partnership to work,
both partners will need to treat each other in
some respects like customers. For example,
in digital advertising, partners may already
have deep market knowledge, relationships
with advertisers and established delivery
infrastructure. This can help accelerate
market entry.
Think big, start small service providers
do not necessarily need a perfect data
solution to be effective in the market. By
understanding the market, service providers
can start by supplying a relatively small, but
meaningful, stream of data and expand the
depth and breadth over time. Partners with
deep market understanding can help service
providers to prioritize data sets.
Privacy is crucial implementing a robust
set of privacy measures is critical to success
of any data management effort and is not
limited to avoidance of regulatory penalties.
Privacy is a fundamental component of
customer trust, and without trust it is nearly
impossible to engender loyalty. Compliance
with privacy regulation may be viewed as
complex, cumbersome and expensive, but it
is a necessity regardless of your monetization
strategy.
19

MONETIZING CUSTOMERS DATA

WWW.TMFORUM.ORG

Maximizing the potential through

privacy and partnerships

Manage customers data as a corporate

asset because thats what it is! A strong
data management program is important for
myriad reasons, not just for monetization
and to comply with privacy regulation: Being
able to provide rich, relevant, accurate
data in a highly scalable fashion can lead
to a substantial competitive advantage and
increased revenue. Data monetization might
not be the prime driver of data management
efforts, but it should contribute to the
justification for such programs and their
priorities for improvements.

Take advantage of best practices and

frameworks (see page 21) given the
breadth and complexity of the opportunity,
any help with best practices, data
management and domain frameworks will
be useful. For example, TM Forum has
created a number of useful assets for service
providers and suppliers alike, most notably
guidebooks on external data monetization
and big data Analytics, and the popular
Information Framework (SID) all part of the
Frameworx suite of standards-based tools
and best practices (see page 21). In addition,
TM Forums Big Data Analytics Collaboration
Program is specifically addressing an
increasing number of relevant monetization
issues.

Being able to provide rich, relevant, accurate data in a highly

scalable fashion can lead to a substantial competitive
advantage and increased revenue
20

COLLABORATIVE R&D MAKES

DIGITAL BUSINESS REAL WITH
FRAMEWORX 15.5
The latest version of the blueprint for digital business success,
TM Forum Frameworx 15.5, contains new toolkits, best practices, guides
and reports. They empower companies across multiple industries with
actionable information to thrive in the digital economy. The Forums
diverse global membership, which includes more than 90 percent of the
worlds largest service providers, can make use of them immediately.
From July to December 2015, hundreds of
individuals from a diverse range of member
companies have used TM Forums unique
collaborative environment in 10 distinct projects
to deliver the new features in Frameworx 15.5,
working within the context of the Forums
strategic programs: Agile Business & IT,
Open Digital, Customer Centricity, and
Security & Privacy.

Agile Business & IT

TM Forums Agile Business & IT Program helps
enterprises continuously optimize their IT and
business operations. Key features in Frameworx
15.5 that support the program come from the
ZOOM (Zero-touch Orchestration, Operations
and Management), APIs, Frameworx, and
Revenue Management projects:
n The

ZOOM project provides the guidance

needed for digital operations transformation.
Frameworx 15.5 enhancements include

IG1136 Network Service Analysis, which

helps companies implement virtual customer
premises equipment, and TR224 Identity
and Naming, which provides an identity and
naming scheme that supports traditional and
virtual network elements along with movable
software functions. IG1118 OSS/BSS Futures
Architecture has been extended, examining
the impact of NFV on existing support
systems, specifically on B2B2X aspects. Also
updated is TR225 Logical Resource Network
Function Model, which is designed to support
data center, virtualization, SDN, NFV and other
current initiatives as well as the existing legacy
network.
n Important developments from the API project
include the TM Forum Ecosystem API Portal,
a hub for developer adoption of
TM Forum APIs, and a Dynamic API Technical
Recommendation. User guides have been
released for new API Conformance Test
Kit certifications for Product Ordering and

21

Catalog Management as well as API REST

Conformance Guidelines, and specifications
for Activation & Configuration and Service
Ordering APIs.
n Key features from the Frameworx project
include a combined Concepts & Principles
document outlining the compilation and
creation of the core Business Process,
Information and Application Frameworks.
In addition, a blueprint for Enterprise Risk
Management (GB921R) has been added to
the Business Process Framework (eTOM),
as well as updates in the Information
Framework to the Party, Engaged Party
and Customer aggregated business entities
to reflect organization structures, privacy
management and customer relationships.
The Application Framework has released a

new Privacy Dashboard (see opposite page)

and substantially expanded API Management
as well as updates to the Functional
Decomposition document.
n The Revenue Management project has updated
its Revenue Assurance Maturity Model based
on feedback from operators and has produced
a guidebook on SDN/NFV Impacts and
Implications on Charging and Billing.

beyond traditional customer experience to true

one-to-one customer engagement in order to
maximize market share, loyalty and opportunities
for growth. The contribution of this program to
Frameworx 15.5 includes:
n

Open Digital
TM Forums Open Digital Program helps service
providers, enterprises and their suppliers
succeed in the digital world by making it easier
to create, build and operate complex innovative
services. The goal of the program is to enable an
open digital ecosystem where new services can
be delivered quickly, easily and securely using a
wide range of business models and partners:
n

Significant progress from this program

includes an update to the TR211 Online B2B2X
Partnering Step by Step Guide. It also includes
the release of a Digital Ecosystem Reference
Architecture (DERA) white paper, highlighting
the challenges of interconnecting different
ecosystems and outlining an approach to
accelerate the technical and commercial
integration of those different ecosystems to
deliver complex digital services.

Customer Centricity
IoT, smart everything and virutalization all have
big impacts on customer centricity and the use
of analytics. The Customer Centricity Program
helps service providers and global enterprises
continuously evolve their businesses by moving

Substantial updates to several guidebooks and

new use cases, including Data Monetization,
Big Data Analytics, Omnichannel and
Customer Experience Management. The ROI
Calculator has two additional use cases on
churn reduction and e-commerce conversation
improvement, and the 360 Degree View of the
Customer has new extensions to the lifecycle
model, with new terminology to reflect the
experiences of users of digital services. The
guide defines an approach for using analytics
to get to the 360-degree view and explores
the experience of things in an Internet of
Things world. A Unified Use Case Template
for Customer Centricity is also now available,
as are hundreds of new additions to the
TM Forum Metrics Repository, bringing the
total to more than 1,700.

Security & Privacy

TM Forums Security & Privacy Program aims
to bring security and privacy to the forefront
of organizational thinking. They run across all
projects in the strategic programs outlined above:
n

The key update from this program is to TR243

Privacy Management. It now includes a multicompany Privacy Dashboard template that can
be adopted by all organizations and provides
a complete overview on how to manage
privacy and addresses the individuals wishes,

22

the aims of the data collecting organization

and any relevant legislation. In the initial
blueprint for the Privacy Dashboard, the
Privacy Management project (led by Orange),
identified the aspirations of the individual
and the organization to regional variations
in legislation and pulls together a model to
demonstrate how privacy can be addressed to
the satisfaction of all parties.
TM Forums Security & Privacy Program also
focuses on the ability to orchestrate security
functions end-to-end across virtualized services
and has been progressed through the Catalyst
project Security Functions in NFV.

Frameworx Conformance Certification

Frameworx continues to be the most widely
used blueprint for effective and efficient business
operations. The Forums Frameworx Conformance
Certification Program provides an independent
assessment and verification of how well
products, solutions and implementations align to
standards specified in Frameworx. In 2015 the
program certified Telefnica as fully conformant
to the Frameworx Business Process Framework
(eTOM) and a second-phase of testing for Verizon
Enterprises Verizon Rapid Delivery (VRD) was
conducted. Technology suppliers including
Apttus, Celfocus, Comverse, CoralTree Systems,
Ericsson, Intraway, IST and MDS, were also
certified for various products and solutions.
To date, more than 90 products, solutions and
implementations from more than 40 service
providers and technology suppliers have been
certified as conformant with Frameworx through
the certification program.

MONETIZING CUSTOMERS DATA

WWW.TMFORUM.ORG

Maximizing the potential through

privacy and partnerships

TM FORUM TOOLKIT FOR DATA MONETIZATION

INTRODUCTORY GUIDE TO
EXTERNAL DATA MONETIZATION

PRIVACY MANAGEMENT
R15.5.0 STANDARD

BIG DATA ANALYTICS

SOLUTION SUITE

n A

n Use

n Big

reference model for successfully

monetizing data
n A holistic view of regulations
n Privacy techniques mapped to layers
of the architecture
n 10 use cases

cases for privacy management from both

the end-users and organizations perspective
n Privacy drivers in open digital ecosystems
n Privacy management integrated into Frameworx

23

Data Analytics Guidebook

n Big data analytics use cases
n Big Data Analytics Repository

SPONSORED ARTICLE

GETTING DATA PRIVACY RIGHT

From our experience, operators around the globe

do not question the if of data monetization, they
grapple with the how. That data monetization
can quickly become a significant new revenue
source is a widely accepted notion. Yet, operators
often lack experience and expertise in this domain.
Countless talks with operators worldwide have
led us to understand that mastering privacy is the
most vital part of the how. It is for this reason
that we want to share our recipe for getting privacy
and consumer interaction right and encourage
operators to move forward.
Pursuing the principles of privacy-by-design,
means embracing privacy as a default setting
both in ones technology and business conduct
Jules Polonetsky, founder and executive director of the
Future of Privacy Forum in Washington DC

Privacy by Design (PbD)

Privacy by Design (PbD) is a concept that was first
developed in the 90s in Canada and has since
become a widely accepted standard, even making
its way into the newest privacy regulations of
the European Union. It calls to proactively make
privacy assurance the organizations default mode
of operation rather than solely trying to comply
with regulatory frameworks. Privacy then should
be deeply embedded into the design of the

business model, IT architecture and operational

processes of an organization. Studying the Seven
Foundational Principles of this widely recognized
philosophy is highly recommended.

Not All Data is Equal

Local regulations regarding the use of data differ
significantly and so do consumers sentiments
regarding different types of data. A study by BCG
reveals it is vital to not treat all data as equal but
differentiate between the types of data used
for specific purposes. For example, age, gender
and brand preferences are attributes that can
significantly improve advertising efficiency and
are not really considered private by the majority
of the population. In contrast, browsing behaviors
and financial data are perceived as much more
sensitive. Interestingly, these sentiments are
also shared across generations with millennials
opinions not diverging significantly from those
of older members of society. Since operators
usually hold data assets across the entire
spectrum of data types, it is important to develop
By now operators have understood that putting
privacy first empowers new business models
and paves the way into the golden age of data
Chetan Sharma, telecoms industry strategist,
author and consultant to major operators
24

a differentiated consent strategy for different data

types and use cases.

Control & Transparency

At the end of the day, consumer data still
belongs to the consumer. Using this data is thus
about building trust and best pursued through
proactive and transparent communication along
with offering ways for customers to control the
use of their data. To make sure opting out is
easy (for what is usually a very small minority of
users), it is advisable to offer a simple opt-out
process by means of different channels. Ensuring
this opt-out mechanism works reliably and that
these permissions are properly registered in all
connected systems is of course vital. From our
experience, the majority of consumers are willing
to share their data when they see a clear personal
or social benefit. For instance, reminding them of
how more relevant advertising can significantly
improve the mobile experience and contribute
positively to a mobile ecosystem that is almost
entirely ad-supported can make all the difference.
Author
Daniel Heer, CEO of zeotap
References
Jules Polonetsky, executive director of Future of Privacy Forum
Chetan Sharma, telecoms industry analyst, author and consultant

SPONSORED FEATURE

GREAT EXECUTION ALWAYS WINS!

Monetizing Data Effectively in the Advertising Ecosystem

An interview with Daniel Heer (CEO),

Stephan Schwebe (CRO) and Projjol
Banerjea (CPO), founders of zeotap
TM Forum: You have won the business of several
operators across three continents since zeotap was
first founded in 2014. Is it the right time for operators
to monetize their data in the advertising world?
zeotap: Oh definitely! Mobile advertising is a great
market to make sensible use of operator data in a way
beneficial to all stakeholders. Its growing fast, adapts
to new technologies quickly and, most of all, is in dire
need of high-quality data sources. Despite the overall
growth rates, mobile advertising today is still very
inefficient.
TM Forum: But players such as Facebook and Google
must have great data?
zeotap: Yes, those few players have great data and
have used it to build multi-billion-dollar revenues in just
a few years. Mobile operators can do the same. Many
ads are still distributed without any kind of dependable
targeting, making them totally irrelevant to the
recipient. Thats not only inefficient but also annoying
for mobile users.
TM Forum: How did you get the idea to found zeotap?

From left to right: Stephan Schwebe (CRO), Daniel Heer (CEO) and Projjol Banerjea (CPO)
zeotap: (Daniel) When I was still at Vodafone a few
years ago, I saw day by day how frustrating it was that
there was this huge data opportunity but no partner
to pursue it with. So eventually I decided to become
that partner and started building my network in the
advertising world. The people around me there were
equally excited so that we eventually started with a
substantial initial investment and a number of renowned
business angels from both the telecoms and advertising
25

world. Im also very happy that we are three founders

with very complementary skills. Projjol had been
instrumental in establishing mobile advertising platform
Fyber previously and joined after the company was sold
for almost $200 million and Stephan was head of cloud
solutions at IBM and responsible for 1500 people. Weve
built zeotap from the very start to be professional, fast
and agile to fit with operators high standards and enable
them to enter the market quickly and with low effort.

SPONSORED FEATURE

GREAT EXECUTION ALWAYS WINS!

Monetizing Data Effectively in the Advertising Ecosystem

TM Forum: So you offer operators an end-to-end

solution?
zeotap: Exactly. We do everything so that they can
tap into this new opportunity safely and quickly. Today,
we can bring an operator live in just a few months in
compliance with world-class privacy standards and a
technology that is very scalable. This is only possible
with a great deal of proactivity and travel we spend
most of our time with our clients around the globe.
TM Forum: What data do you use exactly?
zeotap: Were big fans of keeping things simple and
showing operators that they are onto a great business
opportunity. Thats why we usually start with operators
basic data assets. While this is really only the tip of
the iceberg, it already makes all the difference in the
advertising market. As simple as it might sound, you
cannot imagine how happy it makes a luxury beauty
brand to know that their new lipstick is only being
advertised on womens mobile screens.
TM Forum: Data privacy is an important part of the
equation when using data for any business purpose.
How do you see this in the light of advertising?
zeotap: Privacy is extremely important and we focused
on the topic from the very start. Our technology is built
from the ground up based on our privacy principles

and standards. We have a lot of measures in place

to ensure that our technology is bulletproof, but we
also work closely with our clients to develop the right
communication to their subscribers. After all, privacy
is a lot about putting subscribers in control. It should
be no surprise then that we have our own permissions
management platform via which operators can offer
an opt-out mechanism to their subscribers. In the end,
getting privacy right is all about creating trust.
TM Forum: How can you reach scale in the advertising
market?
zeotap: Firstly, advertisers and agencies around
the world have been waiting for this data for years.
There are many who want to be amongst the first
customers and once live, we anticipate a major pull
from the market. Apart from that, a cross-operator
strategy is important to reach global scale. Being able
to access data from several operators at the same
time is important for advertisers since they want to
be able to target a countrys entire population via a
single platform. There are also different technical ways
in which the data can be used sensibly within the
advertising ecosystem. Our technology for instance
can connect directly to the programmatic market where
data is instantly monetized by existing demand. At the
same time, it can also be used directly in deals struck
with advertisers and agencies. Lastly, despite its focus
on performance the advertising market is still driven by
26

people and networks. zeotap is directly connected to a

majority of the big players in the advertising world and
since these relationships are built over time it makes a
lot of sense to look for a partner who has them.
TM Forum: Finally, what is your vision for zeotap?
zeotap: Were creating the worlds largest crossoperator data platform for advertisers. In the long run,
we also want to help operators tap into other markets
smarter mobility, financial services and a new era
of identity management are but a few of them. For
the moment, though, our priority is to deliver on the
tremendous potential of our initial focus advertising.
In the end, anyone can have a big vision but great
execution always wins!

zeotaps data monetization

platform has been designed from
the ground up to ensure privacy
protection. It truly is a case of
privacy by design.
Kenneth Engelhart, former SVP Regulatory
at Rogers, Canada

To find out more about the Forums on-going work on data

monetization, including how to get involved, contact Rebecca Sendel,
Senior Director, Customer Centricity Program, TM Forum via
rsendel@tmforum.org