Personalization and Privacy: Can the Two Coexist?

In the past month, the media, both trade and mainstream, have been covering data privacy. I have read viewpoints ranging from never using any customer data to the point of not even recording or tracking data to the idea that all data is the sole product of the provider of the service. I can�t imagine what the layperson thinks the communications providers know about them. I suspect the opinion in this country is as polarized as the recent immigration discussion. On one side, we have someone like my father. I haven�t dared to discuss this with him, for fear that we would argue over the fact that Ma Bell is selling his social security number to people overseas. The other side probably pays no attention, figuring that the government knows every time we check out a library book. In either case, we are left with the consumers not really being informed about what purpose service usage data actually serves. I think education consisting of industry collaboration might be in order.

Usage is recorded for various purposes. The first and, probably, most obvious reason is billing. Collecting revenue for services rendered has been the mainstay of back office systems, accounting systems, revenue assurance, and the like. One way to surely justify a million dollar system and an industry-wide standard is the collection of funds in the quickest, most efficient way. In addition, consumers understand that; they know that their bill each month correlates directly to what services and products they consume. Where it gets tricky is when the business model no longer requires transactional accountability. Companies that need to fund industry endeavors don�t get it and, even further, consumers don�t get it.

One item that seems to have appeared on the radar of the privacy news page is the host of new video and IPTV (News - Alert) services that will offer personalized aspects of service. This may include offering free videos each month of a like category or having advertising pushed to your set that you will be most likely to buy. While a great business concept, this idea is a little scary to the average consumer. Imagine a message flashing on your screen informing you that you have two free movies available to you this month that are of a slightly personal nature. How would you feel? How can a valued service like this exist while not feeling like a stuffy telecom executive is sitting in your living room? As it is with most things, it would depend on the application. Being able to offer quality programming and content that is appreciated by the audience will take careful application and execution.