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Skydeck: Robin Hood of customer data

A key Telco 2.0 theme is getting more value out of customer data. Nearly all of that data remains locked up inside the telco, with a few side businesses around paper and online directories. Could operators suffer from an ‘over the top’ problem with their data assets in addition to the network? We’ve found an interesting example.

One of the more interesting start-ups we’ve seen pass by our eyes is Skydeck. It’s a concept we’ve pondered over a beer or two in the past. Users are investing some of their most valuable assets — time and money — in making phone calls. By definition, telephony can’t be completely automated away. You (almost always) need at least one person burning a moment of their life on the call, even if the other end is a computer. In theory, this call data is extremely valuable, if also very sensitive.

Ideally the call history would be exposed in a way that could be used to improve the service features and user experience, such as intelligent call routing. In practise this is hard because the telco is terrified of privacy and liability issues, and bound up in regulations, and thus is loathe to pass it to anyone but the user. Hence, cue Skydeck, which liberates customer data and returns it to the people.

What Skydeck do is to scrape the call detail information from your online bill. (Presumably to do this you have to take the risk of giving them your account ID and password — it’s in closed beta testing, and we’re not in the USA so don’t qualify to become users.) Skydeck then use this information to do three things:

  • Sort the address book by who you actually call. On its own this isn’t so important. But in future we believe that the address book will be a quick view into what’s going on in your social and work circle. Whilst a mobile application can read the call logs, your PC can’t; and your mobile can’t read your landline call history. Skydeck fills the data gap.
  • Make your call history easily searchable. Skype does a reasonable job of this, and ultimately we’d expect this kind of data to end up in some kind of personal productivity tool to make it easy to find the document you were editing and discussing on the call.
  • Billing services, such as notification of remaining minutes and impending overage, and personal time accounting.

Where this kind of service would become really interesting is when you start to correlate the call data. Do you really want to take a call in the middle of dinner from a number that makes thousands of outbound calls a day and the phone gets slammed down within seconds in most cases? Google have made $178bn market cap largely off the back of correlating hyperlinks with the PageRank algorithm. Much effort has been expended in R&D labs on latent social network analysis (and the spooks are top of the class), but nothing much has emerged as tangible product, as long as the raw material has remained buried.

The Skydeck product as currently marketed is a technology solution in search of a burning customer problem. It can’t do ‘real time’ data. Users may not wish to open up their accounts to a third party. The business model is not obvious yet. However, that’s not to say it isn’t a good idea or won’t be successful. Each of the above capabilities will find its segment. “Customer data wants to be free”, and if they don’t succeed, somebody else will.

This isn’t an isolated case. Dean Bubley points out that a great deal of useful data remains trapped in the handset for want of data standards and distribution systems. A whole data portability initiative is being brewed by the less evil Internet services to allow users to have their own data. There’s lots of data looking for the exit.

The lesson for operators is that ultimately they need to actively enable the kinds of services that Skydeck wants to offer. The reason is simple: you can charge application partners for it, and near 100% margin.

Telcos not only have data on the users, but also a lot of hidden metadata — i.e. data about data — which is costly to obtain. For instance, BT don’t just know my parents’ address, but have a copper line physically going there, have sent bills to the address that got paid for 20 or more years, and once sent a service engineer too. (The DSL doesn’t work if you plug it into the phone filter, mum.) So BT doesn’t just have an address, they know it’s their address to a much higher standard than many alternatives. Likewise, network-based location comes with a different trust model to something that passes from GPS chip through user software.

Maybe social networks will let you import your call history to auto-discover buddies. But did Paris Hilton really spend two hours on the phone to me yesterday? Time for a telco to sell a signed digital receipt for the phone call! Telcos can packaging the data up conveniently for partners, unlike the hack that Skydeck are forced to follow. You can charge extra for the metadata. You can charge to provide a secure privacy-protected environment in which those outside services can interact with the data to do useful things — but without necessarily being able to take it outside the telco bunker.

Or you can do nothing and let someone else capture all the latent value, just like Google did.

[After we wrote this article, ReadWriteWeb posted up a good interview with the founder of Skydeck, Jason Devitt, that’s worthy of your time.]

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Comments

Great article. From a music industry perspective record labels are only just now realising that they have to become D2C companies as their are two many middle men/women taking a cut of the harder margin digital pie.

CRM data (ie mobile numbers, handset types, geo location etc) is king in this respect and the more emphasis brought to bear on this fact the better.

So I welcome this new offering. Obviously the current digital incumbant's will not like it, as customer data has been there tool of leverage when negotiating extremely one sided deals.

Cheers,
Jakomi

Thank you for writing about us. We subscribe to the Telco 2.0 blog and your thinking has influenced our strategy.

We want to point out that we're very open to working with operators and have been approached by several. But long experience in the mobile industry has taught us that the best way to accomplish something truly innovative is to build it and put it directly in front of end-users.

I'd be happy to discuss Skydeck further.

Jason

Nice idea but where is the value if call costs are trending to zero? Why bother when I can call for 'free' anytime anyplace via my fixed subscription? And who wants to manage anything, email included, as Google recognise? Email contains 'content' so I may spend some time to manage it because I need to access it again but a call record? I am not denying data wants to be free and that there are potentially good uses for it on the supply side (telcos, partners, advertisers) but I am not so convinced they exist on the demand side in an increasing 'free' world.
http://brendandunphy.blogspot.com/

Its interesting - the Telcos were doing social network analysis and drawing social graphs long before social media even existed.

Takes a startup to see an opportunity, or is it just a zeitgeist thing?

By the way, years ago I saw a graph of people's F&F and who they actually called as top 10. Some interesting differences. Many people may not be that keen to have the relationships exposed clearly.

Excellent exposé!

Of course this data will be a catalyst if not immediately valuable.

I recently saw telephony data (source, destination, duration, vm access & activity etc.) from a Telco superimposed over the map of Britain - very interesting I must say...

Call logs for me as a user are great - not on a daily basis, but many times in the past Ive had to retrospectively correlate my fixed/mobile/skype (xml thank god) call recs. to try and prove/save/remember some situation.

There are so many potential scenario's, but ultimately I think we need to get all call logs standardised so that they can be easily acquired and merged, put them to the user/3rd parties and see what they do, at the very least!

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