Sunday 12 August 2012

Free Wi-Fi... if you don't mind being analysed and targeted

It's becoming increasingly difficult to fund the operation of a mobile network, and I've wondered for some time whether, rather than being a chargeable service, mobile operators might soon become data generators, making money from selling data about user activity to third parties, and receiving advertising commissions from third parties.

Like Facebook, mobile-for-advertising could be a compelling proposition, as there's a clear consumer benefit — a measurable exchange of value, with privacy on one side, and connectivity on the other.

It seems that this has come to fruition in the UK: O2, the Telefonica subsidiary, has launched a free Wi-Fi service, where a user pays with their data, rather than in money.

In return for 10GB of free Wi-Fi per month, you just need to agree to:
"information about you and your use of the Service including, but not limited to, how you conduct your account being used, analysed and assessed by us and the other parties identified in the paragraph above and selected third parties for marketing purposes including, amongst other things, to identify and offer you by phone, post, our mobile network, your mobile phone, email, text (SMS), media messaging, automated dialling equipment or other means, any further products, services and offers which we think might interest you."
You can opt-out at any time, but it would seem that (not unreasonably) this means that you lose access to the service.