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Exchange of Subscriber Context Data between Mobile Operators and Brands Could Generate $44 Billion Annually

Syniverse today announced that the global market for advanced services based on mobile context insights could be worth as much as $44 billion annually. In the future, evolved and highly personalized mobile context insights may be worth much more, depending on consumers’ willingness to opt in and engage. A research report for Syniverse from economists at SEEC values the market for operators providing services to brands based on end-user context data and proposes a sustainable long-term market structure with balanced, mutual benefit between operators, brands and consumers.

Mobile context is the insight into subscriber information, behavior and location that is available to operators and that can be offered to brands for the purpose of improving customer engagement and experience, resulting in increased brand loyalty and revenue. The economists at SEEC worked with Syniverse to model and value the mobile context opportunity and identified two distinct markets -- context by geo-segment and context by individual:

  • Context by geo-segment - Operators provide information about anonymous subscribers in specific locations to brands targeting precise geo-markets. The value of this model is calculated to be as much as $44 billion to mobile operators annually.
  • Context by individual - Operators offer highly specific individual subscriber data to a single brand partner to provide tailored offers or information. The varying characteristics of particular vertical markets complicate the valuation of this market overall, but the opportunity may be worth even more than the context-by-geo-segment market. Calculations around just one use case – “Location-Based Fraud Services” – suggest a global opportunity for operators of $3 billion annually.

“Mobile context is the key to unlocking the full potential of mobile for consumers, the companies they trust and the operators that serve them. But while the revenue potential is phenomenal, success is dependent on delivering mutual benefits to all three parties,” said Jeff Gordon, President and CEO, Syniverse. “Operators can access new markets and deliver enhanced subscriber experiences, expanding their position in the mobile value chain. Brands can embrace new engagement capabilities, enhancing customer relationships with unrivaled targeting. And consumers can gain new mobile experiences tailored to them as individuals, with stringent controls over their privacy and preferences.”

The optimum business model for the exchange of mobile context identified by SEEC is a “platform” market where insight from multiple operators is aggregated onto a single, neutral, trusted platform serving as a market maker. In the context-by-geo-segment market, brands could bid in an auction for segments of time for the exclusive right to deliver information to groups of subscribers in an audience. In the context-by-individual market, brands could target specific subscribers based on usage, demographics, location profile and more for specific uses.

“An aggregated platform model is critical -- a piecemeal, ‘bilateral’ market diminishes the overall value of the opportunity by imposing complex, costly requirements on brands to negotiate and maintain agreements with potentially hundreds of operators to achieve ubiquitous reach for their customer bases,” said Sam Brown, Founder and CEO, SEEC. “A platform reduces the cost to brands of market participation to obtain ubiquitous subscriber reach, and we estimate that without a neutral, trusted platform to aggregate context insight, the value of the context by geo-segment market could drop by as much as 75 percent.”

Challenges around aggregating content and maintaining privacy and security are nothing new in mobile. Roaming platforms aggregate subscriber data from multiple operators and create a bridge between operators without the need for countless individual relationships, thus delivering the frictionless mobile experiences end users demand.

Gordon added that Syniverse is perfectly positioned to deliver the aggregated platform model.

“With our position as a neutral, trusted mobile enabler at the center of the ecosystem, we have built the technology for the aggregated platform model, and we are actively engaged in proof-of-concept trials with major operators and brands around the globe,” Gordon said. “Syniverse has the existing relationships and the record of expertise and innovation to enable operators and brands to work together to deliver the mobile experiences today’s consumers expect via mutually beneficial business models.”

About Syniverse

Syniverse makes mobile work for the entire mobile ecosystem, including more than 1,500 mobile service providers, enterprises, ISPs and app providers in nearly 200 countries and territories. We deliver innovative cloud-based solutions that ensure superior end-user experiences through always-on services and real-time engagement. For more than 25 years, Syniverse has been simplifying complexity to deliver the promise of mobility – a simple, interoperable experience, anytime, anywhere. For more information, visit www.syniverse.com, follow Syniverse on Twitter or connect with Syniverse on Facebook.

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