Personalised pricing for communications: Making data work for consumers
Fairness for customers is one of our strategic themes. As part of our work in this area, we want to better understand the emerging practice of personalised pricing.
Online services and connected devices have never been more important to our daily lives – helping us to work, shop and socialise wherever we are. Increasingly this gives firms access to data about our behaviour, interests and preferences. Technological advances mean this data can be combined and analysed in more sophisticated ways. These developments could give communications providers the ability to set different prices for different customers, based on individual characteristics and a prediction of how much someone is prepared to pay. We call this ‘personalised pricing’.
The extent to which customers receive personalised prices varies across the different sectors of the economy. This paper looks at how personalised pricing might evolve in the communications sector and the potential implications for customers.