Is ‘segmentation’ going to mean individual pricing?

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In May, Verizon’s new CEO Dan Schulman spoke at a MoffettNathanson conference, and one thing he said stunned me. Schulman said, "We're so used to doing things the way we did them, as opposed to being massively analytical.” And then he said that Verizon will be looking at not just "like four segments," but "hundreds of thousands of segments." Industry executives have been talking about segmentation for a while now, and it hasn’t been immediately clear precisely what they’re planning. Sure, operators have always had some segmentation. That’s why they offer different speed tiers to meet different demands. They also offer different plans for seniors and for lower-income customers, which could also be considered segments. But Schulman’s comment made it sound as if Verizon could potentially take customers’ personal data and use it to customize plans and prices at a much more granular level. It makes me wonder if perhaps telecommunications operators are thinking about individual pricing as their ultimate goal.

 


Opinion: I’m afraid telco ‘segmentation’ is going to mean individual pricing