If Google, Facebook or WhatsApp have spent millions entering years at the expense of our data, why not do something similar? And why not ask for help instead of charging against them? It is just the project in which he is immersed Alonso, for which he has counted among others with the support of Sheryl Sandberg, the number two of Facebook. Something unthinkable a few years ago. The idea of Alonso is ambitious: to create an application called Aura that allows us to know all the data that Telefónica handles about us and to choose if we want to share them (or not) with third companies in exchange for receiving a consideration.
Before we were not enemies of WhatsApp or Google, nor are we now. Sometimes there are discrepancies, but it is logical
"A good example is CaixaBank: they offer you a discount if you let them see the risk of default on Telefónica. Knowing if you have been a good payer and client with us for 15 years may interest other companies. Offer people something in exchange for knowing it, all happy, "smiles Alonso. On paper, round. But there are many doubts to clear. The most important: where is the border between protecting our privacy and building a big business thanks to it?
Question: You have allied with Facebook to launch the fourth platform. From wanting to plunge WhatsApp or Google to be its partners. What a change.
Answer : I can not tell you much about what happened before, I was not [laughing]. But since my arrival there has never been any intention of getting in the middle of an internet firm, or blocking it. Before we were not enemies of WhatsApp or Google, nor are we now. Like all companies, sometimes there are discrepancies, but of course.
The Chief Data Ofiicer of Telefónica, Chema Alonso, during the presentation of 'Aura'. (Photo: EFE)The Chief Data Ofiicer of Telefónica, Chema Alonso, during the presentation of 'Aura'. (Photo: EFE)
P. Google and Facebook have set up an empire thanks to our data. Now do you want to do the same?
A. No, it's different. We have been doing something similar to the fourth platform for some time. In 2012 Telefónica launched Dynamics Insights, a service with which we sold general information to companies, not aggregated and anonymised data. It is a business that works very well and we have it all over the world and for a long time. Our priority is mobile communications, hence 70% of revenues. The remaining 30% are digital services. But where we are not going to get involved is never in the sale of personal data, as other Internet companies. We get along with them, but each one has its model.
Q. Define the fourth platform in a couple of phrases for everyone to understand.
A. The idea is to give customers three powers: one, that the services of Telefónica by those who pay each month to operate in the simplest way possible. Two, transparency with all the data generated by the use of these services. And three, give them back, let them be the owners of all that and decide what they want to do with them. And all through an application of artificial intelligence managed by voice like Aura.
"What I do not want is for someone to cage and steal the data to the customers. Let's control who connects, but without being a guardian"
Q. How are you going to make money with Aura?
A. It's very simple. 45% of the calls made to the call center are to clarify doubts about the bill, about contracted services or about television programming. The annual cost of managing that is brutal. If we manage to reduce it a bit, simply giving customers what they ask for, which is more clarity and information, would be a breakthrough. But there is another way: to stay more customers with us instead of changing operators because they can manage their router by voice or ask the mobile in five seconds to record an episode of Game of Thrones. And we let them do what they want with their data. And if someone is willing to pay for them, they have to pay the customer, not us.
Q. On this last, you are closing agreements with CaixaBank, Facebook ... Can any company join the new platform and access the data with our consent?
A. Yes, but we will be very careful. What I do not want is for someone to cage and steal the data to customers. We will control who connects, but without being a guardian. Do you have something good that you might be interested in? Do you meet a number of security requirements etc? Ahead. We have to define these principles, but we seek partners that enrich people's lives.
The president of Telefónica, José María Álvarez-Pallete. (Photo: EFE)
The president of Telefónica, José María Álvarez-Pallete. (Photo: EFE)
Q. What kind of economic deals will you close with the companies joining the platform?
A. In these first agreements we are not charging anything. It is more valuable to us that the client is interested and that we have to charge something to the companies. We won more like this. It is what we think now, but we do not discard in the future to charge to connect to our platform. To this day we have not decided.
Q. It sounds like Telefonica is becoming just what I criticized about Facebook or Google: selling aggregated user information to other companies.
A. It is not the same. In the case of Facebook, I do not care that I do business with my data, I accept it because it brings me much value. But we are not in that world. If one day we decided to charge other companies for connecting to Aura, what we would be doing is a typical Telefónica business, which is charging for the use of an infrastructure. It is the same as when Google charges for using the Maps API, does not charge for the information of those maps, it charges for the consumption of the connection. It seems to me a totally licit business model.
P. Licit, but confused. Are not you disguising as a benefit for privacy something that is actually a business based on our data?
A. That is not our goal now. There is no business model, that's why we do not talk about it. For example, imagine a company that wants to do a study of how pollution in cities affects the diseases of the population. And they need data of 80,000 people. They can do it via surveys or connect to our platform. We have tried a case like this with Carlos III University: it connects to the platform, we ask for permission from the clients, we explain what data they were giving and how they would receive a payment of three euros in return. Whoever accepts, who does not, does not. It would be extremely twisted to say that that is to sell data, when in fact it would be to charge for using the API, the connection, and to take an insight or a data that is totally anonymous. I repeat: we are not selling data.
There is no business model right now. There is no excel where we calculate how much we are going to win. Really. Does not exist
Q. Not directly, but you sell the connection to a platform that provides information based on customer data.
A. That already happens. When you enter Google, you look for your favorite restaurant and it tells you that people spend there between 2 and 3 hours per visit, that's an 'insight'. We have data to offer the same, give better service and our customers do not leave. We have made a commitment to this platform to improve customer service. But right now there is no business model. There is no excel where we calculate how much we are going to win. Really. Does not exist.
Q. When can we use Aura in Spain to check it?
A. In the next 12 months it has to be ready and Spain will be among the first countries. I do not want to commit to any date that the boss already gives me lots of sticks so he does not say anything [laughs]. I can only comment that in Spain the thing is very advanced.
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