Ofcom explains that the importance of online services and connected devices to our daily lives gives businesses 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. Ofcom calls this “personalised pricing”.
The extent to which customers receive personalised prices varies across the different sectors of the economy. The discussion paper looks at how personalised pricing might evolve in the communications sector and the potential implications for customers.