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David Flower: 5G and Hyper-Personalization: Too Much of a Good Thing?

5G, IoT and edge computing are giving companies the opportunity to make hyper-personalization even more ‘hyper’.

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The author of this Expert Opinion is David Flower, CEO of Volt Active Data

It’s very easy for personalization to backfire and subtract value instead of add it.

Consider the troubling fact that we may be arriving at a moment in hyper-personalization’s journey where the most hyper-personalized offer is no offer at all. Nobody likes to be constantly bombarded by content, personalized or not.

And that’s the paradox of hyper-personalization: if everyone’s doing it, then, in a sense, nobody is.

5G and related technologies such as IoT and edge computing are giving companies the opportunity to make hyper-personalization even more “hyper” via broader bandwidths and the faster processing of higher volumes of data.

This means we’re at a very interesting inflection point: where do we stop? If the promise of 5G is more data, better data, and faster data, and the result is knowing our customers even better to bug them even more, albeit in a “personal” way, when, where, and why do we say, “hold on—maybe this is going too far.”?

How do you do hyper-personalization well in a world where everyone else is doing it and where customers are becoming increasingly jaded about it and worried about how companies are using their data?

Let’s first look at what’s going wrong.

Hyper-personalization and bad data

Hyper-personalization is very easy to mess up, and when you do mess it up it has the exact opposite of its intended effect: it drives customers away instead of keeping them there.

Consider an online ad for a product that pops up for you on a website a couple days after you already bought the thing being advertised for. This is what I call “noise”. It’s simply a nuisance, and the company placing that ad—or rather, the data platform they’re using to generate the algorithms for the ads—should already know that the person has already bought this item and hence present not a “repeat offer” but an upsell or cross-sell offer.

This sounds rudimentary in the year 2022 but it’s still all too common, and you’re probably nodding your head right now because you’ve experienced this issue.

Noise usually comes from what’s known as bad data, or dirty data. Whatever you want to call it—it pretty much ruins the customer experience.

Hyper-personalization and slow data

The second major issue is slow data, which is any data being used way too slowly to be valuable, which usually includes data that has to the trip to the data warehouse before it can be incorporated into any decisions.

Slow data is one of the main reasons edge computing was invented: to be able to process data as closely to where it’s ingested as possible in order to use it before it loses any value.

Slow data produces not-so-fun customer experiences such as walking half a mile to your departure gate at the airport, only to find that the gate has been changed, and then, after you’ve walked the half mile back to where you came from, getting a text message on your phone from the airline saying your gate has been changed.

Again, whatever you want to call it—latency, slow data, annoying—the end result is a bad customer experience.

How to fix the hyper-personalization paradox

I have no doubt that the people who invented hyper-personalization had great intentions: make things as personal as possible so that your customers pay attention, stay happy, and stay loyal.

And for a lot of companies, for a long time, it worked. Then came the data deluge. And the regulations. And the jaded customers. We’re now at a stage where we need to rethink how we do personalization because the old ways are no longer effective.

It’s easy—and correct—to blame legacy technology for all of this. But the solution goes deeper than just ripping and replacing. Companies need to think holistically about all sides of their tech stacks to figure out the simplest way to get as much data as possible from A to B.

The faster you can process your data the better. But it’s not all just about speed. You also need to be able to provide quick contextual intelligence to your data so that every packet is informed by all of the packets that came before it. In this sense, your tech stack should be a little like a great storyteller: someone who knows what the customer needs and is feeling at any given moment, because it knows what’s happened up to this point and how it will affect customer decisions moving forward.

Let’s start thinking of our customer experiences as stories and our tech stacks as the storytellers—or maybe, story generators. Maybe then our personalization efforts will become truly ‘hyper-personal’— i.e., relevant, in-the-moment experiences that are a source of delight instead of annoyance.

David Flower brings more than 28 years of experience within the IT industry to the role of CEO of Volt Active Data. Flower has a track record of building significant shareholder value across multiple software sectors on a global scale through the development and execution of focused strategic plans, organizational development and product leadership. This piece is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views expressed in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

Broadband Breakfast is a decade-old news organization based in Washington that is building a community of interest around broadband policy and internet technology, with a particular focus on better broadband infrastructure, the politics of privacy and the regulation of social media. Learn more about Broadband Breakfast.

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CES 2023: Commissioner Starks Highlights Environmental Benefits of 5G Connectivity

Starks also said federal housing support should be linked to the Affordable Connectivity Program.

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Photo of FCC Commissioner Geoffrey Starks (left) and CTA’s J. David Grossman

LAS VEGAS, January 7, 2023 – Commissioner Geoffrey Starks of the Federal Communications Commission spoke at the Consumer Electronics Show Saturday, touting connectivity assistance for individuals who benefit from housing assistance as well as the potential environmental benefits of 5G.

The FCC-administered Affordable Connectivity Program subsidizes monthly internet bills and one-time devices purchases for low-income Americans. Although many groups are eligible – e.g., Medicaid and Supplemental Nutrition Assistance Program enrollees – Starks said his attention is primarily on those who rely on housing support.

“If you are having trouble putting food on your table, you should not have to worry about connectivity as well,” Starks said. “If we are helping you to get housed, we should be able to connect that house,” he added.

Environmental benefits of 5G

In addition to economic benefits, 5G-enabled technologies will offer many environmental benefits, Starks argued. He said the FCC should consider how to “ensure folks do more while using less,” particularly in the spheres of spectral and energy efficiency.

“This is going to take a whole-of-nation (approach),” Starks said. “When you talk to your local folks – mayors – state and other federal partners, making sure that they know smart cities (and) smart grid technology…making sure that we’re all unified on thinking about this is exactly where we need to go to in order to drive down the carbon emissions.”

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CES 2023: 5G Will Drive Safer Transportation

More comprehensive data-sharing is made possible by the reduced latency of 5G, CES hears.

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Photo of Aruna Anand, Durga Malladi, and Derek Peterson (left to right)

LAS VEGAS, January 5, 2023 – Panelists at the Consumer Electronics Show 2023 on Thursday touted the potential for 5G to make transportation safer by enabling information sharing between vehicles and with infrastructure.

5G is expected to expand connectivity by attaching small cell connectivity equipment on various city infrastructure, including traffic lights and bus shelters. 

More comprehensive data-sharing is made possible by the reduced latency of 5G, said Aruna Anand, president and CEO of Continental Automotive Systems Inc., referring to connectivity communications times. Anand argued that making relevant information available to multiple vehicles is key to improving safety.

“We give more information about the surroundings of the vehicle to the car to enable [it] to make better decisions,” Anand said.

Durga Malladi, senior vice president and general manager for cellular modems and infrastructure at chip maker Qualcomm, described a 5G-enabled “true ubiquitous data space solution” in which vehicles and smart infrastructure – e.g., traffic lights and stop signs – communicate with one another.

Asked for predictions, Malladi forecasted an increased “blend” of communications and artificial intelligence technologies. Anand said 6G is expected to emerge by 2028 and make its way to vehicle technology by 2031.

Both realized and predicted innovations in 5G-enabled technologies have driven calls for expanded spectrum access, from private and public sectors alike. The Federal Communications Commission and the National Telecommunications and Information Administration, the respective overseers of non-federally and federally-used spectrum, in August agreed to an updated memorandum of understanding on spectrum management

Although relatively new, this agreement has already been touted by officials.

The FCC, whose spectrum auction authority Congress extended in December, made several moves last year to expand spectrum access.

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FCC Permit ‘Shot Clocks’ Provides ‘Predictability’ to Wireless Infrastructure Builds: T-Mobile

Shot clocks are important to industry players, argued T-Mobile’s Tim Halinski.

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Photo of Nancy Werner, partner at Bradley Werner, LLC.

WASHINGTON, November 8, 2022 – Panelists on a Federal Communications Bar Association web panel discussed Monday whether benefits of the Federal Communications Commission’s “shot clocks,” which limit how long states and local governments can review wireless infrastructure applications, outweigh the increased pressures they place on state and local governments.

A shot clock’s deadline puts pressure on city officials’ negotiations with providers over the terms of infrastructure projects, said Nancy Werner, partner at Bradley Werner, LLC, a telecommunications legal and consulting firm. They also “put a lot of pressure on local governments…to make sure (they) have a reason to deny” a provider’s application if an agreement cannot be readily reached, Werner added.

Tim Halinski, corporate counsel for T-Mobile, argued Monday that shot clocks are important to industry players, although he acknowledged the validity of Werner’s concerns. T-Mobile and other providers benefit from expeditious permitting processes, as they look to accelerate the build out of 5G wireless technology.

“There’s no one size fits all,” Halinski said, “But it’s at least the starting point and provides that predictability in deployment that we need.”

The comments come as the FCC fields comments on new standards that would streamline the division of costs between third party attachers and pole owners. Critics say the financial and time delay burden in getting access to these poles have slowed and will slow the expansion of broadband in the country.

In 2018, the FCC instituted shortened shot clocks for small wireless infrastructure projects: “60 days for review of an application for collocation…using a preexisting structure and 90 days for review of an application for attachment…using a new structure.” The commission said the new, limited timeframes would facilitate the deployment of wireless infrastructure.

The FCC’s revised shot clocks for small wireless deployments was but one portion of the agency’s so-called “Small Cell Order” of 2018, which aimed to promote the expansion of 5G. To accomplish this goal, however, the order sought to eliminate regulatory roadblocks by limiting state and local governments’ authorities over wireless infrastructure permitting and their own rights of way. This tactic drew criticisms from many experts and local officials.

Nonetheless, in August 2020, the United States Ninth Circuit Court of Appeals largely upheld the order in City of Portland v. United States.

“(The Ninth Circuit’s) decision is a massive victory for U.S. leadership in 5G, our nation’s economy and American consumers,” said then–FCC Chairman Ajit Pai shortly after the ruling. “The court rightly affirmed the FCC’s efforts to ensure that infrastructure deployment critical to 5G…is not impeded by exorbitant fees imposed by state and local governments.”

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