Why telcos shouldn’t fear offering identity verification services

13th May  |  
3 minutes

“Customer churn” are the two words telcos fear most when introducing new services. Anything that could potentially rock the boat with consumers is therefore avoided at any cost – and rightly so. However, there are cases where perceived risk is just that: a perception rather than a realty. In such cases, risk aversion can lead to missed opportunities for telcos to grow revenue or move into new markets. This is worth bearing in mind when considering identity verification solutions for digital marketing. As we shall see, the trusted relationship that consumers have with their telco will ensure that new ID verification solutions are embraced and that they will not lead to customer churn. 

What are identity verification solutions? 

Authentication and verification are becoming increasingly important online. Retailers and banks use secure ID verification to ensure that online users are who they say they are and thereby protect against fraud. But it also has increasing relevance in digital marketing, where advertisers and publishers need to use identity verification to recognise users across websites and apps. 

The latter use case has been given renewed impetus by the devaluation of third-party cookies and Mobile Advertising IDs (MAIDs), which are in the process of being withdrawn over privacy concerns. Given that 71% of consumers prefer personalised digital advertising, advertisers and publishers need to find new identity verification solutions to enable this personalization without tracking individuals online.  

Consumer identification for a privacy-first internet 

This is a void that telcos are perfectly positioned to fill. Using their network intelligence, which of course spans websites, mobile apps, and devices, telcos can verify pseudonymised identifiers provided by publishers. In this way, telcos can help brands and publishers recognise users across the anonymous and authenticated web without needing to know who these users are as individuals.  

In addition to verifying audiences, telcos can also play a role in activating the same. In Novatiq’s proposal, when a user visits a third-party website, they trigger a dynamic ID which is then matched with the verification identifier in real time behind the telco’s firewall. This approach guarantees security and guarantees that no personally identifiable information (PII) is used in the bidstream, ensuring that telco subscribers are protected. 

Consent requests in trusted ID verification  

For any verification ID solution to be compliant with the General Data Protection Regulation (GDPR) and other emerging privacy regulations, users must give their consent. Consent is requested from users by the publishers or brands using Consent Management Platforms (CMPs) every time a user visits a site.  

For the verification ID consent is logged for each visit and verification only occurs when consent has been granted. This user-first approach improves the web experience, enabling people to benefit from personalised advertising delivered by their operator ,with whom they already have a strong relationship and therefore trust to respect their consent directives. 

Indeed, rather than threatening customer churn, telco verified IDs promise to reduce it. This is because telcos themselves will be able to activate their own first-party intelligence and use it to build a better understanding of their customers. As a result, telcos will be able to offer more relevant customer experiences that drive value for subscribers and help build loyalty.  

A new age for identity verification 

Telcos are always on the look out for new sources of growth and new ways of improving the services they offer consumers. Identity verification solutions will enable them to achieve both goals and find a new role for themselves at the heart of the digital marketing ecosystem.  

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