Google Shows Value of Location Data, Also Spotlights Why Much Telco Data has Little Value

Google Maps now is being used to produce Community Mobility Reports, using anonymous data, showing how busy retail locations are, in the wake of pandemic-driven stay-at-home policies. 

In Canada, for example, visits to retail and recreation sites are down 59 percent, while visits to transit stations are down 66 percent. Visits to workplaces are down 44 percent. In France, trips to retail and recreation locations are down 88 percent, visits to grocery stores are down 72 percent, while trips to parks are down 82 percent. Transit station trips are down 87 percent. 

source: Google

One observation: Location data has been touted as one data source mobile service providers possess that has value in a commercial sense. In the internet era, it also is clear that app providers have reasonable approximations to that same data store. 

So what entity ends up creating a useful information service for health planners and governments that actually uses location data to show whether citizens are obeying the shelter in place rules? Google, not any single telco, collection of telcos, or non-profit entities funded by telcos. 

Connectivity providers seem to insist they are not just dumb pipes, but perhaps reality suggests they truly are. There is a business model for access and transport, to be absolutely certain. 

But legitimate questions can be raised about the revenues which can be generated by that function in the ecosystem. Moreover, legitimate questions also can be raised about telco roles in creating apps, as well. 

To the claim that “we have lots of valuable data stores, such as location data.” one might well retort that “so do many app providers.” And at least in this case, Google has shown the ability to create useful value from such data stores, where no telco apparently has been able to replicate. 

That is not a new story. Most observers who do not work for telcos have argued in the past that telcos are not good at innovation. Worse, the “data stores” they often claim are potentially so valuable might be just that: “potentially” valuable. 

Put another way, maybe not so valuable, after all.