The telecom industry worldwide is finding itself in a highly complex environment of decreasing margins and congested networks; an environment that is as cut throat as ever. In a bid to survive and have an edge over their competitors, tele companies have begun to embrace big data. A new IBM study on how telcos are using Big Data shows that 85% of the respondents indicate that the use of information and analytics is creating a competitive advantage for them. Big data initiatives promise to improve growth and increase efficiency and profitability across the entire telecom value chain. Yes Big Data to the rescue again!
Big Data can optimize service and impact the bottom line by analyzing network traffic and call data records. It can improve quality of service and routing traffic more effectively. By analyzing call data records in real-time, tele companies can identify fraudulent behavior and act on them immediately. The marketing division can tailor it’s campaigns to better target its customers and use insights gained to develop new products and services.
In his recent blog, Robert Fox gives some interesting examples of how tele companies are using big data and the insights thus gained to drive new revenue streams in completely different industry areas. For example:
Telcos in India are also realizing that Big Data can increase Average revenue per user (ARPU), reduce customer churn, drive revenues and enhance market shares. They are beginning to grow their business by investing in analytic tools that go beyond traditional business intelligence technologies. And as these analytic tools help telcos extend their reach, their role will transition into more than that of a traditional telephone service provider. The data they collect will become so valuable, that they will use it not only to improve their own business, but also to influence new industries. They will spread their wings and become information providers and content distributors.
Yes the future is indeed ripe for big data in telecom.
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