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Approximately  27% of communications service providers (CSPs) have no strategy for ‘big data analytics’ in 2013, and the vast amount of information that CSPs hold about their subscribers has been largely untapped, according to Analysys Mason.

bigdata

 

The term ‘big data analytics’ is associated with capturing and analysing consumer behaviour using the Web, and can have huge benefits in terms of both revenue generation and customer loyalty. The research firm’s report titled Big data analytics: how to generate revenue and customer loyalty using real-time network data, analyses the big data market and provides recommendations for CSPs.

 

According to the report, the volume of data on telecoms networks has increased a thousandfold in the last 20 years, and more data has been created in the last two years than the preceding 50. “The data that CSPs are creating has four key attributes,” explains Patrick Kelly, author of the report. “The data has volume (there is lots of it), variety (from call logs to M2M sensor data, it is extremely varied), velocity (it can be gathered in real time) and value (if structured and analysed correctly, it can be extremely valuable and profitable).” However, the report also cautions that CSPs should strive to understand the outcomes for specific areas of their businesses before investing in big data and analytics. The report estimates CSPs can increase their net profit margins by 12% with the right cross-marketing and sales promotions, and customer retention can be increased by 0.2% with effective loyalty programmes.


“Moreover, CSPs can use these insights to defer capital investments in the radio access network without degrading the service, saving hundreds of millions in capital spending,” adds Kelly. Furthermore, the report indicates only a fraction of the data that traverses telecoms networks needs to be captured for analysis. Three types of data are important for CSPs: customer data (usage, location, device, etc.), market intelligence (dimension, demographics, segmentation, etc.) and real-time network data (service quality, call centre efficiency, revenue optimisation, etc.).

And, CSPs spent $122 billion on telecoms IT worldwide in 2011, which represents 6.1% of the telecoms revenue of 2 trillion. The Caribbean and Latin America (CALA) was the region with the highest year-on-year telecoms revenue growth rate, at 13%, as well as the highest growth in IT spending, at 15%. By comparison, IT spend declined by 2% in Europe, the Middle East and Africa (EMEA) over the same period. Mobile CSPs in developed markets spent $19 per subscriber per year on IT in 2011, while those in emerging markets spent $4 per subscriber per year.     

-----Analysys Mason

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