Big Data in Telecom:  A Big Opportunity!

As the telecommunications industry goes through troughs and ridges, the only constant characteristic of the industry is the abundance of types and volumes of data available to it. While the industry had high expectations for Big Data in the early years, this period of vibrancy was followed by a period of doubt. Now, as things get up again, let's see how trends have evolved over the past five years.

The basics

In a 2012 industry-wide study, IBM determined that successful implementation of Big Data first required defining business needs and implementing implementation. However, the study also underscored the need to modernize infrastructure over time and focus on achieving short-term results, with a focus on client-centered outcomes.

A different strategy

The following year, in 2013, a report by Booz & Company, now known as Strategy &, underscored the need to adopt the reverse strategy, start with the data and then identify ways to leverage the potential rather than starting requirement and then working down. The strategy consulting firm based its recommendation to overcome the situation of the benefits of Big Data that was not realized in a concrete way at that time. The cabinet recommended that pilot programs be put in place to implement this bottom-up strategy. The report clarified the benefits of large data

Real-time packet inspection to improve the quality of network performance

Real-time analysis of call data to identify fraudulent activity

Marketing activities based on customer location and events on social media

Monetize information about anonymous customers

Internal compared to external

Arthur D. Little said in a 2015 report on massive data in telecommunications that monetization opportunities within a telecommunications organization are much higher than those by selling data to external customers or partners. The Management Consultancy report has identified the critical aspect of the business that needs to make the strategic decisions that would lead to the successful implementation of Big Data. The report stresses that telecom companies need to determine the exact prospects for realizing benefits in B2C, B2B and third parties, and that the strategy has therefore been developed for implementation. Strategic planning was considered essential to unlock the potential and generate returns through Big Data implementations.

The deployment of Big Data identified in the Arthur D. Little study

Ability to find the exact cause of the call decline

Improve data plan renewal rates by analyzing renewal templates to determine the best time to contact the customer, etc.

Create personalized marketing plans by monitoring social media

Projections for the short term

Ericsson in a October 2015 report, while estimating a compound annual growth rate of 50% for the Big Data-based telecom analytics sector and a market size of $ 5.4 billion at the end of 2019, identified three basic components. They optimized operations, enriched operations, and created new business opportunities. In the third component, third-party B2B revenues and the related issue of privacy were discussed. The inadequacy of the regulation to provide sufficient robustness was raised and it was recommended that confidentiality be kept in view at every stage of the development of a product or service.

Current state of large data analysis in the telecommunications industry

In an article published in June 2016, McKinsey & Company reported that 30% of respondents (representing a quarter of the industry's turnover) had invested in Big Data and analytics. In this group of 80 companies out of a total of 273 Telecom companies and freelance marketplace, those whose profits were up 10% attributed the results to the investments. Most reported a slight increase in profits, while the negative earnings growth reported by a few was attributed to poor data quality and lack of skilled labor. Returning to the Arthur D Little study, he recommended that companies with lower levels of maturity in data processes and companies without adequate workforce opt for a centralized mode of operation. It has been recommended to more mature companies with a skilled workforce