Summary
Big Data' has become a buzz phrase for companies in all sectors in recent years, and telcos are at the forefront of trying to utilize data in a bid to achieve their stated business objectives. This report examines the current situation with regard to big data analytics among communication service providers, for which use cases these organizations are harnessing the technology and to what extent these efforts are proving successful.
Key Findings
Explore key drivers and challenges to Telco big data and analytics implementations
Assess big data and analytics adoption
Examine Telco strategies and best practices for commercializing big data and analytics solutions
Gain insights on Telco investment plans for big data and analytics implementations over the next 2-3 years
Identify the main use cases for current and emerging big data and analytics implementations.
Reasons To Buy
Why is big data analytics becoming increasingly important for telcos?
What are the challenges to BDA implementation?
What benefits does BDA bring?
What are some working examples of telcos using BDA?
Key Highlights
Telecoms operators are embracing big data analytics (BDA) with enthusiasm, but while many report that BDA is fully operational and already contributing benefit to their organizations others are still at the exploratory stage of addressing its potential.
A range of use cases for BDA exist in the telecoms environment including network optimization, fraud detection, customer experience management, churn reduction and data monetization. Customer satisfaction / churn reduction is the most important driver of BDA implementations and linked to this is the ability to personalize services for individual customers which is the next most important rationale.
Set against the backdrop of an unprecedented challenge facing operators to differentiate themselves from the competition it is clear that those operators who make BDA work for them can put themselves at a significant advantage over their competitors. While operators are very reluctant to quantify to what extent they have benefitted already in terms of revenue generated or costs reduced it seems clear that potential benefit is huge. But of course all operators cannot benefit in equal measure. The extent to which BDA implementations are successful is set to be a significant factor in determining who the winners are and who will lose out.
Table of Contents
Overview
Catalyst
Summary
Big data increasingly important in competitive marketplace
BDA to play increasingly important role in helping service providers address challenges of today’s marketplace
Global telecom services increasingly commoditized and competitive, customers value experiences more
Telecoms operators typically work with top vendors and service providers when implementing BDA
Regulation and privacy legislation are key issues, particularly when selling data externally
Churn reduction driving BDA, investment & results mixed as challenges remain
Survey of participants in BDA in the telecoms sector shows different stages of implementation
A number of factors drive telecoms operators to implement BDA but customer satisfaction/churn reduction most important
Level of investment in BDA and operational structure vary
There are a number of perceived challenges to BDA implementation
Customer satisfaction improvements the key perceived benefit for operators when implementing BDA
Reasonable levels of satisfaction achieved across a range of measures
BDA operator/suppliers survey: Key insights
BDA operator/suppliers survey: Challenges to BDA implementation
Ways to address BDA implementation challenges
Telco BDA strategies, investments & example use cases
AT&T has a long tradition of groundbreaking research and development and BDA now plays a central role in this effort
Service improvements have been achieved
AT&T analyzing traffic patterns in bid to enhance network
Orange is leading the way in harnessing BDA to monetize data, impressive given European data privacy laws
Transport
Tourism
Trade & distribution
Flux Vision counts more than businesses and communities as customers
SingTel's BDA initiatives focus on improving customer insights in a retail setting
SingTel has boosted its efforts via partnerships
SingTel has earmarked significant funds to invest in analytics-driven initiatives involving advertising, mobile video, cyber security and smart cities
Through M&A and partnerships Telefónica has demonstrated a commitment to embrace BDA
Mergers & Acquisitions
Telefonica investing significant funds
BDA use cases in the telecoms environment
Fraud detection less popular use case for BDA implementation than others, but an important application nonetheless
Using analytics to improve customer satisfaction can result in additional revenue opportunities
Some BDA providers harnessing technology to provide services their customers can use to service their own
Conclusions
BDA will play a major role in helping operators differentiate themselves
Successful implementations of BDA requires operators to change their traditional internal culture
A vast array of companies are involved in the BDA market
Customer satisfaction / churn reduction is the most important driver of BDA implementations
Cultural change needed
Operators need to recognize that BDA can play a role in helping them survive while others fail
Focus on data privacy and security is increasingly crucial
Appendix
Sources
Further Reading
Ask the analyst
About MarketLine
Disclaimer
List of Figures
Figure 1: Mobile and Internet Penetration, 2015-2020 (%)
Figure 2: Global ARPS 2015-2020 ($)
Figure 3: Players in BDA in telecoms
Figure 4: Considerations in terms of data protection and security
Figure 5: Status of big data analytics implementation
Figure 6: Drivers of big data/analytics implementations
Figure 7: Extent of financial investment in BDA
Figure 8: BDA structure within organizations
Figure 9: Challenges to BDA implementation
Figure 10: Perceived benefits of BDA implementation
Figure 11: Extent of delivery of benefits
Figure 12: BDA in telco sector schematic
