Opportunities In Telecom Sector Arising from Big Data by Aegis and Deloitte
Every day about 2.5 quintillion bytes of data is created.1 This clearly indicates that we are in the era of Big Data. Big data has become a ubiquitous part of telecom industry because of the huge amount of data being generated every minute though connected world. The upgraded networks and the proliferation of smart devices has enabled the
telecom operators to have access to a wealth of information about their customers’ behavior, preferences, movement, etc. Not only human-to-human communication but also human-to-machine and machine-to-machine (M2M) communication generate huge amount of data which could be helpful for all industries including telecom. M2M
communication is expected to overtake human generated data in the near future.
According to Industry analysts, projections are of 32 billion devices generating 44 trillion GB of data by 2020.
The telecom and technology companies have been using legacy analytics for years, however, the full potential is yet to be realized by leveraging on the huge amount of data that is generated every day from social networks, search engines, government portals, online businesses and other applications through real-time predictive analytics.
The advanced analytics solutions can provide insights which can help in creating new business models and launch innovative products and services. By leveraging its own data and combining the data of different sources, telecom operators can gain deeper understanding of their customer interaction, product performance, and churn and thus
can improve upon the customer experience and value addition. Telecom companies can use these insights to help other industries such as agriculture, healthcare, education to name a few.
With the growth of technology, big data will become crucial to understand customer, business and the industry itself. Hence, data analytics is becoming an integral part of every business.
In a study conducted by “Telecoms Intelligence”, 47% of the operators had big data investments in place and 19% are expect to implement big data strategy at some point in 2015, with an additional 16% looking to implement big data in 2016 or beyond.
Hyper-competition, slow revenue growth, and increasing network costs will compel telecom companies to deploy advanced analytics solutions. Increasing network costs will also encourage operators to adopt analytics solutions, which will allow them to improve data traffic management and optimize the utilization and performance of
Although data analytics companies are experiencing 40% annual growth, there is a huge shortage of talent.3 Big data analytics need professional data scientists who can understand the technology of data analytics as well as the business objective of a telecom operator.
As telecom operators face high network and spectrum costs and intense competition, advanced analytics will help improving their profitability and gain a competitive advantage by enhancing customer experience and optimizing network usage.
Articulating a clear value proposition in use of analytics will help justify and attract investments.