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Analytics, the wind of renewal blowing over Telco

By 29 July 2019 No Comments

Data analytics offers Telco many development opportunities

As architects of global interconnection and of the resulting economic upheavals, Telco – which sell telecommunications products and services, whether they are equipment manufacturers or operators – are also undergoing profound transformations and face many challenges.

Firstly, these challenges are technological. The deployment of 5G networks and IoT services can enable Telco to stabilize their B2B revenues and even generate new ones. In addition, Telco companies face security issues. Protection of personal and business data is an increasingly sensitive question for consumers, even though the networks must deal with hacking and fraud threats. Finally, Telco are a place of strong competition based on improving services and customer experience – prices can no longer be lowered to make companies stand out. This competition is taking place both between Telco themselves and with new players, the OTTs (for “Over The Top” actors), like Netflix, Hulu for video streaming, or WhatsApp for messaging. For example, the number of instant messaging users, a competitor to SMS, has increased from 1.1 to 3.6 billion between 2013 and 2016 [1].

Faced with this complex situation, Telco have a resource at their disposal to overcome these challenges and ensure the sustainability of their activities: data.
Data exploitation and analysis can enable Telco to better secure networks, optimize internal processes and offer new services. Thus, analytics can help these actors improve the customer experience through better customer understanding and management. In the long term, churn – of which the cost is very high for Telco – can be reduced, by up to 15% according to McKinsey [2]. In addition, BI and analytical tools can enable less costly networks management and maintenance by optimizing the allocation of technical and human resources and by predicting networks outages and usage.

However, while Telco have privileged access to this resource – the exchange of data being their core business – their exploitation of it remains limited. This situation is explained on the one hand by internal structures and organisations that are too restrictive and inflexible, and on the other hand by analytical and BI processes that are too siloed from a technical point of view. If Telco’s adoption of best practices for efficient data is thus necessary, so is the adoption of new tools for instant access to the entire data.

Therefore, how can Telco benefit from data and its exploitation?

Read the white paper “Reinvent Telco: unlock the benefits of data analytics?”, soon be available.

[1] EY, 2017, Digital transformation for 2020 and beyond – A global telecommunications study
[2] McKinsey, 2018, Maximising value from advanced analytics in Telco service operations

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