Deriving value out of analytics softwares in telecom – the question is how much ?

Mobile broadband will have the greatest impact in both mature and growth markets, but finding the right business models and managing costs will be the keys to operator success“. This is a direct quite from the an article in Analysis Mason on ‘Worldwide telecoms market forecast 2010–2014. (Click on this link).

The right questions are being asked given the following facts:
1. Decreasing ARPU
2. Increasing costs of operations
3. Regulatory challenges
et al.

Somehow in between, technology enthusiasts are proclaiming a lot on the capabilities of ‘analytics’ driving the face of the market. However, I have a small question with respect to the ability to use analytics for meaningful information in telecom.

The first question is, what is “meaningful information”? Possible answer is, anything that would help in increasing the top-line revenues for the telco. It obviously can be expanded to include a lot of things. 

The very next question is, how much would it cost to extract the information and therefore how much valuable the information extracted would be? Essentially what would be the ROI and how would one be able to guarantee the return on the investment.

The reason I ask is another similar discussion chain that is on the table for a long time. Data growth to kill mobile telco profitability in three years. Read the full article here.

In case telco profit in itself is dwindling, how can the investment on analytics softwares help? Well, I don’t want to sound cynical, but it is a question, I’m sure the answer of which would be available a few years down the line.

But today I ask this question is because, which-so-ever analytics platform/software et al we speak about needs to be able to check all the following:
1.       handle exponential volumes of data
2.       take care of hardware and storage requirements (although in theory it is very easy to have storage considerations ignored, as a DBA or an IT guy where the pain is, and the answer would be in handling and dealing with the volume of the data).
3.       derive the results in real-time, because, all information has a life-time and information lost is as good as opportunity lost.

Sounds like utopia!!! The question therefore is very simple: ‘How many known analytics softwares actually
1.       can handle exponential data growth
2.       derive meaningful information in real-time (or even near real time)
3.       operates at very little cost
4.       aids in adding to top-line revenues for the telco ?’

Given the situation of telecom business and revenues, I feel it may as well be a better idea to figure out a way of auditing softwares and processes being used, so as to optimize the costs and effort being spent on ‘trying to derive’ values out of business.

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2 Responses to Deriving value out of analytics softwares in telecom – the question is how much ?

  1. I could not access the article link. But from the first paragraph sounded like talking about data traffic and not transaction data- which is the key to analytics (a 100MB download may lead to a single or a handful xDRs amounting to a few bytes only!). Also, area like cost assurance, though analytic in nature stress more on improved bottom-line and fall out of the definition of topline growth. But to borrow from your previous posts on shift in operators' business model- the key question about the viability of analytics is if they can help correct a business model that is predicted to get outdated!Let me know your thoughts.

  2. Maverick says:

    @Maheedhar:Apologies that You could not access the article, I would send it to You.Thanks for sharing Your inputs, and I really could not agree more with You. What I am not sure is how much viable (surely taking into consideration cost effectiveness) would analytics be in :1. helping correct a business model2. in terms of driving increasing top-line, while aiding to reduce the bottom-line, because Profitability is one of the key metric for a Business.Somehow, analytics seems to be riding on the peak of the technology adoption life-cycle at the current moment. If you remember, 90ties was almost the age of robotics and AI. But in spite of investments of billions of dollars, not much practically feasible applications based on these could be developed. My question is, is there any possibility of 'Analytics' having the same fate?Do let me know Your comments.

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