“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
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.