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Adapt or Die: New business models for CSPs depend on groundbreaking analytics

Bruce Dahlgren, senior vice president, Enterprise Services and Managing Director, Asia Pacific and Japan, HP | July 10, 2015
How communication services providers/telcos can harness their rich sources of data for maximum advantage by making smart, strategic decisions on the right technology mix.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

Every moment with a connected customer is a make or break experience. Communications services providers (CSPs) are only too aware that underperformance in delivering a quality customer experience will lead to customer churn.

Disruption from new over-the-top (OTT) content providers with new business models, threatens traditional revenue streams for CSPs. They face cost inflation where increasing costs of IP networks outweigh revenues. Moving beyond commodity services to value-added services is the key to halting profit erosion. 

Uncertainty and disruption caused by this rolling landscape require CSPs to establish new business and operating models quickly, and come up with alternative revenue resources.

For the majority, a key to finding the correct solution is close at hand. Every telco has vast sources of data that can prove invaluable. The challenge is working out how to harness this rich source of information for maximum advantage - and that involves making some smart, strategic decisions on the right technology mix.

How to make good use of rich data

Historically operators have not taken advantage of the data they hold. Monetizing the value of data is now the means by which CSPs can generate new revenues to offset the commoditization of traditional services and compete in the over-the-top (OTT) market. It also has the potential to enable CSPs to target cross-sell and up-sell opportunities among the existing customer base.

Big Data applications that are context aware place CSPs at the heart of the digital value chain. By combining real-time insight such as location, interests and activities, with demographic knowledge such as customer relationship management information, habits, and preferences, unparalleled marketing power can be achieved.

There are three core areas where CSPs can maximize the value of data:

  • The use of big data to target products and offers to increase loyalty and personalize the customers experience according to their individual needs
  • The use of network and IT data to increase operational efficiencies and improve effectiveness of the customer experience
  • The use of operator data to identify new business models and look for partnering opportunities with OTT service providers, that enrich customer services and extend subscriber revenues

The opportunity is there to insert an organization into the digital value chain and be more than a network infrastructure provider.

Sourcing customer-centric big data

With this wealth of data available, the CSP that can harness the full value of analytics will provide the best platform for success. The CSP should be aiming to improve the customer experience and generate new revenue streams through more effective analysis of:

  • Network data -gain better network performance from optimization opportunities identified through analytics of usage records, performance monitoring, fault monitoring and call management data
  • Subscriber data from the network registry, operations support system and billing systems
  • Application data - harnessing value from unstructured data such as traffic analysis, web/search/SMS/email, social media, mobile apps and device data
  • Market data to build a better picture of the customer including profile data, demographics and segmentation


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