Bulk of Big Data remains untapped
Among communication service providers (CSPs), 27% have no strategy for Big Data analytics in 2013, according to new research from Analysys Mason.
According to the report, the volume of data on telecoms networks has increased a thousand-fold in the last 20 years, and more data has been created in the last two years than the preceding 50. Yet, the vast amount of information that CSPs hold about their subscribers has been largely untapped.
“The data has volume (there is lots of it), variety (from call logs to M2M sensor data, it is extremely varied), velocity (it can be gathered in real time) and value (if structured and analyzed correctly, it can be extremely valuable and profitable),” said Patrick Kelly, research director for Analysys Mason’s telecoms software research division.
However, the report also cautions that CSPs should strive to understand the outcomes for specific areas of their businesses before investing in big data and analytics.
The report estimates that CSPs can increase their net profit margins by 12% with the right cross-marketing and sales promotions, and customer retention can be increased by 0.2% with effective loyalty programs.