CSPs lack Big Data strategies: Analysys Mason
- 08 February, 2013 10:49
Twenty-seven per cent of communications service providers (CSPs) has no strategy for Big Data analytics in 2013, and the vast amount of information they hold about their subscribers remains “largely untapped,” according to research firm, Analysys Mason.
In its Big Data analytics: how to generate revenue and customer loyalty using real-time network data report, the firm reveals that 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.”
Analysys Mason research director and lead author of the report, Patrick Kelly, said the data CSPs are creating has four key attributes.
“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 analysed correctly, it can be extremely valuable and profitable).”
The report also recommends that CSPs investigate the outcomes for specific areas of their businesses before investing in Big Data and analytics. It estimates that CSPs can increase net profit margins by 12 per cent with correct cross-marketing and sales promotions, and customer retention can be increased by 0.2 per cent with effective loyalty programs.
In addition, Kelly identifies three types of important data for CSPs: customer data, market intelligence, and real-time network data. The report indicates this comprises a fraction of the data that traverses telecoms networks.