Lower profit margins. Higher customer turnover. Does that sound like a familiar problem in today’s telco industry?
When you’re looking to improve the profitability of your telco business, inaccurate or delayed network forecasting can lead to reduced capacity, lost revenue, and unhappy customers.
It’s a difficult problem to wrangle for good reason – the sheer volume, variety, and velocity of today’s available data makes it hard to plan and optimize that data.
But if you’re asking the right questions, big data analytics and predictive analytics can help.
Here are two ways data analytics can make your telco business more profitable:
Increasing price wars are leading carriers across the board to drop prices and shrink profit margins. The first solution for many telcos is to turn to big data analytics to identify areas for operational cost savings across their networks.
The most frequent areas of big savings include software-defined networking, Wi-Fi offload/video redirect applications, and metro aggregation/load redistribution.
Carriers can also use big data analytics to analyze their inter-carrier traffic and identify cost-saving strategies for current contract rates.
To apply these solutions to your business, simply look for data you have collected in relation to your operating costs. What insightful questions can you ask to help reduce your costs and increase your profit margins?
Recently, several wireless carriers calculated the real costs of acquiring rival customers. With the results of this data, they decided to offer cash incentives for buying out competing customers.
Telcos can leverage network data and other data sources across the enterprise to calculate early termination fee (ETF) offers, then compare the anticipated costs to the actual costs.
Predictive analytics can help a telco figure out anticipated costs of such programs, the estimated profitability of certain segments, and detailed information about which customers are likely to be interested in them.
Powerful, scalable, and robust data analysis solutions enable telcos to support their network infrastructures in a more timely and responsive manner. Predictive analytics – especially when accessed by a single dashboard interface – can enable your telco to shrink costs and keep profit margins high.