Managerial Application of Analytics

CIA 3
A Report submitted in partial fulfilment of the requirements for the degree of
Master of Business Administration 2020-2022

Application of Analytics in Telecommunication

Industry
By

Submitted to- Laxminarayanan G

MBA PROGRAMME

SCHOOL OF BUSINESS AND MANAGEMENT CHRIST (DEEMED TO

BE UNIVERSITY), BANGALORE

JULY 2021
INTRODUCTION

Telecommunications Industry is the second largest market in India. Wireless, wireline, and
internet services are the three segments of the telecom market. In March 2021, the country's
overall subscriber base was 1,201.20 million. Teledensity of rural customers increased to 60.27
percent in March 2021 from 58.79 percent in March 2020, indicating that demand from the rural
sector has the ability to rise in near future. India is also the world's second-largest internet
subscriber country and also one of the world's largest data consumers. According to TRAI, the
average monthly wireless data usage per wireless data subscriber was 11 GB in FY20. The
number of app downloads in the country climbed from 12.07 billion in 2017 to 19 billion in
2019, with 37.21 billion predicted by 2022F. In the third quarter of FY21, India's total wireless
data use increased 1.82 percent quarterly to 25,227 PB. In the third quarter of FY21, 3G and 4G
data usage contributed 2.81 percent and 96.48 percent, respectively, to the overall volume of
wireless data usage. In the same quarter, 0.71 percent of people used 2G data.

TELECOMMUNICATION INDUSTRY ANALYSIS USING PESTLE-

Political Factor-Regulation is a topic that comes up a lot when talked about telecom industry.
The government has a preconceived notion of how telecommunications should be managed and
people have a different opinion. Wifi and the internet are now a part of everyday life. Customers
want the government to recognize internet access as a fundamental human right as it's necessary
for many academic and professional pursuits. Even applying for a job is an online process;
visiting a company's website and uploading a resume to their servers are required. There is a
fight going on for and against net neutrality. Customers believe that service providers and the
government should regard the internet and data in the same way. Service providers, for example,
would be prohibited from limiting internet and data rates under net neutrality.

Economic Factors- The telecommunications business is influenced by interest rates, inflation,

and taxation. Expenses can have an impact on the pricing per plan that is offered to clients.
Building towers and resources in remote places is costly. Customers who live outside of major
cities are affected. The demand for telecommunication resources grows as more residences are
developed. Prices (plus revenue) may rise as a result, depending on location, the number of
clients in a given area, and the demand for communications services.
Social Factor-In Telecommunications' horizontal expansion is a big constrain. In particular,
expanding in rural areas is challenging (and expensive). When it comes to purchasing internet,
cellphone, and television packages, customers have only a few options. Telecommunication
businesses are in charge of both internet and mobile carriers because they are monopolies.
Customers require these packages in order to interact with friends, participate in social media
challenges, shop online, locate stable jobs, and more. Telecommunication has become a very
significant part of the typical person's daily life.

Technological factor-Telecom services are becoming more and more in demand. Telephone
companies, for example, are now installing fibre wire in their buildings instead of copper.
Phones are becoming smaller, transforming the telecom industry into a mostly wireless one.
Voicemail, caller ID, and messaging are all standard features on smartphones. People nowadays
expect to be able to access the internet when on the move. As a result, data is included in
cellphone plans. Wi-Fi has also been installed in buses and automobiles. This 'need' leads to
increased investments in firms that have a significant impact on the development of telecom
technologies in PCs, cellphones, and laptops.

Legal factor- Legislation has a significant impact on the telecommunications business. Issues
with the government, monopolies, and customers, in particular. However, the telecom industry
has permitted both the import and export of items (international smartphones, for example).
Allowing for increased innovation in telecom technology devices.

Environmental factors- Climate change and global warming may have an impact on how
telecommunication products reach their intended audiences. Employees must adapt to changes as
technology advances in terms of employment. Products come and go, and they are frequently
replaced by something "better" (depending on who is asked, customer or company). The old
version becomes obsolete or redundant. As a result, those who worked on previous versions of
the software may suddenly be unemployed. Customers have high expectations, and telecom
businesses are expected to meet them. However, because the telecom industry's needs change
frequently, it's impossible to predict which technology will survive, improve, or be phased out.
APPLICATION OF ANALYTICS IN TELECOMMUNICATION
INDUSTRY

Analytics for improving user quality of experience

(Zheng, et al. 2016) explores various means of integrating Big Data analytics with network
optimization towards the objective of improving the user quality of experience. The study
proposes a framework of Big Data-Driven (BDD) mobile network optimization in which
efficient data analytics is deemed as the key enabling technology for reducing deployment costs
and increasing network efficiency. The authors studied the features of Big Data from both the
users and operator’s perspectives, which can be used together for mobile network optimization.
Case studies of the BDD schemes were presented to demonstrate possible new solutions to
improving the performances of mobile networks towards 5G. The research concludes that with
the integration of the Fifth Generation (5G) emerging mobile networks with Big Data analytics,
the quality of our daily mobile life is expected to be tremendously enhanced.

BI for CRM, Network Fault Isolation & Prediction and Fraud detection

Telecommunication companies today are operating in highly competitive and challenging

environments. The huge volume of data is generated from various operational systems and these
are used for solving many business problems that required urgent handling. (Madhuri, 2013)
describes the main application areas of BI and Data Mining in the telecommunication industry
include fraud detection, network fault isolation and improving market effectiveness. The author
says that the recent developments in the Data Mining and BI fields and the implementation and
enhancement of existing techniques and methods ensure the continuous growth and compatibility
of telecommunication companies that make use of them.

Machine learning for predicting customer churn

Currently, giant corporations including the telecommunication industry are battling with the
problem of customer churn. (Labhsetwar, S.R., 2020) focuses on implementing machine learning
(ML) algorithms to identify potential churn customers, categorise them based upon usage
patterns, and visualize the analysis results. The study concludes that XGB Classifier and SVM
also provide great prediction capability to tackle the menace of customer churn haunting the
telecom industry.

BI for decision making

The decision-making (DM) systems play a vital role in the telecommunication industry to locate
the customers at a particular time. The business data analysis techniques allow to find the
customers data and produce analysis reports helps to implement the best policies in a business
environment. In (VenkataRamana et al., 2019) application of customer leaving in the telecom
industry is tested for the prediction of customer behaviour using data mining techniques. In this
research, a large number of customer’s data from the telecom industry is used for customer churn
prediction. The proposed method (hybrid genetic algorithm with particle swarm optimization,
HGAPSO) is suitable for the telecom industry for finding the opinion of people visiting the
telecom outlets and their expectations from the company to obtain good services. The data sets
obtained from the industry are used by the researchers effectively to process the data and predict
customer behaviour with respect to various aspects and their opinions.

Impact of Big Data over Telecom Industry

Data has grown tremendously in recent years, leading researchers to concentrate on a popular
concept known as Big Data. Information technology, telecommunications, theoretical
computing, mathematics, data mining, and data warehousing are all examples of Big Data. Data
science is commonly associated with Big Data since it employs techniques for reducing large
amounts of data. Currently, more than 3.2 billion people throughout the world have access to the
internet, with 46 per cent of those using smartphones. Cell phones are used by about 5.5 billion
people. Because technology is rapidly transitioning from basic cell phones to smartphones, the
percentage of people who use the internet is also increasing. According to estimates, nearly 7
billion people will be connected to the internet by 2020, with 52 per cent utilising their
smartphones to do so. By 2050, that proportion will have risen to 95% of the global population.
Every internet-connected device creates data. Because the majority of devices generate data via
apps like Instagram, WhatsApp, Apple, Google, Google+, Twitter, Flickr, and others, this
massive volume of data is becoming a severe challenge to the telecom industry. The amount of
Big Data generated by the telecom industry is compared in this article. We utilise forecasting
methods based on the collected data to predict the quantity of Big Data that will be generated in
the near future and to identify problems that the telecom industry will face as a result of that
massive amount of Big Data.

Use of Big Data in the Telecom Industry

The purpose of the research was to look into big data management in three telecommunications
businesses. The case of Big Data management was investigated utilising a qualitative research
strategy, with an open-ended interview as the major method. For the purpose of building a
corporate profile, websites and documents were analyzed. Data from various sources was aided
by observations. Companies have a large number of operations and significant stakes. Cloudera
Data Hub (CDH) and SaaS were used to manage large amounts of data. These companies
implemented different arrangements for data security. Big data systems were used by three
companies for a variety of functions and applications. These businesses required qualified
personnel for data management, security, and other applications. It was a one-of-a-kind study
undertaken in this environment. These insights and recommendations may be useful to
businesses in a variety of industries. This research could have a broader impact on regional
organisations. These are reliable findings for these companies when it comes to big data
management. These findings may be useful to other businesses as well.
REFRENCES

 https://pestleanalysis.com/pestle-analysis-of-the-telecommunication-industry/
 https://www.ibef.org/industry/indian-telecommunications-industry-analysis-presentation

 Kan Zheng, Zhe Yang, Kuan Zhang, Periklis Chatzimisios (2016) Big data-driven
optimization for mobile networks toward 5G. (2016, January 1). ResearchGate.
https://www.researchgate.net/publication/303302092_Big_data-
driven_optimization_for_mobile_networks_toward_5G

 Data Mining and Business Intelligence Applications in Telecommunication Industry

(2013, February) International Journal of Engineering and Advanced Technology, ISSN:
2249–8958, Volume-2, Issue-3 https://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.679.3160&rep=rep1&type=pdf 

Labhsetwar, S. R. (2020). Predictive analysis of customer churn in telecom industry using

supervised learning. ICTACT Journal on Soft Computing, 10(2), 2054-2060.
https://doi.org/10.21917/ijsc.2020.0291

 AttiliVenkataRamana, AnnaluriSreenivasaRao, E. Kesavulu Reddy (2019) Applications

of Business Intelligence and Decision Making for the Customer Behaviour Analysis in
Telecom Industry, International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-7 Issue-6S2

 Chen M, Mao S, Liu Y (2014). Big Data: A survey of mobile networks and applications
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 Rehman, S., & Al-Raqom, D. (2020). Using big data in telecommunication companies: A
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