Big Data and Analytics Telco Strategies, Investments and Use Cases

MarketLine Case Study
Big data and

analytics
Telco strategies, investments and
use cases
Reference Code: ML00022-024
Publication Date: June 2016
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
Big Data and analytics: Telco strategies, investments and use cases ML00022-024/Published 06/2016
© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

OVERVIEW
Catalyst
'Big Data' has become a buzz phrase for companies in all sectors in recent years, and telcos are at the forefront of trying
to utilize data in a bid to achieve their stated business objectives. This report examines the current situation with regard
to big data analytics among communication service providers, for which use cases these organizations are harnessing
the technology and to what extent these efforts are proving successful.
Summary
 Telecoms operators are embracing big data analytics (BDA) with enthusiasm, but while many report that BDA is
fully operational and already contributing benefit to their organizations others are still at the exploratory stage of
addressing its potential.
 The key challenges operators face are a lack of BDA skills, organizational issues and siloed data. It is clear that
to be successful there needs to be a cultural change within organizations, with leadership coming from the top.
However, operators are taking different approaches to their implementations, some opting for a centralized
approach, others for a decentralized model, while a minority has set up a separate business unit.
 A range of use cases for BDA exist in the telecoms environment including network optimization, fraud detection,
customer experience management, churn reduction and data monetization. Customer satisfaction / churn
reduction is the most important driver of BDA implementations and linked to this is the ability to personalize
services for individual customers which is the next most important rationale.
 Operators are striving for increased revenue as well as cost reductions and in many use cases both can happen
in parallel. An operator that uses BDA to prioritize the roll-out of a 4G network to areas of highest demand can
do so more cost effectively while optimizing revenue growth potential, for example. Data monetization based on
the sale of data to third-parties is more complicated in some regions of the world because of data privacy
legislation and for this reason operators in the US and Asia seem to be further ahead as those in, say, Europe
and Australia.
 Set against the backdrop of an unprecedented challenge facing operators to differentiate themselves from the
competition it is clear that those operators who make BDA work for them can put themselves at a significant
advantage over their competitors. While operators are very reluctant to quantify to what extent they have
benefitted already in terms of revenue generated or costs reduced it seems clear that potential benefit is huge.
But of course all operators cannot benefit in equal measure. The extent to which BDA implementations are
successful is set to be a significant factor in determining who the winners are and who will lose out.

TABLE OF CONTENTS
Overview ............................................................................................................................................................................. 2
Catalyst............................................................................................................................................................................ 2
Summary ......................................................................................................................................................................... 2
Big data increasingly important in competitive marketplace ................................................................................................ 6
BDA to play increasingly important role in helping service providers address challenges of today’s marketplace .......... 6
Global telecom services increasingly commoditized and competitive, customers value experiences more .................... 6
Telecoms operators typically work with top vendors and service providers when implementing BDA ............................. 7
Regulation and privacy legislation are key issues, particularly when selling data externally ........................................... 8
Churn reduction driving BDA, investment & RESULTS MIXED as challenges remain ...................................................... 10
Survey of participants in BDA in the telecoms sector shows different stages of implementation ................................... 10
A number of factors drive telecoms operators to implement BDA but customer satisfaction/churn reduction most
important........................................................................................................................................................................ 10
Level of investment in BDA and operational structure vary ........................................................................................... 11
There are a number of perceived challenges to BDA implementation ........................................................................... 12
Customer satisfaction improvements the key perceived benefit for operators when implementing BDA ....................... 13
Reasonable levels of satisfaction achieved across a range of measures ...................................................................... 14
BDA operator/suppliers survey: Key insights ................................................................................................................. 14
BDA operator/suppliers survey: Challenges to BDA implementation ............................................................................. 15
Ways to address BDA implementation challenges ........................................................................................................ 15
Telco BDA strategies, investments & example use cases ................................................................................................ 16
AT&T has a long tradition of groundbreaking research and development and BDA now plays a central role in this effort
...................................................................................................................................................................................... 16
Service improvements have been achieved ............................................................................................................... 16
AT&T analyzing traffic patterns in bid to enhance network ........................................................................................ 16
Orange is leading the way in harnessing BDA to monetize data, impressive given European data privacy laws .......... 16
Transport.................................................................................................................................................................... 16
Tourism ...................................................................................................................................................................... 17
Trade & distribution .................................................................................................................................................... 17
Flux Vision counts more than 70 businesses and communities as customers .............................................................. 17
SingTel's BDA initiatives focus on improving customer insights in a retail setting ......................................................... 17
SingTel has boosted its efforts via partnerships ............................................................................................................ 17
SingTel has earmarked significant funds to invest in analytics-driven initiatives involving advertising, mobile video,
cyber security and smart cities ...................................................................................................................................... 18
Through M&A and partnerships Telefónica has demonstrated a commitment to embrace BDA ................................... 18

Mergers & Acquisitions .............................................................................................................................................. 18
Telefonica investing significant funds ......................................................................................................................... 18
BDA use cases in the telecoms environment ................................................................................................................ 18
Fraud detection less popular use case for BDA implementation than others, but an important application nonetheless
...................................................................................................................................................................................... 19
Using analytics to improve customer satisfaction can result in additional revenue opportunities .................................. 19
Some BDA providers harnessing technology to provide services their customers can use to service their own ........... 20
Conclusions....................................................................................................................................................................... 21
BDA will play a major role in helping operators differentiate themselves ....................................................................... 21
Successful implementations of BDA requires operators to change their traditional internal culture .............................. 21
A vast array of companies are involved in the BDA market ........................................................................................... 21
Customer satisfaction / churn reduction is the most important driver of BDA implementations ..................................... 21
Cultural change needed................................................................................................................................................. 21
Operators need to recognize that BDA can play a role in helping them survive while others fail ................................... 21
Focus on data privacy and security is increasingly crucial............................................................................................. 22
Appendix ........................................................................................................................................................................... 23
Sources ......................................................................................................................................................................... 23
Further Reading ............................................................................................................................................................. 23
Ask the analyst .............................................................................................................................................................. 24
About MarketLine .......................................................................................................................................................... 24
Disclaimer ...................................................................................................................................................................... 24

LIST OF FIGURES
Figure 1: Mobile and Internet Penetration, 2015-2020 (%).................................................................................................. 7
Figure 2: Global ARPS 2015-2020 ($) ................................................................................................................................ 7
Figure 3: Players in BDA in telecoms .................................................................................................................................. 8
Figure 4: Considerations in terms of data protection and security ....................................................................................... 9
Figure 5: Status of big data analytics implementation ....................................................................................................... 10
Figure 6: Drivers of big data/analytics implementation ...................................................................................................... 11
Figure 7: Extent of financial investment in BDA ................................................................................................................ 11
Figure 8: BDA structure within organizations .................................................................................................................... 12
Figure 9: Challenges to BDA implementation.................................................................................................................... 13
Figure 10: Perceived benefits of BDA implementation ...................................................................................................... 13
Figure 11: Extent of delivery of benefits ............................................................................................................................ 14
Figure 12: BDA in telco sector schematic.......................................................................................................................... 19

BIG DATA INCREASINGLY IMPORTANT IN
COMPETITIVE MARKETPLACE
Telecom markets are growing increasingly competitive with global mobile subscription penetration hitting 105% in 2015
and they are becoming increasingly competitive thanks to market saturation and declining differences between the
services offered by different players. As telecom services trend toward commoditization, companies are looking to
employ big data analytics (BDA) to give them an advantage. Loyalty programs and social media strategies are just two
examples of BDA uses that have been seen thus far. When using BDA however, telcos must be aware of data protection
laws, especially if they are looking to monetize it by selling it.
BDA to play increasingly important role in helping service

providers address challenges of today’s marketplace
As the volume of data being created has grown exponentially in the past decade new technologies have emerged and
been embraced by organizations in all industry sectors for a number of use cases. The amount of data being generated
in the telecoms sector is colossal and there is a clear opportunity for communications service providers (CSPs) to
analyze this data themselves and also, subject to legal and regulatory conductions, to sell it to other organizations.
Potential benefits include greater efficiency, cost reduction and new revenue generation models. In the past few years
CSPs across the world have been working with technology providers and consulting firms on a range of BDA projects.
While there are strong indications that virtually every CSP has a BDA initiative, the dearth of case studies and insight into
the outcomes of these projects suggests that this it is still early days for BDA in the telecoms sector.
Global telecom services increasingly commoditized and

competitive, customers value experiences more
Telecom markets are growing increasingly competitive with global mobile subscription penetration growing from 105% in
2015 to 118% in 2020 while global internet user penetration rises from 40% to 50% over the same period. In addition,
telecom services will trend toward commoditization, with ARPS for mobile services shrinking from $10.12 in 2015 to
$9.52 in 2020 while residential broadband ARPS will decrease from $22.63 to $21.70 over the same period.
With saturated markets and the differences in services provided diminishing, consumers are valuing overall experience
more than the services themselves. Customer experiences are driving customer loyalty and churn; 51% of consumers in
IBM’s 2014 Global Telecommunications Consumer Survey, for example, stated that a positive experience would increase
loyalty to their provider and 90% said they would consider competing offers after a poor experience with their service
provider. Operators need to focus on winning customer loyalty through enhancing customer experience in the saturated
global telecom market. To accomplish this many operators around the globe have adopted loyalty programs and social
media strategies powered by big data analytics.

Figure 1: Mobile and Internet Penetration, 2015-2020 (%)
Mobile Subscriptions Internet Users
80% 74% 75%

70% 71% 72%
68%
70%
60%
48% 50%
50% 44% 46%
40% 42%
40%
30%
20%
10%
0%
2015 2016 2017 2018 2019 2020
SOURCE: Pyramid Research MARKETLINE
Figure 2: Global ARPS 2015-2020 ($)
Residential Broadband Mobile
25.0 22.63
21.78 21.96 22.04 21.90 21.70
20.0
15.0
10.12 9.65 9.62 9.64 9.57 9.52

10.0
5.0
0.0
2015 2016 2017 2018 2019 2020
Telecoms operators typically work with top vendors and

service providers when implementing BDA
The big data market comprises significant proportions of hardware, software and services and involves providers of
systems, storage and networking products and services, database software, analytics platforms and business
intelligence software as well as integrators and service providers. Cloud-based services play a major part too.
Many of the major players in these traditional ICT markets now have leadership positions in the BDA market. In addition
to these, the BDA ecosystem now includes hundreds of smaller companies. New start-ups are added every year.

The leading players in the market include the likes of: Accenture, Cisco, Hewlett-Packard Enterprise, IBM, Oracle, PWC,
SAP, SAS, and Teradata.
Figure 3: Players in BDA in telecoms
Regulation and privacy legislation are key issues, particularly

when selling data externally
Social media platforms such as Facebook have shown that people are increasingly prepared to make public what might
be considered “private” material. Indeed there is a view is that as technology develops and BDA takes place more and
more in real-time that consumers will become less privacy-conscious and that this will influence privacy legislation. To
what extent this is true is not certain. Currently, the extent to which data protection legislation impacts the potential use of
BDA by telecoms firms depends largely on which region of the world they are in.
The US and Asia have seen more data monetization initiatives with the telecoms sector because privacy legislation is
less restrictive than it is in Europe, for example. In Europe there are major differences between the attitude to privacy in
Germany and the Nordic area on the one hand and the UK and Southern European countries on the other.
China Unicom and Telefónica recently set up a joint venture that will extend Telefónica’s Smart Steps initiative to China
and will sell big data services to organizations involved in transportation, urban planning, tourism and other industries.
This is in contrast to Germany where Telefónica withdrew the Smart Steps program from the German market as early as
2012 because of pushback from the government. The likelihood is that Germany will exert considerable influence on any
effort by the EU to relax privacy legislation.
Operators cannot rely on legislation changing in their favor in order to facilitate the sale of consumer data, whether
“anonymous” or not. They must address the issue of privacy at every stage of the development of new service offerings.
Measures could include more secure storage of data, the use of encryption and an effort to obtain “opt-in” from
subscribers with regard to their data.

Figure 4: Considerations in terms of data protection and security
SOURCE: European Data Protection Supervisor MARKETLINE

CHURN REDUCTION DRIVING BDA, INVESTMENT &
RESULTS MIXED AS CHALLENGES REMAIN
A number of factors have driven telecoms operators to implement BDA. Given the competitive nature of the global
telecoms market it is not surprising that customer satisfaction/churn reduction is most important.
However, for most organizations the investment made in BDA has been relatively minor. Most significantly perhaps, just
10% claim to have made a large multi-year investment. There is also considerable variation in the way BDA is structured
within different organizations. Problems such a lack of BDA skills and siloed data are cited by telcos as a major challenge
and this has limited the success of any BDA initiatives so far carried out.
Survey of participants in BDA in the telecoms sector shows

different stages of implementation
MarketLine sister company Pyramid Research has conducted a survey of a range of participants in BDA in the telecoms
sector. The survey was conducted online and was completed by 30 respondent firms, many with operations across the
globe comprising fixed/mobile/pay-tv operators, IT services suppliers/consultancies, BDA consulting firms and “others”.
Operators were asked to answer based on their own experiences with other respondents answering based on their
experiences working on BDA implementations with operators.
The findings show that there are two main waves of adopters:
A “first wave” for whom their implementation is fully operational and contributing to their organization, and a “second
wave” that are currently exploring the possibilities. The sample is fairly evenly split between the two.
Figure 5: Status of big data analytics implementation
A number of factors drive telecoms operators to implement

BDA but customer satisfaction/churn reduction most important
Customer satisfaction / churn reduction is the most important driver of BDA implementations among the firms surveyed.
Linked to this is the ability to personalize services for individual customers, which is the next highest. These two could be
classed as the “external” drivers - i.e., driven by customer revenue concerns.
More surprisingly, the wish to provide BDA services to customers comes next in the list. Lower down the list but still rated
four or five by a majority of respondents in each case are network traffic optimization and fraud detection.

Figure 6: Drivers of big data/analytics implementation
Level of investment in BDA and operational structure vary

For most organizations the investment made in BDA was relatively minor. Most significantly perhaps, just 10% claim to
have made a large multi-year investment. There is considerable variation in the way BDA is structured within the
organizations surveyed with just 20% setting up a dedicated business unit.
Figure 7: Extent of financial investment in BDA
Minor investment (less

than 10% of annual IT
budget)
33%
40% Investment equating to a
considerable percentage
(10%-30% of annual IT
budget)
Very significant (30+% of
annual IT budget) multi-
10% year
17%
Don't know

Figure 8: BDA structure within organizations
6.7%
Decentralized
20% 33.3%
Centralized
Business Unit/Profit
Center
Other
40%
There are a number of perceived challenges to BDA

implementation
Three challenges came to the fore in the survey. The skills issue came out as the key challenge to operators when
conducting their BDA implementations. This is facing organizations in all industry sectors and demand for such skills is
high. However, given their high profile brands operators are in a good position to attract senior people so this is
something that can be fixed, given the right level of investment.
Organizational issues and the fact that telecoms operators tend to have very siloed data are more difficult to address.
One of the key findings of the broader research for this report is that these are still key challenges that operators must
overcome.
Looking further down the list it is evident that lack of budget or buy-in from senior management have presented much
less of a challenge. It further suggests that even with these in place there is not guarantee of success if the culture in the
organization cannot be changed to allow the right people, those with the right skills, to have access to the data they
need.

Figure 9: Challenges to BDA implementation
Lack of BDA skills 60%
Organizational issues 57%
Siloed data 53%
Other 23%
Lack of agreed budget 23%
Unfeasibly high expectations 17%

Lack of buy-in from senior
17%
management
0% 10% 20% 30% 40% 50% 60% 70%
Customer satisfaction improvements the key perceived benefit

for operators when implementing BDA
Customer satisfaction is the key benefit that respondents hope to achieve and BDA offers a number of ways to improve
it. Proactive customer care is an area that is being increasingly used to reduce call-center costs and has proven very
effective in some cases. The desire for data monetization is seen in the next two perceived benefits, which are clearly
linked. The need for additional revenue is paramount for telecoms operators and will be more pressing in the coming
years. Just as we saw that network optimization was not seen as important a driver of BDA as customer satisfaction,
similarly cost savings is not perceived as being a benefit to that same extent as additional revenue.
Figure 10: Perceived benefits of BDA implementation
Improved customer satisfaction 70%
The ability to introduce new business

67%
models
Additional revenue 63%
Reduced customer churn 50%
Cost savings 47%
Other 17%
0% 10% 20% 30% 40% 50% 60% 70% 80%

Reasonable levels of satisfaction achieved across a range of
measures
Levels of satisfaction that the expected benefits of BDA deployment have been achieved by organizations is good with
between 40-50% of respondents either “satisfied” or “very satisfied” on most measures. Given that BDA implementations
have considerable set-up costs associated it is perhaps to be expected that in the case of” cost savings” satisfaction is
lower.
This is particularly good considering that many organizations are still at the exploratory stage of their BDA deployments.
The fact that a large proportion is “neither dissatisfied nor satisfied” reflects this. This strongly suggests that for many it is
too early in their deployment to make a robust calculation.
Figure 11: Extent of delivery of benefits
BDA operator/suppliers survey: Key insights

 Two “waves” of adopters exist. The findings suggest there are two waves of adopters – a “first wave” whose
BDA implementations are already fully operational and contributing in a beneficial way to their organizations and
a “second wave” who are currently exploring the technology.
 Improved customer satisfaction is key driver. Customer satisfaction / churn reduction is the most important
driver of BDA implementations among the firms surveyed. The ability to personalize services for individual
customers is the next highest and also linked to revenue generation. Of importance too as a driver but less so is
network optimization, which is focused on cost savings.
 Scale of investment is small for the majority. In the case of 40% of organizations the level of investment did not
exceed 10% of IT’s budget. However, a third of respondents did not know the size of the investment. Very few
made a significant, multiyear commitment to BDA investment.
 No pattern to how BDA is structured within organizations. A total of 40% opted for a centralized approach when
setting up the BDA function in their organization. A third opted for a decentralized approach while just 20% set
up a separate business unit.
 Customer satisfaction is a key expected benefit. Just as it was the key driver of BDA for the majority it is also
the benefit that most respondent organizations expect to see from their deployments.
 Satisfaction levels are good. Between 40- 50% of respondents either “satisfied” or “very satisfied” on most
measures. This is particularly good considering that many organizations are still at the exploratory stage of their
BDA deployments.

BDA operator/suppliers survey: Challenges to BDA
implementation
Culture / organizational structure. The main challenge for telecoms operators nowadays who seek to implement BDA
within their organizations is to make important changes to the “culture” of the organization to allow this to work. These
changes may not be the same for every organization but there will be some common themes. Telecoms firms tend to be
large organizations with traditional hierarchical structures that present a challenge to any new initiative to be deployed
across the organization.
Siloed data ownership: Telecoms firms produce lots of data, more than most industries, but it also tends to have the data
distributed in different parts of the organization. Billing data sits in one area, network traffic data in another. This can be
accentuated by mergers and acquisitions resulting in multiple billing or CRM systems within the same organization.
Creating a structure where data “owners” buy in to the initiative is another hurdle.
Availability of skilled staff: Another challenge facing not just the telecoms industry but every industry intent on embracing
BDA is the global shortage of skilled personnel. There are, of course, consultancies and BDA service providers who can
provide certain skills during implementation but from the very start telecoms operators need to have their own people
capable of establishing an in-house analytics unit that builds, over time, an understanding of the very specific nature of its
data sources and how analytics can work best for the organization.
Technology: The technological requirements of conducting BDA are considerable and nowhere more so than in the
telecoms industry where the volumes of data for analysis are vast. Many of the analytics tools being used now have been
around for years and the thing that has facilitated the current popularity of BDA is the falling price of the hardware
required to run it all. Large volumes of data can be analyzed using commodity servers, albeit in large number. Despite
this, telecoms operators embarking on BDA initiatives need to be fully aware that there will be a steep learning curve for
the non-specialist staff in particular who become involved in the analytics activities within the organization.
Ways to address BDA implementation challenges

Appoint and empower a BDA leader. Operators have taken a variety of approaches to the implementation of a BDA
function. Some have made it a centralized function, others a decentralized one while some have set up a separate BDA
business unit. While there is no single approach that will be right for all organizations it is very important to appoint
someone to be the leader of the BDA deployment. This could be a chief data officer, but doesn’t have to be. What is
essential is that this person reports into the highest levels of the organization and that he or she is empowered to get the
buy-in of data owners across the organization’s silos and the budgetary authority to make the necessary investment for a
successful BDA implementation, including hiring the right staff.
Set achievable goals at the beginning. While the appointment of a BDA leader and evangelist is important, another key
factor in a successful implementation will be to demonstrate success at an early stage. With this is mind it is essential
that the organization does not fall into the trap of setting too many goals and trying to please everyone at once. Even with
senior level support for the initiative and a senior person leading the project it is important to be able to show positive
results in order to fully demonstrate the benefits of the process. Conversely, by taking the analytical process in small
steps it allows the team the flexibility to change direction if any early objective isn’t achieved.
Avoid falling foul of privacy issues. Operators need to always keep in mind the challenge of maintaining subscriber trust.
Key dangers are security breaches where private data becomes public or changes in legislation which makes things
more difficult. This is particularly true for operators who are selling data to third parties. Data needs to be anonymized
and there needs to be transparency with subscribers about how their data is being used. Some operators are doing this
successfully already and their example can be a guide to others.

TELCO BDA STRATEGIES, INVESTMENTS &
EXAMPLE USE CASES
A number of the world's telcos have started to implement BDA strategies, including AT&T, Orange, SingTel, and
Telefonica. Their aims in adopting such strategies vary from service improvements to improved security, and from fraud
detection to data monetization. The end goals in most cases are, however, reduced customer churn and customer wins.
Small percentage improvements can have large material impact and therefore, investment in such strategies is set to
become increasingly crucial.
AT&T has a long tradition of groundbreaking research and

development and BDA now plays a central role in this effort
AT&T Labs is the research & development division of AT&T. The Statistics Research Department, based in the US,
focuses on statistics, data mining and leveraging upon large amount of data sets generated/available at AT&T, covering
various aspects of statistical application and theory.
AT&T partnered with IBM to combine their analytic platforms, cloud and security technologies with a view to developing
solutions which support the Internet of Things initiatives, mainly for city administrations and mid-sized utilities companies.
Service improvements have been achieved

AT&T researchers created a tool to prioritize and escalate repair requests based on their impact on customer experience.
AT&T managed to improve customer experience by 59% (as of June 2014).
AT&T also leverages a tool it developed named Mercury, which uses analytics to help the telco understand network
health after planned maintenance. Another tool, MINT, helps in the identification of the location of the problem in the
network and the cause for it.
AT&T analyzing traffic patterns in bid to enhance network

AT&T has partnered with the University of California at Berkeley and the California Department of Transportation to use
aggregated data to help manage traffic patterns. This initial analysis of the collected data has been initially limited to the
California Bay Area. Two projects were involved:
- Connected Corridors project which leverages anonymous data to forecast traffic patterns in Los Angeles.
- Smart city project in northern California where BDA can help determine the best place to build ride share parking lots.
Orange is leading the way in harnessing BDA to monetize data,

impressive given European data privacy laws
Orange offers Flux Vision, its big data offering, which facilitates the conversion of information collected from its own
mobile network to generate statistical indicators. Flux Vision facilitates two broad categories of usage, namely real-time
usage (whereby indicators are sent to the users/customers in real-time) and historically recorded usage (whereby
information recorded at a particular place and instance of time is provided to the customer).
The key verticals leveraging the product are transport, tourism and trade and distribution.
Transport
Orange offers insights related to travel patterns and schedules, traffic by transport line, comparisons of traffic by mode of
transport between two cities, real-time information on traffic congestion points (section, station), delays etc. to the
transport agents. In addition, Orange Applications for Business (the digital services company of OBS) is helping
passenger transport companies improve passenger flow patterns on their networks.

Tourism
Orange offers detailed metrics on geographic area attendance rate for a given period and by population type (like
residents, tourists, sightseers) either in real-time (while people are in transit) or historical basis (for a single day).
The operator has a successful BDA monetization project ongoing with Chamonix Tourism where its Flux Vision product
allows its client to:
 Regularly receive statistical reports about the behavior of tourists using data on the mobile network
 Use this data to improve its tourism offer and make informed decisions
 Improve operational efficiency.
Trade & distribution

In October 2014, OBS enhanced the features of Flux Vision offerings by including features like metrics by age and
gender. This enables various entities like shopping centers with the capability to enhance their understanding by knowing
about the visitor profiles and surrounding areas.
Flux Vision counts more than 70 businesses and communities

as customers
Flux Vision is being used by more than 70 businesses and communities including nearly half of all French local tourism
agencies and committees.
Orange offered trial of Flux Vision to Bouches-du-Rhône Tourisme to analyze tourist activity. After the success of the
trial, National Network of Departmental Destinations (Rn2D) has signed an agreement with Orange Business Services to
deliver the Flux Vision solution to all ADTs (French Tourism Development Agencies) showing its potential for businesses
and local authority clients.
SingTel's BDA initiatives focus on improving customer

insights in a retail setting
SingTel is using BDA for network optimization and deployment. By linking three data sets - customer usage data, location
data and data on devices - the operator is able to prioritize where to deploy 4G networks. This facilitates greater harmony
between money invested and revenue generated.
In addition SingTel is using BDA in a customer care capacity. When a customer calls the care center the person taking
the call is provided with guidance on what the customer might be calling about based on BDA output.
SingTel launched a cloud-based video analytics solution for the retail industry. Singapore-based analytics solutions
provider KAI Square Pte Ltd (KAI) has developed a solution, Video-Analytics-as-a-Service (VAaaS), for SingTel. This is a
subscription service that leverages analytics to extract information from video images. With this technology, businesses
can gain insights into customers’ in-store behavior and configure their operations to better serve customer needs.
SingTel used its Cheer Aggregator data analytics platform to power Team Singapore for the Southeast Asian Games
2015. It aggregated and analyzed online sharing, conversations and sentiments to derive unique insights for the team.
The platform is powered by Amobee Brand Intelligence insights and tracks what people say on social media platforms
and the digital content they consume. It identifies and ranks the audience’s interests by trending associations, such as a
specific topic, athlete or sport.
SingTel has boosted its efforts via partnerships

SingTel’s data analytics subsidiary DataSpark and market research firm TNS have partnered to provide marketers with
greater understanding of shoppers in Singapore. The companies will use telecommunications data which is anonymized
and aggregated in near real-time from SingTel’s 4 million subscribers to establish motivations and attitudes to understand
shopper behavior.

This will provide insight into consumer mobility, decision influencers and purchase behavior in Singapore’s prime retail
hotspots and allow clients to optimize marketing efforts.
SingTel has earmarked significant funds to invest in analytics-

driven initiatives involving advertising, mobile video, cyber
security and smart cities
SingTel pledged in June 2014 an investment of S$2bn by 2017 in mobile advertising, mobile video and BDA. The
company further announced plans to invest $500 million over five years and hire 1,000 engineers as part of a three-
pronged strategy to build strengths in cyber security, smart cities and analytics. The telco will set up an AP Cyber
Security Competency Centre (ACE) and incubation labs. The center will work with international research and academic
partners on big-data security analytics and predictive security intelligence. SingTel also has plans to develop various
threat scenarios and solutions.
Through M&A and partnerships Telefónica has demonstrated a

commitment to embrace BDA
Telefónica has extended its partnership for Amdocs’ big data analytics solutions across Chile and Peru to consolidate
data access and facilitate fast decision-making. The solutions will enable the service provider to collect, store and gain
actionable business insights from its volumes of data. For Telefónica Chile and Telefónica Peru, Amdocs will implement
an operational data store that aggregates data from multiple operational sources including charging, collections, ordering,
customer management and enterprise product catalogue. A similar agreement with Amdocs will cover Argentina.
China Unicom and Telefónica have set up a joint venture, Smart Steps Digital Technology Company Limited, in China
that will sell big data services to organizations involved in transportation, urban planning, tourism and a range of other
industries. The JV is 55% owned by China Unicom with the rest held by Telefónica.
Mergers & Acquisitions

Telefónica acquired Spanish big data consultancy Synergic, which will continue to operate its portfolio of clients
independently with offices in Madrid and Barcelona. The company will form part of Telefónica's Global Business
Intelligence & Big Data department, helping to develop a number of advanced data analysis projects in Spain and the
rest of Europe and Latin America. With Synergic’s integration the service provider aims to enhance its analytical ability to
anticipate the needs of customers and offer them the personalized services being requested faster.
Telefonica investing significant funds

Telefónica has partnered with the American venture capital firm Coral Group to invest $200 million in the CSP’s start-up
incubation initiative, dubbed Open Future, which connects entrepreneurs with investors and public and private
organizations to guide research and development projects.
The investment is designed to enhance the return on Telefónica’s future capital investments (more than $7.5bn in 2014)
and help transform the company into a major market player in areas such as next-generation networks, big data and
machine learning, and the Internet of Things.
BDA use cases in the telecoms environment

Analysis and Visualization: Within this segment are a vast range of analytical and predictive tools to help the organization
understand and visualize data inputs and make decisions based on them. Though data volumes are generally vast the
aim of conducting such analytics in real-time is increasingly becoming a reality for operators.
Collection and Storage: A range of systems and storage, on-premises and in the cloud, facilitate the ingestion of large
volumes of data. The falling cost of access to this technology has played a major role in allowing the type of analytic
activity that is being done in the telecoms sector at present. Many of the other tools such as structured databases and
BDA software have been around for many years but are now more accessible.

Figure 12: BDA in telco sector schematic
Fraud detection less popular use case for BDA implementation

than others, but an important application nonetheless
Global telecoms fraud is a very significant problem. The Global Communications Fraud Association (CFCA) estimates it
amounted to $38 billion in 2015. Though down 18% from the 2013 figure it is nonetheless a significant issue and one
BDA is being used to combat. Operators are not only impacted financially but through diminished brand perception. As
the perpetrators of fraud become more sophisticated, fraud analysis and prevention become more complex. Ideally fraud
analysis needs to be done in real-time.
Vodafone has 450 million customers. Vast amounts of data are generated every day by mobile traffic. Argyle Data
implemented a solution for Vodafone to apply a big data stack to analyze mobile traffic data in real-time to detect
anomalies. Traffic data is streamed into a data lake at a high ingest rate and BDA technology capable of analysis of
hundreds of millions of times series is used. Fraudulent activity can be identified in three to four minutes, which would
have taken 24 hours previously. The ability to conduct this sort of analysis is facilitated by the lower price of (commodity)
hardware that it runs on as well as the BDA technology.
Using analytics to improve customer satisfaction can result in

additional revenue opportunities
MTS India operates in a highly competitive market servicing over 10 million mobile phone customers on the Indian sub-
continent. In some regions where it operates there are eight to ten mobile operators. Often the commitment is just three
months, so churn is high and customer retention is key.
MTS invested in a BDA solution which included HP Vertica with the aim of reducing customer churn and allowing the sale
of additional services to clients. The system gathers information from pre-pay users primarily with a view to offering close
to real-time offers based on their usage.
By rewarding customers with additional minutes or data it increased its conversion rates for purchases of additional
services from an industry-average of 3% to 6.5%. In addition the BDA solution has helped reduce overhead cost in the
business operations area. The marketing function can now develop their offerings without engaging with the IT function
for each one.
XO Communications, a US operator, began to focus on reducing churn rates among its customers. Its aim was to look at
a range of data on each customer and to use that insight to increase retention. Solution: Recognizing that churn is a very
complex thing XO began to use a mix of IBM products to identify and analyze a greater level of data about their
customers. This data ranges from dealings with a sales team to any customer service issues they might have had. The
insight is then used by both customer care and marketing departments to assign a “churn score”.

Through the use of analytics and with the co-operation of various functions within the company, including IT, marketing
and finance they were able to reduce churn by 50%. The company is now looking to integrate “propensity to purchase”
scores within their marketing campaigns. The use of analytics has also resulted in a more effective use of resources.
Some BDA providers harnessing technology to provide

services their customers can use to service their own
Sprint set up Pinsight Media+ in 2013 with the objective of data monetization and it operates as a separate business unit
/ company. It is essentially a mobile data company aiming to provide insights to understand what consumers are doing,
and provide media and advertising services to help clients target these customers and mobile commerce.
A key aim is to look at the ways in which the major social media firms like Google, Facebook and Twitter deal with
customers and replicate some of this for their clients. Though Sprint is the key investor, the company works with other
operators too.
Other clients, as well as the operators, are advertising agencies and brands. The company has plans to develop a major
revenue stream for its major investor in the coming years in a context where Sprint is under increasing competitive
pressure in its core telecoms markets.
Telefónica set up Dynamics Insights as a separate business unit with the aim of delivering revenue from BDA. It was one
of the first BDA initiatives by a telecoms operator that was focused beyond internal processes. An early product was
Smart Steps, which aimed to analyze crowd behavior and was targeted at the retail sectors offering to assist them to
localize offering for existing stores and identify locations for new ones.
This migrated to analysis of consumer “journey” data which was then targeted at rail operators in the UK. Similarly, data
on car journeys was targeted at transport consultancies that plan infrastructure / passenger services initiatives for the
public sector. The value of this type of data has now been fully established. The business unit continues to look for new
markets for data monetization. Since this is very different from the normal operation of a telco the key to success has
been to focus on the task, bring in the necessary skills and remain flexible. From the beginning data protection has also
been a key focus with data anonymized and aggregated at all times

CONCLUSIONS
BDA will play a major role in helping operators differentiate
themselves
The beginning of this report described the stark reality of falling revenues (ARPS) and diminished variations between
operators and the services they offer. The fact is that some operators won’t be around in five or ten years. BDA offers an
opportunity for some to forge ahead, gain great subscriber insight, then using that information to increase revenue,
customer retention and cut costs along the way. There seems certain to be a BDA component to the success stories of
the operators that survive the difficult years to come.
Successful implementations of BDA requires operators to

change their traditional internal culture
The key to success for operators with their BDA implementations is to take the necessary steps to change the internal
culture of the organization. This means setting up the correct leadership structure, breaking down barriers to data access
and creating a collaborative environment where people from different parts of the organization can work together for
mutual benefit. With the right structure in place there are no limits to the potential to harness BDA with the telecoms
environment.
A vast array of companies are involved in the BDA market

These comprise many of the traditional ICT market leaders as well are hundreds of new suppliers of specialist BDA
hardware, software and services to the marketplace. However, despite this, most solutions have links to common
databases, use Hadoop open source software and run on commodity hardware. The likelihood of investing in the “wrong”
technology is lower than it would be with other technology investments. Technology is not a significant barrier to BDA
progress in general.
There are two “waves” of adopters of BDA currently, one group whose BDA implementations are up and running and
already contributing to the organization and another group who are at a more exploratory stage of development. Access
to BDA skills is considered by operators as a key challenge in addition to the internal cultural challenge cited above.
Customer satisfaction / churn reduction is the most important

driver of BDA implementations
Linked to this is the ability to personalize services for individual customers, which is the next highest. These two could be
classed as the “external” drivers - i.e., driven by customer revenue concerns.
Cultural change needed

Operators must recognize the extent to which they will need to change their internal culture in order to make their
engagement with BDA a success. Leadership must come from the very top of the organization. Only this will ensure that
the level of collaboration that is required will take place. Data sharing must be facilitated. While this culture change is
primarily an internal exercise, it can beneficial for operators who are looking for help from external suppliers to opt for
partners who can assist with this effort, in other words those that can help address the internal challenges and not just
the technological ones. It is important to recognize that this is not primarily a technological investment but a major
organizational restructuring.
Operators need to recognize that BDA can play a role in

helping them survive while others fail
A large proportion of operators claim that BDA is already contributing benefits to their organizations.

While most operators are very reluctant to quantify this in terms of revenue generated or costs reduced it seems clear
that those operators who can harness BDA successfully can benefit considerably by way of reduced customer churn,
additional sales through personalized customer offerings and reduced costs. Set against the backdrop of unprecedented
challenges for operators to differentiate themselves from the competition it is clear that those operators who make BDA
work for them will have a significant advantage over their competitors. Those leading the way in these organizations
need to emphasize this risk/reward potential when they seek to gain commitment from stakeholders.
Focus on data privacy and security is increasingly crucial

While BDA can help provide competitive advantages for operators any issue with regard to data privacy could jeopardize
this. This is particularly true when operators are involved in selling data to third parties. The issue of data privacy is
greater in some parts of the world than others and it is likely that as time goes on consumers will be more accepting of
their personal data being used in new ways that they accepts as beneficial. In the meantime, operators should be careful
not to be associated with a breach of data privacy. Furthermore, it is impossible to predict what impact changes in
legislation may have on the privacy environment. For this reason too, data privacy should be at the core of the BDA
strategies of all operators.

APPENDIX
Sources
Pyramid Research BDA operator / suppliers survey
Further Reading
From token loyalty to meaningful relationships: How loyalty programs and Big Data Analytics are facilitating CRM in the
retail sector – MarketLine Case Study
Agriculture and Big Data: Will Big Data technologies be the next big leap for industrialized agriculture – MarketLine Case
Study
Global Telecommunications Services – MarketLine Industry Profile

Ask the analyst
We hope that the data and analysis in this brief will help you make informed and imaginative business decisions. If you
have any questions or further requirements, MarketLine's research team may be able to help you. The MarketLine
Research team can be contacted at ReachUs@MarketLine.com.
About MarketLine
At MarketLine, we deliver accurate, up-to-date insights on over 30,000 companies, 300 industries, and 215 countries, as
well as the latest news and financial deal information from within your market and across the globe.
Established in 1997 when the Internet was in its infancy, we recognized the need for a convenient and reliable data
service to help our clients understand local and global markets and the companies operating within them.
In today’s information-rich world, sifting fact from fiction to pick out what’s relevant and what’s up to date has become the
new ‘holy grail’ in business information provision.
Our 170 dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, MarketLine.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that
the findings, conclusions and recommendations that MarketLine delivers will be based on information gathered in good
faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such
MarketLine can accept no liability whatever for actions taken based on any information that may subsequently prove to
be incorrect.

MarketLine | John Carpenter House, John Carpenter Street |
London, United Kingdom, EC4Y 0AN
T: +44(0)203 377 3042, F: +44 (0) 870 134 4371
E: REACHUS@MARKETLINE.COM
WWW.MARKETLINE.COM

Big Data and Analytics Telco Strategies, Investments and Use Cases

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Big Data and Analytics Telco Strategies, Investments and Use Cases

Uploaded by

Copyright:

Available Formats

MarketLine Case Study

Big data and

Publication Date: June 2016

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Big data increasingly important in competitive marketplace ................................................................................................ 6

Level of investment in BDA and operational structure vary ........................................................................................... 11

There are a number of perceived challenges to BDA implementation ........................................................................... 12

Reasonable levels of satisfaction achieved across a range of measures ...................................................................... 14

BDA operator/suppliers survey: Key insights ................................................................................................................. 14

BDA operator/suppliers survey: Challenges to BDA implementation ............................................................................. 15

Ways to address BDA implementation challenges ........................................................................................................ 15

Telco BDA strategies, investments & example use cases ................................................................................................ 16

Service improvements have been achieved ............................................................................................................... 16

AT&T analyzing traffic patterns in bid to enhance network ........................................................................................ 16

Trade & distribution .................................................................................................................................................... 17

SingTel has boosted its efforts via partnerships ............................................................................................................ 17

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

Telefonica investing significant funds ......................................................................................................................... 18

BDA use cases in the telecoms environment ................................................................................................................ 18

A vast array of companies are involved in the BDA market ........................................................................................... 21

Cultural change needed................................................................................................................................................. 21

Focus on data privacy and security is increasingly crucial............................................................................................. 22

Further Reading ............................................................................................................................................................. 23

Ask the analyst .............................................................................................................................................................. 24

About MarketLine .......................................................................................................................................................... 24

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Figure 2: Global ARPS 2015-2020 ($) ................................................................................................................................ 7

Figure 3: Players in BDA in telecoms .................................................................................................................................. 8

Figure 4: Considerations in terms of data protection and security ....................................................................................... 9

Figure 5: Status of big data analytics implementation ....................................................................................................... 10

Figure 6: Drivers of big data/analytics implementation ...................................................................................................... 11

Figure 7: Extent of financial investment in BDA ................................................................................................................ 11

Figure 8: BDA structure within organizations .................................................................................................................... 12

Figure 9: Challenges to BDA implementation.................................................................................................................... 13

Figure 10: Perceived benefits of BDA implementation ...................................................................................................... 13

Figure 11: Extent of delivery of benefits ............................................................................................................................ 14

Figure 12: BDA in telco sector schematic.......................................................................................................................... 19

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 5

BDA to play increasingly important role in helping service

Global telecom services increasingly commoditized and

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 6

Mobile Subscriptions Internet Users

80% 74% 75%

SOURCE: Pyramid Research MARKETLINE

Figure 2: Global ARPS 2015-2020 ($)

Residential Broadband Mobile

10.12 9.65 9.62 9.64 9.57 9.52

SOURCE: Pyramid Research MARKETLINE

Telecoms operators typically work with top vendors and

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 7

Figure 3: Players in BDA in telecoms

SOURCE: Pyramid Research MARKETLINE

Regulation and privacy legislation are key issues, particularly

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 8

SOURCE: European Data Protection Supervisor MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 9

Survey of participants in BDA in the telecoms sector shows

Figure 5: Status of big data analytics implementation

SOURCE: Pyramid Research MARKETLINE

A number of factors drive telecoms operators to implement

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 10