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All around the world, communications service providers are facing growing challenges with declining revenues and shrinking margins from traditional telecom services. However, the good news is that as the demand for bandwidth continues to grow, CSPs are presented with a wealth of new opportunities to realize new sources of revenue.
In fact, broadband network data traffic offers a treasure chest of revenue opportunity that can be even more valuable than traditional voice and SMS records. Unfortunately, many CSPs do not know how to properly leverage this data. They know they need to take action to shake up the status quo, but the real challenge they face is deciding what actions to take.
In order to remain competitive and profitable, CSPs must move beyond traditional network planning techniques and basic “utility” pricing models. They must provide the best possible customer experience at the lowest cost. In order to achieve this, they must learn how to properly leverage network and subscriber data in order to pursue new revenue opportunities. They must learn how to turn insight into creative marketing packages.
Information is king
Operators do not suffer from lack of data. Rather, the real challenge lies in transforming their big data into meaningful business intelligence that can be acted upon when the time is ripe.
A proactive approach to analytics can help CSPs overcome this challenge.
The goal of analytics is to provide actionable information to allow CSPs to better understand network traffic patterns and manage traffic more efficiently. Similarly, analytics enable CSPs to gain a better understanding of subscriber behavior with the purpose of allowing them to create differentiated service plans that are tailored to customer needs.
There are a lot of unknowns. For example, we know there will be a next “big thing,” but we don’t know what it will be. We know that video traffic will dominate, but we don’t know what kind of video. With so many important questions to answer, it is crucial for CSPs to identify and understand both network and subscriber trends and needs. This will enable them to make key decisions regarding testing new service options, and fixing or dropping plans that are not effective. It will also allow them to plan more effectively for new applications and traffic types.
Before we explore some of the key considerations for analytics, it is crucial to note that analytics impacts virtually all business departments, including; networks, marketing, finance, operations and customer service. Therefore, all information sources must be used and acted upon across departments. Only a truly holistic approach will enable operators to accurately segment the market and increase revenues from their subscribers.
Considerations
The success of any analytics program will rely on the accuracy, granularity and accessibility of the data gathered from the network. Leveraging DPI technology within their own networks, operators can gain crucial insight into subscriber behavior and usage. Below are several important considerations for implementing an effective analytics platform.
–Comprehensive: The analytics platform must be able to collect and filter data from many sources (billing, provisioning and CRM platforms) and be able to export data in a wide range of outputs and formats. The more information available, the smarter the CSP can be about analyzing and implementing new marketing offers.
–Highly granular: It must deliver data on a per-subscriber, per-application basis. More detail available on application use and subscriber behavior will enable greater precision for planning. The system should also be able to accurately identify as much over-the-top applications and content as possible, to allow the operator to stay on top of the latest trends.
–Real-time: In order to be truly relevant and actionable, the analytics platform must report information on current network conditions and locations in real-time, or as close to real time whenever possible.
–Clear chain linking information to action: Input data must be formatted, filtered and presented as output whenever and wherever it is needed. It must also be delivered in a format that may be used by different departments across the organization, including non-technical employees.
–Ability to aggregate and anonymize data: This is necessary in order to increase the potential market reach while at the same time protect privacy, for either internal or external use.
–Customized reporting: Pre-configured reports are great, but a truly effective solution must also offer customized reporting based on ad-hoc questions. This will allow the operator to answer specific questions, explore possible courses of action and even uncover unforeseen threats and opportunities.
–Automation of action: Whenever feasible, automation of options and choices will allow subscribers to select new features and services. This is essentially putting all of your effort into practice and a critical step towards realizing new revenue.
–Open and modular: It is crucial for the system to be able to scale handle increasing amounts of volume. Open characteristics are also crucial to allow the package to be extended with third-party add-ons and operate with software from different vendors.
Analytics is one of the most important tools for today’s operators, and I encourage all CSPs to consider how analytics can impact their own operations. As CSPs continue to embrace the cloud and roll out new LTE networks, the role of analytics will only continue to grow. Operators that take a proactive approach to analyzing the state of their networks and exploring their subscriber behavior will succeed in transforming their data into personalized services and will reap the rewards of a profitable future.
Andrei Elefant is the VP of Product Management and Marketing for Allot Communications. Prior to Allot, Elefant worked in the product management of Airborne Systems. This included responsibility for products from the characterization of requirements and development stages through new system introduction and maintenance. Elefant has a B.Sc. cum laude in Mechanical Engineering and an MBA in Marketing and Business Development.
