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CSPs Catch Big Data Analytics Fever

Ray Le Maistre
4/2/2014
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We've been stressing the importance of analytics capabilities for communications service providers (CSPs) for some time, and we recently came to the conclusion that pretty much all the developments at this year's Mobile World Congress (and there were plenty of them) rely on the introduction of big data analytics capabilities. (See MWC14: Analytics Holds the Key and The Big Data Challenge: 10 Tips for Telcos.)

Just before that industry gathering, I went to a much smaller meeting of industry folks in Amsterdam, where I found that CSPs are, in fact, making notable progress in big data analytics in terms of strategies and implementations. (See Telcos Warm to Big Data.)

Now Heavy Reading has some numbers that add further weight to the growing importance of this trend. An expected compound annual growth rate of 26% between 2013 and 2020 and a market valued at almost $10 billion in six years or so are significant.

Even more interesting are the reasons that service providers give for their planned investments and the barriers to the implementation of successful big data analytics strategies.

Check out senior analyst Ari Banerjee's column here. It makes for an interesting read.

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— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

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DHagar
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DHagar,
User Rank: Light Sabre
4/3/2014 | 5:29:19 PM
CSPs Catch Big Data Analytics Fever
@Sarah, Cisco and TWC must have been listening to our "online" discussion.   Time Warner Cable has just announced a partnership with Cisco to manage the communications and networking for customers.  Maybe they will be one of the telecomm leaders?

 
DHagar
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DHagar,
User Rank: Light Sabre
4/3/2014 | 4:36:23 PM
CSPs Catch Big Data Analytics Fever
@Sarah, yes, but as Ray points out it is just catching on with CSP's. 

The companies I had in mind include the "distinctive" service opportunities being provided by Amazon, Starbucks, and loyalty programs. 

With telecomm's, I had in mind the vision and capabilities that Cisco is building and companies are using in cable, streaming, and the development of unique pricing packages of value to the customer.  Also, I had in mind the development of the increasing apps for expanded customer experience.  (Note:  These are the spotty beginnings but I believe will follow the leading service providers.)

 
SarahReedy
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SarahReedy,
User Rank: Blogger
4/3/2014 | 3:40:46 PM
Re: CSPs Catch Big Data Analytics Fever
Who are the leading companies you refer to today? Any from the telecom world?
DHagar
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DHagar,
User Rank: Light Sabre
4/3/2014 | 3:28:20 PM
CSPs Catch Big Data Analytics Fever
@Sarah, you raise good points in that we have developed a lot of interest in the use of analytics for market, social media, etc., but there are leading companies that are "customizing" the customer experience and making the services, packages, and even pricing a better experience, coming from their intelligence (analytics).

I think leading companies will learn how to move up the chain and use anaytics more effectively, including predictive analytics.  My thought is that the companies who make more money from better services and products, using analytics, will set the stage for wider use.

 
SarahReedy
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SarahReedy,
User Rank: Blogger
4/3/2014 | 12:51:01 PM
Re: CSPs Catch Big Data Analytics Fever
I think we're already seeing a mix of opreators using analytics for internal and external purposes and working with multiple vendors depending on the division. That said, my impression is that using big-data analytics externally, as a way to generate revenues with brands, is taking priority over using it to actually improve the customer experience.
DHagar
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DHagar,
User Rank: Light Sabre
4/2/2014 | 5:26:58 PM
CSPs Catch Big Data Analytics Fever
Ray, I think this is great news for the industry and the CSPs.  They are awakening to the opportunities of technology at large in the shift to the value of technology, being the effective use of the data.  This opens the door to new frontiers and represents more opportunities and new services.

I wonder if they will evolve with vertical applications or consider linking their networks with data analytics specialists to create an optimal ecosystem?

 

 
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