Light Reading

The Big Data Challenge: 10 Tips for Telcos

Ray Le Maistre

AMSTERDAM – Communication Service Providers (CSPs) need a self-imposed shift in corporate culture in order to capitalize on the massive amounts of potentially useful data they have at their fingertips.

That's one of the conclusions from the first morning's debate at the Big Data Analytics Summit here in the Dutch capital.

The TeleManagement Forum (TM Forum), the event's organizer, attracted a number of CSP executives from the likes of Belgacom SA, Cricket Communications Inc. and Orange Polska (with many more to come) to talk about why and how they are approaching the so-called Big Data challenge.

The overall theory is that by extracting useful information from the information that is currently hidden and untapped in many systems and networks, CSPs can provide a better customer experience, develop more targeted and intelligent marketing programs and develop new business models that will ultimately enable them to maximize their top and bottom lines.

Here are my takeaways from the conference sessions so far:

  • The ability to derive value from the information generated by networks, devices and subscribers is reliant on a dramatic, almost counter-cultural shift (for telcos) in corporate strategy and internal processes. Telcos "need to be able to prioritize and make decisions -- neither of these happen today as [telcos] don't have the right structure to do this," said Peter Crayfourd, a former senior customer experience executive at France Télécom – Orange, who is now an independent consultant.

    "The human aspect is as important, if not more important, than the technology," stated Belgacom Business Intelligence Manager Wim Castuer at the end of his presentation. He outlined how the Belgian incumbent reorganized and brought together its IT and business/marketing teams in an effort to figure out how to get from "data spaghetti to [a] structured data model."

  • Telcos have been talking about these ideas for years (without the Big Data tag) but have done little about it: Now, with margins squeezed, profitable legacy services in decline and competitive pressures coming from Web services players, there is evidence of action. CSPs need to make sure they don't get left behind: It's time to jump on the bandwagon.

  • The CSPs need help from the industry -- there's only so much they can do themselves. "We need a lot of help from the business intelligence experts," said David Muragi, head of multiscreen operations at Portugal Telecom SGPS SA. But total reliance on Service Provider Information Technology (SPIT) systems and third party suppliers isn't recommended -- there needs to be some bespoke in-house action: "We need to identify the right people internally and then build on top [of the systems implemented]," he added.

  • Big Data strategies need buy-in from the very top of a CSP and then all the way down to the customer-facing staff if they are to have any impact.

  • New metrics are required, said a number of speakers. Traditional KPIs (key performance indicators) are practically meaningless, noted Crayfourd and other speakers. "I can't think of a worse measurement of a customer's value than ARPU [average revenue per user]," noted Jim Hayden, executive director of business intelligence at Teoco Corp. (See Teoco to Buy TTI Telecom.)

  • Big Data projects can't be forced into a fixed timescale: Once started, it will never stop. "You are never done," said Cricket's director of OSS, Stefan Spaar. "It's a journey, not a one-off investment," added Belgacom's Castuer.

  • Big Data projects are not big bang projects: They need to be implemented in an incremental fashion and CSPs should experiment as they figure out how the data from their multiple systems and silos can be organized in a more structured fashion and then mined for useful data. "Experiment by using [an] analytics sandbox," suggested Teoco's Hayden.

  • In terms of the technology underpinning CSP business intelligence/data warehousing/analytics strategies, some of the key IT suppliers are Teradata, The Apache Software Foundation (Hadoop), IBM Corp., Oracle Corp., EMC Corp. and SAS Institute Inc. That Teradata's business intelligence IT systems appear to be embedded in just about every CSP's back office looks like good news for emerging telco analytics specialist Guavus Inc., which is also here in Amsterdam and which has just announced a partnership with Teradata. (See Guavus Teams With Teradata.)

  • But CSPs should try not to be too hung up on the technology, noted Teoco's Hayden, and should not get obsessed either by the return on investment (ROI) on implementing a data analytics strategy (where the costs are a mix of operating and capital expenditures). "It's very hard to quantify how valuable [in financial terms] it is to know more about your customers. If you try to quantify it [then you'll] probably be wasting your time," said Belgacom's Castuer.

  • But there are ways to develop new revenue streams from Big Data operations: Cricket's Spaar explained that his company is currently studying how the business intelligence data it generates can be used for mobile marketing applications.

    And to finish off, here's the quote of the day:

    "Big Data sounds sexy but it's actually very dirty" -- Tapan Bhatt, senior director of industry solutions, Splunk Inc.

    — Ray Le Maistre, International Managing Editor, Light Reading

    (4)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    sqiar bi
    sqiar bi,
    User Rank: Light Beer
    1/8/2014 | 12:33:52 PM
    Tableau Reporting
       Tableau Reporting 
    SQIAR ( is a leading Business Intelligence company and provides Tableau Software consultancy across United Kingdom and USA.
    Darryl DeLong
    Darryl DeLong,
    User Rank: Light Beer
    5/31/2013 | 7:33:38 PM
    re: The Big Data Challenge: 10 Tips for Telcos
    I'd like to suggest another great BI/Data Analytics company called Lavastorm Analytics -
    Scott Sobers
    Scott Sobers,
    User Rank: Light Beer
    2/4/2013 | 9:16:09 PM
    re: The Big Data Challenge: 10 Tips for Telcos

    Hi Ray GÇô Thanks for sharing this informative
    recap, and I couldnGÇÖt agree more. CSPs have a wealth of data available to them
    and they are in a unique position to leverage what they have.-á Nearly
    everything that happens on a phone or tablet, a set top box, and across the
    network leaves an important insight into subscriber behavior.-á CSPs donGÇÖt lack data,
    they have mountains of it!-á The challenge is leveraging the right data.
    CSPs are very good at analyzing transactional data- much of this is structured.-á
    Transactional data is a major source of value to the business, but there is
    another valuable data source that is sometimes overlooked: detailed interaction
    data, which can reveal a lot about the quality of customer engagement.

    To leverage all forms of data, CSPs require an
    integrated analytics strategy that can provide across all data types in order
    to gain insights from it and make smarter decisions. As you mentioned, Teradata
    is already working to help customers in this space, and in fact, just last week announced the first integrated
    service provider framework to provide a 360-degree view of customers GÇô using
    both conventional transaction data and granular, detailed interaction data.
    This lets CSPs learn more about customer behavior and product preferences
    through visibility in ALL data interaction. Thanks again for your coverage of
    this topic, and I look forward to seeing what is to come in this space

    Ray Le Maistre
    Ray Le Maistre,
    User Rank: Light Sabre
    1/29/2013 | 4:35:53 PM
    re: The Big Data Challenge: 10 Tips for Telcos
    Worth noting that, because this is a topic that delves really depe into strategy etc the telco speakers are only going to reveal so much.... but it's clear that those that have started the journey are tackling many of the same challenges and the ones that are quite a way down the line eg Cricket are pretty excited about the richness of the information they are gleaning from their initial stab at converged analytics (with some joined-up thinking...)-á
    From The Founder
    The comms industry is rallying to the cause of open, independent interoperability testing.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    Telecom Innovators Video Showcase
    Tail-f, Cisco & What the Future Holds

    10|9|15   |   8:17   |   (0) comments

    Steve Saunders meets with Tail-f's Director of Technology, Carl Moberg, in Stockholm to discuss becoming part of Cisco, ETSI MANO, virtualization and the need to combine science and business in order to create opportunities for service providers.
    LRTV Interviews
    Broadband Forum Embraces SDN & NFV

    10|9|15   |   02:42   |   (0) comments

    At Gigabit Europe 2015, Robin Mersh and Kevin Foster from the Broadband Forum explain how the industry body is adapting to meet the SDN, NFV and cloud needs of the access network sector.
    LRTV Interviews
    Top Tips for FTTH Operators

    10|8|15   |   02:26   |   (0) comments

    At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
    LRTV Interviews
    M-net Calls for FTTx Unity

    10|8|15   |   03:45   |   (0) comments

    At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
    LRTV Documentaries
    The Business Case Challenge for NFV

    10|7|15   |   03:47   |   (0) comments

    Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
    LRTV Interviews
    JT Offers Some Gigabit Lessons

    10|7|15   |   4:08   |   (1) comment

    Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
    LRTV Interviews
    AT&T's Chiosi on the Potential of Open Source

    10|6|15   |   06:27   |   (0) comments

    AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
    LRTV Interviews
    Network Security in a Gigabit World

    10|6|15   |   05:52   |   (0) comments

    Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
    LRTV Documentaries
    Telefónica: In Search of Virtual Simplicity

    10|5|15   |   07:30   |   (0) comments

    Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
    LRTV Interviews
    Gigabit Europe Takeaways

    10|5|15   |   03:47   |   (0) comments

    Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
    Women in Comms Introduction Videos
    Intel Urges Women to Take Advantage of Their Seat at the Table

    10|5|15   |   4:27   |   (1) comment

    Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
    LRTV Interviews
    BT Updates on Plans

    10|2|15   |   03:16   |   (2) comments

    Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
    Upcoming Live Events
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    December 2, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
    Hot Topics
    M&A Speculation Swirls Around Juniper
    Ray Le Maistre, Editor-in-chief, 10/6/2015
    Cisco's Chambers Rules Out Political Bid
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/6/2015
    Cord Cutting? 'Fraid so.
    Brett Sappington, 10/7/2015
    Infinera Fleshes Out Its Metro 100G Story
    Ray Le Maistre, Editor-in-chief, 10/7/2015
    Cisco Makes 'Martian' Connection
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/9/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
    Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
    Cats with Phones
    "What?! I'm on with Finisar about their stock price tanking" Click Here