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 GĒō Thanks for sharing this informative
    recap, and I couldnGĒÖt agree more. CSPs have a wealth of data available to them
    and they are in a unique position to leverage what they have.-į Nearly
    everything that happens on a phone or tablet, a set top box, and across the
    network leaves an important insight into subscriber behavior.-į CSPs donGĒÖt lack data,
    they have mountains of it!-į The challenge is leveraging the right data.
    CSPs are very good at analyzing transactional data- much of this is structured.-į
    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 GĒō 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...)-į
    From The Founder
    Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    Wagner’s Ring
    The Business Case for Open Source

    11|30|15   |     |   (0) comments

    Open source helps companies enhance infrastructure, undermine competitors' advantage and teach collaboration. But there are problems.
    Between the CEOs
    Centec on Ethernet Switching

    11|26|15   |   09:58   |   (0) comments

    Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
    LRTV Custom TV
    Delivering Service Agility in the Virtualization Era

    11|25|15   |   5.41   |   (0) comments

    Interview with Massimo Fatato, WW OSS Business Lead, Hewlett Packard Enterprise.
    Wagner’s Ring
    How Might Open Source Fail?

    11|24|15   |     |   (10) comments

    Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
    LRTV Custom TV
    NFV Lifecycle Orchestration – a Fresh Vision for Telco

    11|23|15   |   6.40   |   (0) comments

    Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
    Between the CEOs
    Cisco's Virtual Role in Saudi

    11|20|15   |   12:15   |   (2) comments

    Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
    LRTV Huawei Video Resource Center
    Huawei Leads With Kubernetes for Cloud PaaS

    11|19|15   |   08:26   |   (0) comments

    Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
    Women in Comms Introduction Videos
    WiC in London: The Highlight Reel

    11|19|15   |   5:33   |   (1) comment

    NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
    LRTV Documentaries
    Why Saudi's So Hot for New Tech

    11|19|15   |   05:07   |   (0) comments

    Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
    LRTV Custom TV
    Why Data Models Deliver More Value Than Information Models

    11|19|15   |   5.08   |   (0) comments

    Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
    Telecom Innovators Video Showcase
    SDN Management & Orchestration in the WAN

    11|17|15   |   7.20   |   (0) comments

    Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
    LRTV Custom TV
    Flash Networks: Optimizing for Radio Spectral Efficiency

    11|17|15   |   3:34   |   (0) comments

    Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
    Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
    Hot Topics
    Samsung to Sell Wireless Networking Unit?
    Dan Jones, Mobile Editor, 11/23/2015
    Samsung: No Sale of Wireless Unit
    Dan Jones, Mobile Editor, 11/25/2015
    How Might Open Source Fail?
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/24/2015
    Hong Kong Moments
    Ray Le Maistre, Editor-in-chief, 11/26/2015
    Networking Shines in HP's Gloomy Final Earnings
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2015
    Like Us on Facebook
    Twitter Feed
    December 15, 2015
    Virtualizing Cable Services
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
    Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
    Cats with Phones
    Can't Find the Phone on Thanksgiving? Click Here
    Check under the cat! (hint: bottom right)
    Live Digital Audio

    Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.