The past several years have been tough for telecom operators: although the consumption of mobile data has increased massively, revenues and cash flows have dropped. Operators had to invest massively into their wireless networks while the growth of their customer base slowed down. While it is becoming harder to monetize the required communications infrastructure for telco operators, over-the-top content (OTT) such as music and video streaming brings gigantic turnovers to its distributors.

Major advances in data analytics, artificial intelligence, and other technologies are changing the game in the industry. Mobile operators can achieve breakthrough cost savings and capital intensity while maintaining or even increasing their scale using new data opportunities. Digital technology can help them to streamline business functions and please customers, reducing costs and raising sales.

But digitization is not just a threat; it also offers telecom companies an opportunity to rebuild their market positions, reimagine their business systems, and create innovative offerings for customers. AI might indeed be able to transform the industry—but telcos will need to spark that revolution. Predictive maintenance, for example, can identify potential failures, enabling fixes before systems—and the services that customers depend on—fail. Machine learning allows telcos to identify patterns in a user’s browsing and purchasing histories and then suggest what’s known as the next best offer—the next product that is most likely to resonate with that customer.

Pre-configured Analytics & Machine Learning systems​

Complexity of adressing business-specifics is often underestimated while technological requirements are overestimated
Lack of understanding in business units on how to utilize Advanced Analytics and Machine Learning
Access to experts with the right set of competencies across different domains
Availability of data at sufficient quality and quantity

Performance Drivers

Call center routingCost reduction for call center operations.
Telcos can automatically route customers to the best service personnel available. This will reduce call center costs massively and increase customer satisfaction as customer service will be faster and better adjusted to the customer’s needs.
Predictive Issue identificationCost reduction for call center operations
Telcos can identify potential issues and their root causes in the network or at customers’ access points in order to avoid long problem identification processes with service personnel. The service staff can focus on solving the customer’s problem instead of spending time to find the root cause.
Predictive MaintenanceCost reduction for call center operations
Telcos can identify problems and outages before they occur. They can avoid long outage periods for their customers by predicting failures and sending out service staff to fix the problems.
ChurnRevenue increase through extended customer relationships
Telcos can identify likely churners and identify offers that will convince them to stay.
Customer segmentationRevenue increase through improved customer relationships
Telcos can improve their customer understanding by identifying homogenous customer segments. This enables the provider to adjust tactical and strategic decisions towards their customers' needs.
Store segmentationRevenue increase through improved store locations
Telcos get transparency on their stores identifying different types of stores with a similar profile. This will help them to derive a specific strategy for each sales location.`
PricingMargin increase through optimized pricing
Telcos can optimize their pricing strategy by identifying their customers’ willingness to pay. Also, telcos can use competitive intelligence to adjust their prices and leverage local and temporal information to make prices dynamic. ​`
Personalized promotionsRevenues through upselling due to more relevant promotions
Telcos can customize offers to customers based on their needs. By understanding which promotions are meaningful for a specific customer, telcos can move away from mass communication to personalized interactions with their customers
Branch footprintRevenue increase through improved store footprint
Telcos can find the ideal location for their next branch or decide which stores to close/merge.
Fraud detectionCost reduction from reduced fraud
Telcos can detect and avoid fraud through customers such as customers not paying their bills.
Network footprint optimizationReduced costs through limiting investments
Telcos can find the ideal location for their next cell towers making their massive investments most impactful.

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