Pls help to answer these questions with few recent and valid examples in details
ID: 3752465 • Letter: P
Question
Pls help to answer these questions with few recent and valid examples in details.
Application Case 3. A Better Data Plan: Well-Established TELCOs Leverage Data Warehousing and Analytics to Stay on Top in a Competitive Industry Mobile service providers Gi.e., Telecommunication service to plan pricing. In fact, veteran carriers face Companies, or TELCOs in short) that helped trigger many of the same challenges that up-and-coming the explosive growth of the industry in the mid- to carriers do: retaining customers, decreasing costs late-1990s have long reaped the benefits of being first fine-tuning pricing models, improving customer sat- to market. But to stay competitive, these companies isfaction, acquiring new customers, and understand- must continuously refine everything from customer ing the role of social media in customer loyalty (Continued)Explanation / Answer
Q1)
To stay competitive, TELCOs must continuously refine everything from customer service to plan pricing.
The major challenges faced by both entrenched and new companies in this industry include: retaining customers, decreasing costs, fine-tuning pricing models, improving customer satisfaction, acquiring new customers, and understanding the role of social media in customer loyalty.
For Examples-:
a) Competition from OTT services-The phenomenal growth of mobile messaging apps in the last few years has become a serious threat to telco revenue. Approximately 2.5 billion people worldwide now use at least one messaging app, which is steering valuable traffic away from telco’s text services. There is already an obvious decline in the Average Revenue Per User (ARPU) of telcos, with a decrease from 34.58% in 2007 to 22.11% in 2015. If the trend continues, text messaging will die out completely and OTT service providers will continue to steal valuable revenue from telcos. Add the voice services provided on top of these messaging apps and the issue is much more significant.
b) Gearing up for the IoT-The integration of the IoT into our everyday lives is edging ever closer, and it is predicted that there will be 21 billion connected devices by 2020. To sustain these numbers, platforms that support incredibly high levels of connectivity will be needed. This places a lot of pressure on telcos to develop a converged platform that is sufficiently functional to support the full weight of the IoT. The integration of technology companies with telco services to form the IoT could also result in a hugely compressed telco infrastructure.
c)Decrease in voice revenue-The way people communicate is changing: where voice and text used to dominate the communications industry, now internet messaging and VoIP do. Smartphone traffic is moving to WiFi, increasing from a total of 59% of smartphone traffic in 2011 to 81% in 2013. As a consequence, voice traffic has decreased from 50% in 2009 to 41% in 2014, leading to a decrease in voice revenue of 2.7% by 2014. Previously voice revenue was the largest source of income for telcos, and so the decrease in voice revenue has led to an overall decline in ARPU. Telcos must find an additional source of revenue to replace voice and text – such as network level Value Added Services.
d)Developing 5G-5G is expected to become available to the public by 2020. It is expected to improve not just the speed of the spectrum, but the capacity and latency as well. Ultimately, 5G will provide a browsing experience for users with less delay and unlimited connections. The potential of 5G will also facilitate development of IoT, meaning 5G will be not just an upgrade, but a complete revolution of mobile technology. However, there are many industry sectors and companies who could profit from 5G – including technology giants such as Apple, who are investing in 5G to support their smartphones, and IoT companies in need of a platform from which they can launch their products. The involvement of other industries puts telcos under pressure to develop 5G technology before they are shut out of the process altogether. The race is on – and telcos must invest heavily if they are to produce a network with the promised capabilities of 5G.
Q2)
1)Highly targeted data analytics play an ever more critical role in helping carriers secure or improve their standing in an increasingly competitive marketplace.
2)Argentina’s Telefónica de Argentina used analytics for its “traceability project,” which tracked the factors involved in customer churn, a big problem among phone service carriers.
3)France’s Bouygues Telecom used BI technologies to facilitate cost reduction through automation via its Teradata-based marketing operations management system, which automates marketing/communications collateral production.
4)Pakistan’s Mobilink uses BI to help acquire customers and grow their subscriber network, largely aided by social networking.
Q3)
1)TELCOs control the telecommunications infrastructure, and acquire much usage data as a result.
2)They have the technical expertise to create, deploy, and refine plans to address their business challenges. The industry and mobile technology have expanded and improved over the years, which provides a strong foundation on which to build intelligent solutions.
3)The data analytics solutions that have been created to meet these challenges have also improved drastically over the past few years, placing TELCOs in a good position to capitalize on their technological advantages.