The growing use of smartphones and other connected devices has resulted in a surge in the volume of data moving through the networks of telecom operators. In addition, as 5G deployments increase, telecom operators’ accessibility to data will further grow, enabling them to monetize it by delivering value-added services and supporting new use cases.
However, it is apparent that the telecom industry can no longer rely on traditional approaches and methodologies to handle massive amounts of data. As a result, they are turning to next-gen technologies such as analytics and artificial intelligence (AI) to handle and manage the data.
The telecom analytics market, globally, was valued at $4.1 billion in 2020 and is forecasted to reach $22.5 billion by 2026, at a CAGR of 32.7% over the forecast period 2021–2026. The US is one of the largest markets for telecom analytics. Moreover, the country is home to some of the major players in the telecom analytics, making it a lucrative centre for innovation in the market.
Analytics and AI – Two-pronged strategy for telecom operators
Operators are leveraging analytics and AI both in internal and external operations.
Leading telecom players in the US have already started adopting data analytics and AI for improving customer experience, reducing costs, generating new revenue, and achieving the scale and security demanded by 5G and IoT. They are also integrating these technologies into their enterprise solutions to broaden their offerings – such as analytics/AI consulting, advisory, and system integration services, and create competitive differentiation.
A few use-cases, include:
- Optimize network — Increasing networking complexity drives the need for automated network modelling. AI monitors network status, forecasts network supply failures, and optimizes maintenance routes. For instance, AT&T uses AI to predict the impact of future climate change on its physical assets and network
- Improve sales and marketing — The need to provide personalized services has led to a surge in the use of AI in sales and marketing. Analytics and AI platforms help in providing customized services, by analysing customers’ telecom services usage, social media sentiment and buying patterns. T-Mobile, for example, was able to increase customer acquisitions by 400% using AI-powered personalized videos in email marketing
- Improve customer experience — Conversational chatbots powered by AI can handle customer requests and employ machine learning (ML) to improve support services. AT&T’s cybersecurity team uses ML algorithms to identify call patterns that can indicate spoofed caller IDs and robo-callers. AT&T has blocked or labelled six billion robocalls in 2020
- Streamline support functions — Analytics and AI automate repetitive tasks across support functions like HR, procurement, finance etc. and increase employee productivity
- Optimize infrastructure investments — With the help of data analytics, telecom companies may identify locations with limited or no internet or mobile access and take steps to increase coverage
- Sustainability — 5G requires more energy-intensive telecom equipment and bandwidth capacity, as well as massive volumes of data stored in an ever-increasing number of energy-intensive data centres. AI energy management solutions can be used to reduce the environmental footprint, due to the solutions’ ability to be used quickly and effectively across an entire network with little to no human intervention. Many operators are still in the early planning and testing stages of getting their AI efforts off the ground with respect to energy efficiency and can benefit from Softtek’s Blaulabs platform and the work we are doing for AT&T
The telecom industry is evolving, and data analytics and AI is at the forefront of that transformation
It is undeniable that data analytics and AI play a critical role in the telecom business and provide numerous prospects. It will aid industry participants in reorganising their business practises in the most efficient and profitable way feasible while focusing on customer satisfaction.
The traditional B2B service provided by telecom companies is voice connectivity. Revenue is shrinking due to alternatives such as internet-based apps (including WhatsApp) that provide calling and texting features. A holistic approach is necessary to extract values from rapidly growing data, monetize opportunities arising from AI and analytics, and offer end-to-end products and services.
The telecom market is prepared to encounter unparalleled dynamism in terms of new technology, consumer expectations, and macroeconomic conditions. Endurance in a fast-paced environment can only be achieved if businesses comprehend the data’s language. Telecom firms can stay ahead of the competition by implementing cutting-edge technologies. Many research studies have also shown that the potential for telecom organizations to profit from data analytics and AI is generous.
Source: GSMA Intelligence, Press Search, Management Consulting Reports
https://www.mordorintelligence.com/industry-reports/telecom-analytics-market
