Potomac, MD, April 10, 2016 --(PR.com
)-- At a time when telcos are struggling to evolve from dumb-pipe to smart-pipe or an enabler/ provider of next generation digital services – strategic implementation of big data can open up new wave of opportunities.
So far, Telcos have achieved average revenue growth of up to 15% by specifically investing in big data innovations and applications. Moreover, the benefits are not limited to just revenue growth across their existing portfolios, but have also allowed selected telcos to diversify and create fresh revenue streams.
However, almost 50% of telcos lack a clear big data strategy. The situation is highly alarming as telcos will be outpaced by other industry verticals and more so by non-telcos if they do not move fast enough.
Let’s check few start-ups that are leveraging big data to carve a profitable niche:
“Branch International”, founded in early 2015 by Matt Flannery, is an app-based microfinance company currently offering services in East Africa. It offers loans of $2.5 - $500 not through local “branch” offices, but through a user’s smartphone.
The company creates credit profile of a user by processing thousands of data points based on handset details, SMS logs, social network data, GPS data, call logs, and contact lists. Based on such profiles it offers tailored loan products. The company charges interest of 6% - 16%, based on a borrower's creditworthiness. The average loan amount is reportedly $30.
The app has been downloaded more than 100,000 times. The company has recently raised $9.2 million in Series A funding.
“InVenture Capital Corp.” is another good example of leveraging big data for offering loans in Kenya and Tanzania via smartphones. The company takes into account more than 10,000 data points per mobile user to determine their credit profile. The company lists several investors, including Google Ventures.
Collaboration among industries and third parties, data sharing and big data analytics are at the core of such projects. Telcos already hold a huge amount of data, however, that is not sufficient for designing such platforms and services. Cross-industry collaboration and optimal resource allocation are required to add value to the information gathered through data. But, how can telcos afford to allow every other business to take advantage of the data that is being generated at telcos’ end. More importantly, how can telcos be mere spectators with so much investment and legacy at stake?
TeleResearch Labs’ Thought Provokers:
1. Why the real benefits of big data have been elusive for telcos?
2. Which are other similar big data projects in development/ implementation phase globally?
3. What is the significance of such projects for telecom players in other markets?
4. How can telecom players propose big data projects to other industries and secure long term contracts?
5. Why many efforts to execute the big data strategy have not lived up to the high expectations?
6. What is an ideal proposition for MNOs, MVNOs, M2M Players, OTTs, and Infrastructure Vendors for such offerings?
7. Why have MNOs an advantage over other players in the telecom sector for building and offering such services?
The answer to these questions and many noteworthy cases of big data with the revenue earning opportunities for telcos in both the developed and emerging markets can be found in our latest report – Worldwide Mobile Big Data Market 2016-2020.