How AI, OpenAI, and ChatGPT impact business and software.
IDC Technology Spotlight in collaboration with Tech Mahindra
1. US42325917
T E C H N O L O G Y S P O T L I G H T
Implementing Self-Service Predictive Analytics
in the Telecom Sector
March 2017
Adapted from Business Strategy: Technology-Oriented Value Chain 2016–2017 Investment Guide
by Kimberly Knickle, Heather Ashton, et. al., IDC #US40539916
Brought to you by Tech Mahindra, Powered by IDC
Communications service providers (CSPs) own and manage communications networks with a business
model based on the transport of information. CSPs sell voice and data services to both business and
residential end users. They also make money by providing network connectivity to other telecom
companies and by wholesaling circuits to heavy network users such as internet service providers (ISPs)
and large corporations. The industry is undergoing rapid change as fixed-line voice revenue, traditionally
the biggest revenue generator, continues to decline and service delivery is more about data and mobility.
Revenue growth is greater for IP-based voice services and mobile data services. Given that shift,
IDC Manufacturing Insights is seeing an increased appetite for advanced analytics, particularly self-service
analytics, in this sector. This Technology Spotlight examines the role of self-service, predictive analytics in
the telecom sector. It also looks at the role of Tech Mahindra in addressing the challenges that CSPs face
in today's market.
Business Challenges in the Current Environment
On a global basis, CSPs are organized in structures that range from publicly owned corporations to
government-owned ministries. Deregulation caused the breakup of most PTTs, which were large
national and regional operators. Today, national competition in the communications industry is often
described in terms of "incumbents" and "competitors."
Increasingly, market competition on an international basis is shaped by the remnants of the
incumbent CSPs and the aggregation of mobile CSPs into larger groups that dominate spending and
shape many industry trends. At this stage, the communications industry players are generally publicly
owned companies rather than government-owned monopolies with a diverse set of shareholders
common to public companies.
The competitive environment for CSPs is intense. In the consumer and small to medium-sized
business markets, the industry faces one of the highest rates of churn (the movement of customers to
a competitor) and CSPs compete heavily on price. For these markets, success relies heavily on
branding. Heavy investments in efficient billing systems and outsourcing operations contribute to
financial viability. Corporate customers are less price sensitive and more concerned with the quality
and reliability of their communications systems. They are willing to pay for premium services such as
higher-security private networks and videoconferencing.
The CSP customer device or corporate infrastructure shapes what CSP service offerings can deliver.
Costly access networks stretching across vast geographic footprints, especially radio network
coverage and broadband fiber deployments, provide the CSP with the reach to the customer's
location. The dynamics of the industry are varied, from the influence of the buyer to competition and
substitutes, as shown in Figure 1.