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The role of data analytics in the telecommunications industry

Data analytics in telecommunications

One of the most fascinating things to follow through the course of history is how our ability to communicate has evolved. From the earliest sign languages to modern smartphones, the modes of conversation have seen massive evolution during this period.

The introduction of telecommunication is a pivotal point in the evolution of communication; letters and other written forms gave way to more sophisticated and advanced systems like semaphore lines—a form of optical telegraphs—and electrical telegraphs.

The real impetus for the rise of telecommunication, however, didn’t arrive until the invention of the telephone by Alexander Graham Bell in 1876. It sparked a revolution in the telecommunication industry and has powered subsequent innovations that have given us the world of communication as we know it today.

Now, we enjoy features like instant messaging, live broadcasting, social media, and even video conferencing through the power of telecommunication. This has made the world a global village, giving us more ways to communicate our ideas, thoughts, and feelings with our loved ones.

There are more than 14 billion connected devices in the world, and with this enhanced means of connection and accessibility, we generate more data than ever before. With the power of data analytics, telecommunications providers are utilizing this wealth of data to deliver a better telecommunication service.

In this post, let’s explore the role of data analytics in the telecommunication industry and how it’s driving the industry to new heights.

Data analytics allows telecommunication companies to connect more people

Despite all the advances in technology, one of the biggest challenges for the telecommunication industry is providing equal service across all geographical locations. There has always been a clear disparity between coverage in rural areas and urban areas.

In developing countries, for example, 17% of the rural population live in areas that have no mobile coverage and a further 19% live in areas with only 2G internet connectivity. Moreover, urban households are 76% likely to have an internet connection while only 38% of the rural population are likely to have the same.

That said, telecommunication companies are making efforts to increase their coverage of rural areas, and data analytics is a critical tool in this process. 

With the power of data analytics, telecom providers can identify areas with low or no internet and mobile connectivity and take measures to build telecommunication infrastructure for improved coverage.

Data analytics helps telecom operators offer more specialized mobile and internet services

Not all mobile or internet users are alike; different people use their devices based on their needs. One of the common trends, however, has been the waning popularity of traditional calls as a means of communication, as video conferencing, instant messaging, and other audio-related communication modes have become popular, especially among the younger generation.

With data analytics, telecom providers can identify usage patterns of users, which can then be used to create hyper-personalized mobile and internet plans. 

Reliance Communication, a major mobile service provider, for example, used data analytics to recognize the shift in the market; more and more customers came from rural areas and introduced Reliance Jio, which offers better internet and mobile connectivity at low prices, to attract rural customers.

US mobile carriers like Verizon, T-Mobile, and AT&T also offer specialized mobile and internet plans that cater to specific customer needs and preferences.

The case in point here is that data analytics allows mobile and internet service providers to identify niche customer segments and provide specialized services that meet their requirements.

The telecommunications industry is changing and data analytics is at the center of it

The telecommunications industry has come a long way since its beginnings in the late 19th century. Today with billions of connected devices, it has helped reinvent how we communicate with our friends and family.

Faced with modern challenges, the industry is transforming itself again, and data analytics is at the forefront of this transformation.