Saving $150 Million Through Value Based
This leading telecommunications service provider wanted to optimize network capacity. The goal was to have enough capacity to meet existing and forecasted demand, but not excess capacity resulting in inﬂated capital expenditures.
The Need for More Accurate Capacity Planning
Two factors that impact capacity planning are the large volume of subscribers with smart phones and new data services. Previously, capacity forecasting was based on voice data only and not mobile broadband data. As mobile broadband usage continues to rise, the traditional forecasting method is no longer accurate. When demand exceeds capacity, calls are dropped and the speed of downloads is slower, resulting in a decline in customer satisfaction and customer churn. On the other hand, too much capacity results in overspending on capital expenditures.
The company wanted to reduce costs by using an advanced forecasting methodology that correlated subscriber, network, and location data. In addition, the company had a goal of improving forecast accuracy by comparing forecasted network traffic against actual traffic. Finally, they wanted a user interface that supported reporting, interactive what-if scenarios, and visualization with clustering and geographic heat map functionality.
Significant Improvements in Capacity Planning with Datameer
Using Datameer, the company integrates subscriber data including demographics, device, access technology (2G/3G/4G), and application behavior. They then correlate subscriber data with network performance data and network capabilities (such as 3G capacity and Long-Term Evolution [LTE] network availability). They also analyze and correlate subscriber and network data with specific physical location data such as pedestrian areas, public entrances, events, office/business parks, and tourist attractions to perform a clustering analysis.
To visualize both highly congested network areas and areas with excess network capacity, the company uses Datameer to generate a network traffic heat map. This enables them to see where demand is very near to capacity, in which case LTE rollouts should be prioritized and marketing efforts should be scaled back. They also identify geographic areas where excess capacity exists and where they can potentially ramp up marketing activities.
The company uses Datameer to monitor actual versus forecasted network traffic and to continually refine the forecasting model to improve its overall accuracy. With Datameer, they also built a what-if model to analyze how different revenue growth and increase in specific access technology usage will impact capital expenditures. Finally, they use Datameer to analyze new over-the-top (OTT) services, understand the network impact, and build the best business strategy to accommodate these new services.
Expected Annual Savings of $150 Million or More
With the new insight generated through Datameer, the company anticipates savings of more than $150 million each year in capital expenditures.
Wanted to optimize network capacity
Improved forecasting, anticipated annual savings of $150 million in capital expenditures.
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