SÃO PAULO, Feb. 21, 2017 /PRNewswire/ -- Despite a decline in traditional services value in the Latin American Telecommunications (telcos) market, big data could act as a transformation enabler, sparking new growth opportunities across the region. Currently, telco providers are cautiously adopting big data to improve their customer experience and relationships. The next phase will be to reshape their businesses with predictive analytics, next-generation applications and advanced use-case complexity, followed by monetizing strategies such as selling data to end users.
"Big Data could offer vast business and revenue-generating opportunities. Data from users, services, networks, locations, and management sources could be monetized through product promotion, targeted advertisement, up-sales, quality of experience (QoE) and network optimization," said Frost & Sullivan Digital Transformation Industry Analyst Carina Gonçalves.
Big Data Telecommunications Market Evolution in Latin America is part of Frost & Sullivan's Mobile & Wireless Communications Growth Partnership Subscription. The total capital expenditure (CAPEX) of Big Data telco services in the Latin American market reached $633.3 million in 2016. The investment is expected to reach $1.779.2 million in 2022, led by Brazil and Mexico. The study provides insights into Big Data developments among the main telco providers in Latin America, identifying structure, usage and investments. Geographic coverage includes Brazil, Argentina, Chile, Colombia, Mexico and Peru.
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Due to a lack of knowledge there is resistance from some businesses to adopt big data. Effectively setting the value that big data will extract and justifying return on investment with incremental profit impact are difficult. The governance and struggle to define the focus of Big Data initiatives are restraining Big Data implementation in this region. Other restraints impacting the market include:
- Telcos need to rapidly implement new applications to drive market evolution; however, a lack of a qualified workforce is slowing this process.
- Security and privacy are constant concerns, especially around the absence of data-sharing policies regarding privacy and promotion of ethical and safe use of data.
- Dealing with large, complex organizations with multiple vendor systems and integrating all data and sources is time consuming and challenging.
- Poor algorithms were applied to new use cases; therefore, telcos are developing their own Big Data solutions, using vendors for technological support only.
"Telcos are struggling to monetize over-the-top, value-added, and cloud services. Additionally, traditional connectivity and capacity are declining. Network performance aligned with telco business targets and combining insights across services will be critical to success," noted Gonçalves.
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Big Data Telecommunications Market Evolution in Latin America
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SOURCE Frost & Sullivan