A World Without Telecom

Telecom, the most important activity in our daily lives, is actually the way we communicate to other people in our society and the world. We use several devices to reach out to other people such as mobile phones, television, radio and the Internet. What will happen if all of a sudden, the world will lose its means of telecommunications? What happens if all of a sudden our modern gadgets would stop working? If these events happen, is there a way for use to convey our message towards that specific person?

When all else fails, only one thing will happen. We would go back to the times when there was no electricity and no telephones or Internet. Even with the absence of modern devices and gadgets, the people will not stop communicating. During the earlier times where telephone is not yet available, telecommunication involved audio signals like drum beats and lung-blown or whistle and visual signals like smoke and signal flags. Why do you think that even without the use of gadgets they still understood each other?

Our modern gadgets only aid us in doing effective communication. It enhances the distance that we are able to reach at a significantly short time. Without telephones or the Internet, the messages that we need to transmit to the other side of the world would take months before it reaches the intended recipient.

The faster the communication process between people would be, the faster would be the progress of the world. Hence, the world without modern devices used for telecommunication won’t stop progressing all at once. The world will start to slow down in progress and people will go back to the time when the only ones they were interacting were the people living in their immediate vicinity.

Would you like to live in that kind of society?

Customer Retention Strategies in Telecom Industry

Abstract:

In the telecommunication industry, customers are able to choose among multiple service providers. In such a fiercely competitive telecommunication market, organizations should predict a 30-35 percent annual churn rate and it might also cost them 5-10 times more to recruit a new customer than to retain an existing one.

As some customers are evidently more valuable than others it is important to have a critical tool for customer segmentation hence improving profitability among different customer groups. Segmentation is also considered as one of the best ways to have more targeted communication with the customers.

In any industry, customers could vary greatly on different attributes such as values, demographics, behavior, frequency of purchases etc. In the past, most of the segmentation was done on the basis on these attributes. Whereas, today, this model has changed and moved towards ‘Value-Based Segmenting’, which focuses more on the revenue generated by each customer.

Data Collection or Mining:

Data mining is a process to understand the data and use it towards further application development. There are several methods to collect data; but the basic data could be fetched based on the following seven questions;

1. How: How can a customer cause a call detail record? By making a voice call, or receiving voice call.

2. Who: Who is the customer calling? Does he call to fixed lines? Does he call to mobiles?

3. What: What is the location of the caller?

4. When: When does a customer call? A business customer can call during office daytime, or in private time in the evening or at night and during the weekend.

5. Where: Where is the customer calling?

6. How long: How long is the customer calling?

7. How often: How often does a customer call or receive a call?

Segmentation

Segmentation can be done in various bases:

  1. Demographics/behavior/age group based – most common
  2. Value- needs based – surveys
  3. Segmentation by usage – data driven
  4. Segmentation by billing

1. Demographics/behavior/age group based – most common: Demographic segmentation is one of the highly effective segmentation types, where most of the segmentation data will be drilled down using factors such as age, gender, behavior social status etc. It is basically done by the study of population. This segmentation helps an organization to chart customers into various groups based on common variables. Thus, based on the results, organizations can target these groups and devise better strategies. The availability of data is the main advantage of this segmentation.

2. Value- needs based – Surveys: Here, the organizations will be sending out surveys based on the information what they need from the customer to improve their products and services they are offering. This segmentation will help organizations to evaluate themselves as well as to know what is needed for a customer. Value – needs based surveys are often be considered as an efficient means of communication with customers.

3. Segmentation by Usage- Data driven:Organizations can categorize their customers based on the usage he/she is having. So the basic values would be; No: of minutes he/she has called in the last 30/15 days, To which destination he/she makes the most no: of calls, top 5-10 destinations where he/she have made calls/send SMS, etc. Segmentation based by usage data is one of the most focused areas in telecom. Based on this organizations can work on creating a database which need to be updated daily.

4. Segmentation by Billing: Though billing systems are often perceived as business back end operations, billing plays a vital role in the communication service providers’ (CSP) marketing & sales strategy. Here, customer billing data such as monthly or annual billing datas will be extracted and transformed into usable analytics for segmentation.

Conclusion:

A better segmentation strategy can bring a great amount of gains such as better profitability, growth and communications for telecommunication companies by better understanding their customers and their needs.

VoIP Leading Over Telecom Industry

Earlier telecom industry dominated the communication all over the world but with the inception of VoIP technology tables had been turned upside down. Now most of the companies are replacing the traditional telephone services with VoIP technology via softphones and mobile dialers. Organisations have put down the PBX systems and VoIP solutions have taken the front seat. The diminishing telephone services have been rooted by the ability of VoIP providing lower costs benefits, efficiency, productivity hike, ubiquity and much more to talk about. A lot more features are encompassed in VoIP technology as compared to traditional systems of communication. Within melange choices one will choose only that option that is cheap and best, that can give more in less investment and this is what actually goes with VoIP technology. Telecom companies have been hit hard by the VoIP technology as it has been proving marvels in ending telecom monopolies.

The concept used in VoIP is utilisation of IP data packets which ensures the efficiency, low cost features while the concept in telephone system was mere conversion of voice signals into electrical signals and electrical signals back to voice signals. The seamless integration of various applications in VoIP and the ability of VoIP system to make calls with any computer possessing VoIP tools have made it more amiable and demanding in business organisations. Since legacy telephone systems are constrained to limited features VoIP technology is cropping up with tremendous novel amalgamations like cloud with VoIP, Machine learning with VoIP etc.

Telecommunication companies incurred high costs due to hubs, configuration, installation, and maintenance issues. It provided only voice mail and single call forwarding settings. VoIP proves to be far above all this. It incurs less cost, less load, high quality results and efficient means of communication. Long distance calls are easily handled by VoIP almost free after installation. A well established internet infrastructure is the basic requisite. VoIP enables many applications such as mobile app integration, instant messaging, video calling and conferencing etc. VoIP offers easy routing on second, fourth and eighth ring of which telecom systems are deprived. A feature called ‘barge’ allows silent hearing of the conversation between customer support and client. Another feature called ‘whisper’ allows the supervisor to interrupt and speak only to the customer while the customer is unaware of the communication taking place between them. These features help a lot in day to day business operations.

The telecom companies have to survive the replacement of IP PBX systems and hence this is the reason why telecom companies are turning out to be the VoIP companies. They are now purchasing hosted VoIP service providers and are supporting VoIP in one or the other way. Certainly in future PSTN system will meet a dead end. Starting afresh with the VoIP technology many small start ups are transforming into bigger companies and increasing their revenues than ever before. The demanding use of VoIP technology has not only affected the business organisations to the best but also the telecom industry to its worst.