At present, most operators adopt FTTx as their main mode when constructing new broadband networks. Traditional services face fierce competition from OTT services and operator revenues is in constant decline. However, when turning to FTTx network construction, these operators are generally confronted with huge investments and long return on investment (ROI) periods. Their views on FTTx have grown more rational and they no longer pursue extensive construction, focusing instead on optimizing ROI and precise FTTx investments. To achieve this, the operators must identify valuable users before constructing networks.
Big Data Analytics to Precisely Identify Valuable Home Broadband Users
Currently, different regions around the world adopt different strategies for precise FTTx investments. These strategies generally incorporate the following phases: analyzing and determining potential users and valuable communities, setting market development goals based on the values of those communities, and promoting precise marketing, network planning, and construction.
Precise FTTx investments specifically focus on the following three phases:
First, analyzing big data to identify valuable users. This includes fully considering customer market and network data, information obtained through web crawling, and data from third parties (such as governments, industries, and OTT providers), and then abstracting valuable data with focus on important indexes such as the location, consumption, competition, development, and inventory.
Second, developing mathematical models and using big data to objectively evaluate the comprehensive value indexes of home broadband communities. Based on these indexes, development goals of home broadband users in different communities can be calculated.
Third, based on current home broadband network coverage, technology selection, and finance models, such as the total cost of operation (TCO) or net present value (NPV) model, considering the technologies related to bandwidth acceleration, new FTTx construction, and fiber-copper synergy in depth. In this way, precise fixed broadband network plans and construction solutions can be delivered for different communities.
Planning Tool to Seek Precise Home Broadband Investments
Huawei’s Smart CAPEX solution uses the uNetBuilder (a key planning tool) for precise home broadband investments. Based on multi-dimension data input and big data analysis, the uNetBuilder matches the geographic information system (GIS) and dynamically displays real-time information about live networks. Using this tool, operators are able to calculate community value indexes, set refined development goals, and accurately plan and construct home networks.
Smart CAPEX solution brings many benefits to operators. For example, their sales departments are able to set clear goals for the development of home broadband communities. The network planning and construction departments can work together to make plans and precise investments, greatly shortening the provisioning periods for valuable communities. The network O&M department can use complaint data, churn rate statistics, and heat maps to proactively identify problems related to network coverage, capability, and quality. Additionally, the marketing departments can improve the efficiency of precise marketing among home broadband users through the use of multi-dimensional data.
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