The amount of money that telecommunications companies will spend on data-warehousing projects and systems will increase from $284 million this year to $2 billion in 2003, according to Insights Research, Parsippany, NJ.
Other findings from its new study, “Data Warehousing in Telephone Networks 1998-2003,” show that the cost of implementing a data mart or data warehouse can run anywhere from $40,000 to $3 million, depending on the size of the carrier and the number of customers involved. It also said data warehouses are capable of reducing churn, or the rapid turnover of customers to other carriers, which could save companies an average of 1.9 million a year. The average industry churn rate of 20 percent to 25 percent implies that carriers with 500,000 customers will lose 125,000 to competing offers this year.
