Thesis Abstract

Abstract
Data mining techniques have become increasingly important in the telecommunications industry in Nigeria for various applications such as customer segmentation, churn prediction, network optimization, and fraud detection. This research project aims to analyze the data mining techniques employed by telecommunication companies in Nigeria to enhance their operations and improve customer satisfaction. The study will focus on exploring the types of data mining algorithms commonly used by these companies and evaluating their effectiveness in addressing key business challenges. A mixed-methods approach will be utilized, incorporating both quantitative analysis of data mining algorithms and qualitative interviews with industry experts to gain insights into the practical implementation of these techniques. The quantitative analysis will involve collecting data on the types of data mining algorithms used by major telecommunication companies in Nigeria and assessing their performance in terms of accuracy, efficiency, and scalability. This analysis will provide a comprehensive overview of the current state of data mining practices in the Nigerian telecommunications sector. Furthermore, qualitative interviews will be conducted with key stakeholders in the industry, including data analysts, business managers, and technical experts, to understand their perspectives on the benefits and challenges of utilizing data mining techniques. These interviews will also explore the specific use cases of data mining in areas such as customer relationship management, network optimization, and revenue assurance. By combining quantitative analysis with qualitative insights, this research aims to provide a holistic understanding of how telecommunication companies in Nigeria are leveraging data mining to gain a competitive edge in the market. The findings of this study are expected to contribute to the existing body of knowledge on data mining in the telecommunications industry and provide valuable recommendations for companies seeking to enhance their data analytics capabilities. By identifying the most effective data mining techniques and best practices for implementation, this research will help telecommunication companies in Nigeria make informed decisions on leveraging data-driven insights to improve operational efficiency and customer experience. Ultimately, the successful application of data mining techniques in the Nigerian telecommunications sector has the potential to drive innovation, increase profitability, and foster sustainable growth in the industry.

Thesis Overview

INTRODUCTION
1.1   BACKGROUND TO THE STUDY
The telecommunications industry generates and stores a tremendous amount of data (Han et al, 2002). These data include call detail data, which describes the calls that traverse the telecommunication networks, network data, which describes the state of the hardware and software components in the network, and customer data, which describes the telecommunication customers (Roset et al, 1999). The amount of data is so great that manual analysis of the data is difficult, if not impossible. The need to handle such large volumes of data led to the development of knowledge-based expert systems. These automated systems performed important functions such as identifying fraudulent phone calls and identifying network faults. The problem with this approach is that it is time consuming to obtain the knowledge from human experts (the “knowledge acquisition bottleneck”) and, in many cases, the experts do not have the requisite knowledge. The advent of data mining technology promised solutions to these problems and for this reason the telecommunications industry was an early adopter of data mining technology (Roset et al, 1999). Telecommunication data pose several interesting issues for data mining.The first concerns scale, since telecommunication databases may contain billions of records and are amongst the largest in the world. A second issue is that the raw data is often not suitable for data mining. For example, both call detail and network data are time-series data that represent individual events. Before this data can be effectively mined, useful “summary” features must be identified and then the data must be summarized using these features. Because many data mining applications in the telecommunications industry involve predicting very rare events, such as the failure of a networkelement or an instance of telephone fraud, rarity is another issue that must bedealt with. The fourth and final data mining issue concerns real-time performance because many data mining applications, such as fraud detection, requirethat any learned model/rules be applied in real-time (Ezawa& Norton, 1995). Several techniques has also been applied is tackling all these issues in telecommunication companies. Telecommunication networks are extremely complex configurations of equipment, comprised of thousands of interconnected components. Each network element is capable of generating error and status messages, which leads to a tremendous amount of network data. This data must be stored and analyzed in order to support network management functions, such as fault isolation. This data will minimally include a time stamp, a string that uniquely identifies the hardware or software component generating the message and a code that explains why the message is being generated. For example, such a message might indicate that “controller 7 experienced a loss of power for 30 seconds starting at 10:03 pm on Monday, May 12.” Due to the enormous number of network messages generated, technicians cannot possibly handle every message. For this reason expert systems have been developed to automatically analyze these messages and take appropriate action, only involving a technician when a problem cannot beautomatically resolved (Weiss, Ros&Singhal, 1998). This study is focused on MTN Nigeria. MTN Nigeria is part of the MTN Group, Africa's leading cellular telecommunications company. On May 16, 2001, MTN became the first GSM network to make a call following the globally lauded Nigerian GSM auction conducted by the Nigerian Communications Commission earlier in the year. Thereafter the company launched full commercial operations beginning with Lagos, Abuja and Port Harcourt. MTN paid $285m for one of four GSM licenses in Nigeria in January 2001. To date, in excess of US$1.8 billion has been invested building mobile telecommunications infrastructure in Nigeria. Since launch in August 2001, MTN has steadily deployed its services across Nigeria. It now provides services in 223 cities and towns, more than 10,000 villages and communities and a growing number of highways across the country, spanning the 36 states of the Nigeria and the Federal Capital Territory, Abuja. Many of these villages and communities are being connected to the world of telecommunications for the first time ever.  
1.2   STATEMENT OF THE PROBLEM
Fraud is a serious problem for telecommunication companies, leading to billions of dollars in lost revenue each year. Fraud can be divided into two categories: subscription fraud and superimposition fraud. Subscription fraud occurs when a customer opens an account with the intention of never paying for the account charges. Superimposition fraud involves a legitimate account with some legitimate activity, but also includes some “superimposed”illegitimate activity by a person other than the account holder.Superimposition fraud poses a bigger problem for the telecommunications industry and for this reason data mining technique is used for identifying this type of fraud. These applications should ideally operate in real-time using the call detail records and, once fraud is detected or suspected, should trigger some action. This action may be to immediately block the call and/or deactivate the account, or may involve opening an investigation, which will result in a call to the customer to verify the legitimacy of the account activity. However, this study will examine various data mining techniques of telecommunication companies in Nigeria.  
1.3   OBJECTIVES OF THE STUDY
The following are the objectives of this study:
1.   To provide an overview on data mining.
2.   To examine the various data mining techniques of telecommunication companies in Nigeria
3.   To identify the challenges of data mining faced by telecommunication companies in Nigeria
1.4   RESEARCH QUESTIONS
1.   What is data mining?
2.   What are the various data mining techniques of telecommunication companies in Nigeria?
3.   What are the challenges of data mining faced by telecommunication companies in Nigeria?
1.6   SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
1.   The outcome of this study will educate on data mining techniques of telecommunication companies in Nigeria, the data mining applications and how they can be used in fraud detection.
2.   This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area.
1.7   SCOPE/LIMITATIONS OF THE STUDY
This study will cover various data mining techniques used by telecommunication companies in Nigeria.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.