Thursday, November 26, 2009

Orange Facing Legislation To Cross Data Mining

Orange is one of the world leading provider of Internet and cell phone networks. The company owns by instance the biggest French marketshare.

Orange aims to leverage its customer data base in the DSL Internet market to prospect new customers, and hence to make cross selling strategies.

Thanks to data mining, Orange will be able to segment its existing customer data base to provide the right message at the right persons. The challenge of the industry is the conversion of Internet and mobile devices, which requires companies to propose comprehensive bids including, phoning, Internet and TV access.

So far French government has not allowed Orange to do so. Probably because Orange had a strong customer data base due to the former monopoly it had couple of years ago, prior to the privatization of the industry. Hence, they have a great number of customers that have been given to them at this moment, and that have never decided to switch.

I believe there is indeed a great opportunity for Orange to get leverage from this asset. However, so far it doesn't seem to be possible.