MegaFon Centralizes 200 Billion Real-Time, Mobile Communications Billing Transactions to Analyze Security and Revenue and Protect Against Fraud
 
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MegaFon Centralizes 200 Billion Real-Time, Mobile Communications Billing Transactions to Analyze Security and Revenue and Protect Against Fraud

  • Oracle Customer:  MegaFon
    Location:  Moscow, Russia
    Industry:  Communications
    Employees:  8,000
    Annual Revenue:  Over $5 Billion

Founded in May 2002, MegaFon is the only Russian telecommunications provider with a network that spans all of Russia, as well as the Republics of Abkhazia, South Ossetia, and Tajikistan. The company was the first in the country to launch 3G commercial operations. It is now Russia’s top provider of mobile internet solutions, and is ranked second highest for the number of active communications subscribers—with 62.8 million at the end of 2011, representing a 9.6% increase from the previous year.

Building on its growth, MegaFon recently acquired Synterra, a Russian mobile carrier. Following the acquisition, the acquired company’s billing information was in eight separate regional billing systems across Russia. To sustain growth in the multiple fixed and wireless segments, MegaFon needed a data-centric IT architecture for multiple disparate databases, to ensure accurate, trusted, and timely data for all corporate departments. For example, MegaFon wanted the ability to create smart marketing campaigns built on mobile subscriber profile data with real-time response analysis, so it could facilitate growth by maximizing conversion rates and average revenue per user.

MegaFon deployed Oracle Golden Gate 11g to extract billions of monthly transactions from eight regional billing systems. The data was integrated and centralized onto Oracle Database 11g, Enterprise Edition, and distributed to business-critical subsystems for revenue, fraud, and security analysis. As a result, MegaFon achieved more sophisticated, business-specific analysis for billing and customer data, to improve business decisions, facilitate more targeted customer marketing, and provide for ongoing growth.

 
 

 
 

Challenges

A word from MegaFon

  • “Oracle GoldenGate 11g has proven to be an extremely reliable, scalable, and easy-to-use solution that seamlessly captures and delivers data for more than 200 billion monthly transactions to our business-critical subsystems for analysis. The solution enables us to stay one step ahead of our competitors by facilitating innovation via rapid, sophisticated analytics.” – Alexander Bocharov, Head of Analytical Systems Development, MegaFon

  • Create a central data repository, capable of scaling to collect more than 200 billion pieces of real-time mobile billing information from eight regional billing systems
  • Implement a data-centric architecture to provide accurate, trusted, and timely data to various corporate departments, eliminating disparate customer data from divisions within the company
  • Optimize physical IT assets by avoiding overuse of the network and IT systems due to extra queries to obtain siloed mobile billing and production information
  • Gain more sophisticated analysis of mobile usage information to improve customer marketing initiatives and increase revenue generated from the current customer base
  • Improve mobile fraud detection and increase mobile security capabilities by distributing real-time customer data to business-critical subsystems for analysis

Solutions

  • Consolidated more than 200 billion monthly billing records from eight billing systems onto a centralized database using Oracle Database 11g, Enterprise Edition, and distributed data to multiple business-critical subsystems for more accurate, sophisticated analysis
  • Created a 360-degree view of the mobile subscriber base by consolidating information from an existing Oracle’s Siebel Customer Relationship Management application and disparate billing databases, which improved insight into customers
  • Deployed Oracle GoldenGate 11g to implement a data-centric IT architecture and provide more accurate, trusted, and timely data for sales, marketing, customer care, and other corporate departments
  • Lowered hardware and licensing costs using the scalability of Oracle Database 11g, Enterprise Edition to eliminate the need to purchase additional systems and software licenses for increased workloads
  • Enabled multiple offices and data centers across Russia to respond quickly to events—especially potential mobile security and fraud issues—thanks to more centralized business information and streamlined access to real-time reporting
  • Created sophisticated, targeted marketing campaigns based on enhanced mobile subscriber information, enabling Megafon to maximize market penetration and facilitate continued growth
  • Optimized IT resource use by offloading tasks—such as operational reporting and analytics—from billing and operations support systems to the new, centralized database
  • Centralized, real-time data collection from multiple sources—including databases for billing, customer-relationship management, and enterprise resource planning
  • Ensured that field offices and data centers have real-time access to key performance indicators, to better meet strategic goals and increase growth
  • Enabled more business-specific analysis of billing data—such as revenue assurance, customer analytics, and fraud detection—to accommodate the company’s revenue growth, customer insight, and security requirements

Why Oracle

MegaFon chose Oracle solutions because of performance, ease of implementation and use, scalability and agile management. The solution suite also lowers total cost of ownership, as a single MegaFon engineer maintains the entire Oracle GoldenGate 11g infrastructure.

“Concurrent with MegaFon’s goal to offer its customers the greatest potential for modern communications by investing in cutting-edge technologies, Oracle provided a solid technology foundation that helped us bring new offerings to the market, outperform the competition with more sophisticated business planning, and provide outstanding customer service while doing so,” said Alexander Bocharov, head of analytical systems development, MegaFon.

Implementation Process

MegaFon easily completed the implementation on budget, with minimal systems performance optimization required.