The Analysis of the Telecommunications Sector by the Means of Data Mining Techniques

Journal Title: Journal of Applied Quantitative Methods - Year 2006, Vol 1, Issue 2

Abstract

Nowadays, the Internet comprises of huge amount of electronic information concerning different companies’ financial performance. This amount greatly exceeds our capacity to analyze it, the problem being that we often lack tools to quickly and accurately process these data. DM techniques are interesting mechanisms that can be applied to rapidly changing industries, in order to get an overview of the situation. One such market is the international telecommunications industry. In this paper we construct a framework using DM techniques that enables us to make class predictions about telecommunication companies’ financial performance. Our methodology allows us to analyze the movements of the largest telecommunications companies, to see how companies perform financially compared to their competitors, what they are good at, who are the major competitors in this industry, etc. The dataset contains 88 companies from five different regions: Asia, Canada, Continental Europe, Northern Europe, and USA, and consists of seven financial ratios per company per year. The data used to calculate the ratios were collected from companies’ annual reports (between 1995 and 1999), using the Internet as the primary medium. We used data from 2000 and 2001 to test our classification models. We have obtained good maps (SOMs) in terms of ease-of-readability and the average quantization error and clearly identified the six financial performance clusters. The results of our class prediction models also correspond very well with the SOM model.

Authors and Affiliations

Adrian COSTEA

Keywords

Related Articles

The Automated System of the Rhythm Analysis in the Educational Process of a Higher Educational Institution on the Basis of Aprioristic Data

In this article we consider the problems of algorithm functioning development for the system of automated analysis of the educational process rhythm in a higher educational institution. Using devices of experimental plan...

The Degree of Software Licences Usage in Schools, High-schools and Universities

The papers develop main aspects on the legal software usage in educational area. It will be propose indicators for measuring the degree of licences usage. Case studies are oriented to gymnasia stage.

The Empirical Analysis of the Effects of Economic Growth and Exchange Rate on Current Account Deficit: Romania and Turkey Samples

The aim of this study is to analyse the effects of economic growth and real effective exchange rate on current account deficit for Romania and Turkey using Structural Vector Autoregressive Analysis (SVAR). For this purpo...

METHODS FOR ASSESSING THE INFORMATION TECHNOLOGIES AND COMMUNICATION IMPACT ON COMPANIES

The determination, identification and evaluation of the impact of Information Technologies and Communication use in companies are complex issues that require quantitative and qualitative approaches that take into account...

ADAPT BUSINESS PROCESSES TO SERVICE ORIENTED ENVIRONMENT TO ACHIEVE BUSINESS AGILITY

In the modern economy, creating agile business processes is one of the conditions to obtain/ maintain competitive advantage on the market. In addition, the agility of business processes, combined with the agility of empl...

Download PDF file
  • EP ID EP139936
  • DOI -
  • Views 116
  • Downloads 0

How To Cite

Adrian COSTEA (2006). The Analysis of the Telecommunications Sector by the Means of Data Mining Techniques. Journal of Applied Quantitative Methods, 1(2), 144-150. https://europub.co.uk/articles/-A-139936