A Research Of Telecom Industry CDMA Customer Credit Evaluation Based On Data Mining

China’s telecommunications industry has maintained rapid growth, according to the Ministry of the latest data show that, by the end of Novermber2012, the number of mobile phone users reached11.04. Among them, the number of China Telecom mobile users was1.3Billion, ranking first in the world. China Telecom’s Tianyi users broken billion to become the world’s largest CDMA network operators. With the rapid development of mobile communication industry, mobile communication market is becoming saturated, the credit problem of mobile telephone users has also become increasingly prominent, the issues of arrearage and downtime become the focus of major operators attention. The number of X Province’s Telecom CDMA users who have benn in arrearage and been stopped in service reaches about1.2million in a month, is25%to30%of the CDMA user.Less of the communications industry have records of customer credit evaluation of the operator, at present,what the operator provide universally is typically the model that pay first, consum after.As long as customer’s telephone charge is overdue,they will be out of service. This meaure may bring about the increasement of customer complaints but decreasement of the capacity of service level.Worst of all, it may couses a serious problem of customer churn;also,it will hinder the diversified development of mobile industry and the raise of telecoms operator’s competition ability. So the operators need to find an accurate way to evaluae the customer’s credit according to their basic attributes and behavior.Therefore the operators need to find an accurate way to evalues the customer’s credit,need to strengthen the control and manage of the mobile customers credit, ensure that the users fee left is sufficient,and will pay the bill on time. This has become an important work of mobile communication enterprise. Also it is meaningful to promote the development of mobile communication industry healthily and Sustainably. This paper firstly introduces the overview and5C principle of credit evaluation and customer credit evaluation theory content. Then from the model concepts and practical angle, summarizes the current credit evaluation model those are commonly used, expounds the development process of the credit evaluation model in the field of credit evaluation, and carries on the comparative analysis of the models, analysis of the advantages and applicability of the models. The paper analyzes the drawbacks of existing credit management, design the variable system of credit evaluation model from the angle of external environment, user performance history, user attitudes and consumption ability, establish the data mining model using factor analysis and entropy method,finally evaluate customers’ credit scores, and validate the model from the business point of view. Results show that, the model is practical and applicable, this paper has feasibility and reference.Using the real and effective data, establishes the comprehensive evaluation model based on factor analysis, to provide reliable scientific basis for the optimization of telecom enterprise credit management. I hope this paper can provide reference for the credit evaluation and credit management of the communications industry, and promote customer credit management level of telecom operators’improvement and the healthy development of China’s telecom industry.