arXiv Machine Learning By Joydeb Kumar Sana, Subrata Chakraborty, M M Manjurul Islam

A Differentially Private Federated Proximal Optimization Framework for Customer Churn Prediction in Heterogeneous Federated Telecom Networks

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The paper introduces a Differentially Private Federated Proximal (DP‑FedProx) framework for predicting customer churn in telecom networks. It compares DP‑FedProx with FedAvg, DP‑FedAvg, FedProx, and several centralized/local models on two public churn datasets, showing that DP‑FedProx consistently outperforms FedAvg variants and matches the best centralized model with only a slight accuracy loss while offering privacy guarantees. SHAP analysis reveals that DP‑FedProx prioritizes revenue‑group features, highlighting its practical balance between performance and privacy.

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