Month: May 2021

Until a few years back, blockchain was only discussed in relation to payments…that too, primarily in the context of Bitcoin. To be fair, that’s how blockchain started. Over the years, the number of non-financial use-cases of bitcoin has been on an accelerated rise. Today, this technology is gaining traction in the telecom sector as technologies such as IoT and 5G start coming into this space.

Blockchain is a distributed digital ledger that enables information to be recorded in a shared database. This technology has been gaining traction owing to the rise of the digital economy and the promise of potentially transforming industries such as telecom and help them succeed in an environment of heightened competition using blockchain-powered applications.

Telecom in 2021 – how things stand

The way the telecom industry connects people has evolved but not changed considerably. Sure, SIM cards have become smaller and now we transmit audio, video, and text over the internet in different ways. Despite this, the core telephone logic based on SIM cards continues to be the same as when they were developed in 1991.

In all of this, what has undergone a complete transformation is the way we treat data.

The speed of transfer has increased phenomenally over the years. This trend will continue with the advent of 5G technology. With 5G comes the promise of low latency, higher volumes of data transfer, and a huge network of interconnected devices. This will also drive the accelerated proliferation of IoT devices and applications and allow us to achieve a variety of previously unimaginable use cases.

Whenever a new technology or capability emerges, the associated vertical sectors decide how, when, and where to leverage its capabilities. IoT technology use, for example, will become increasingly more talked about in the telecom sector as 5G networks mature. The hope is, new opportunities will emerge for operators to offer innovative products and services such as built-to-purpose consumer applications, wide-area IoT network solution, and IoT managed services.

It can be used for remote system monitoring and asset management, be a part of cloud migration strategies, or as an avenue to open up new revenue streams by providing edge computing infrastructure for over the top (OTT) service providers and application developers. CSP’s can use IoT to drive software-defined networking and network function visualization as well.

Both 5G and IoT see a lot of data moving across the network. And it is the capability to use this data appropriately and ingenuously that will help the telecom industry solve existing pain points and become future-ready.

Adapt Business Support Systems for the digital era

Telecom companies need to adapt their BSS for the digital era. They need to capably support the demanding and digitally native customer who wants a consistent and personalized experience delivered instantly. Of course, they must do so while considering all dimensions of the engagement lifecycle. Additionally, there is the challenge of addressing under-pressure traditional revenue sources, caused by the decline of voice services, data commoditization, and pressure from over-the-top (OTT) players.

To drive up profitability, telecom companies need to capably monetize all that 5G enables today and what it can tomorrow. Apart from connectivity to new applications and services, and to drive efficiencies such as Network slicing, private networks, partnerships, and IoT, BSS has to be more agile and secure.

Blockchain can help BSS become digital-era ready and help these internal systems become more collaborative and enable use cases that allow CSPs to eliminate intermediaries in inter-carrier settlements, prevent fraud during roaming and mobile number portability processes.

Fraud prevention

When there is IoT there is data. Unfortunately, where there is data, there is potential for fraud. Deloitte calculates the annual fraud costs for telcos at USD 40 billion.

Network security can be a challenge with the growing proliferation of IoT devices. With blockchain, every element in the IoT environment gets assigned with a unique identity that can be replicated across elements thereby making it harder to access by a third party.

Even if the network is compromised, blockchain manages to put in additional layer security that prevents attackers from using fraudulent ID within the system.

Drive compliance

Telecom operators have to enable technologies such as IoT and drive high connectivity. However, maintaining compliance with relevant laws and maintaining data and security regulations can be a challenge especially when there is a need for the international transfer of personal data.

CSP’s have to maintain compliance and can do so easily with a permissioned ledger system that the controlling party can leverage and place restrictions to prevent nodes from joining the network in certain locations. They can also use this ledger to ensure that the appropriate measures are in place with participants outside the region to ensure compliance

Overcome viability issues of IoT with Blockchain

Blockchain also makes IoT more viable and secure. Using blockchain, CSPs can provide highly secure peer-to-peer self-managed mesh networks employing a large number of nodes. Each of these nodes can be represented by single embedded IoT sensors and can verify every block within the blockchain.

Initially, they can create private networks with relatively low investment and then set up public networks once these are established thereby driving seamless connectivity and security. This is an essential consideration point especially with the growing interest in smart cities that run on IoT devices.

Improve digital asset transactions

CSP’s can use blockchain to implement micropayment-based business models for digital assets such as gift cards, loyalty points, purchase of music, mobile games, OTT, etc. This can drive revenues for CSPs by helping them enable the user and drive monetary transfer services, help them lower transaction costs, and also increase the speed of processing as compared to cash or debit/credit cards or cheques.

Enable smart contracting

CSP’s can capably automate their internal processes using blockchain and make processes such as billing, roaming, and supply chain management more streamlined, transparent, efficient, and error-free. Blockchain can automate the contracting process and eliminate the need for present transactions to undergo a clearinghouse to get approved.

Smart contracts enabled by blockchain guarantee the settlement between the participants and increases transparency to the end customer by routing the settlement from one operator’s Blockchain to another operator.

So, for example, when a subscriber on roaming dials out of the phone network this entire transaction (from the time the call connects up to its end) gets logged and saved on the blockchain network. The smart contract rule defines the charges and accordingly registers the payment. The complete transparency of this process ensures transaction integrity.

Our verdict is that IoT and blockchain will influence the telecom sector considerably. With leading telecom providers such as AT&T, Airtel, Deutsche Telecom, and more exploring blockchain and the maturing of IoT, we can expect faster adoption and deployment of blockchain to bring in the future of telecom. Is your telecom enterprise ready for blockchain?

A connected world has emerged from the stories of science-fiction to become reality today.

Thanks to the Internet of Things (IoT), we are opening the garage, adjusting the light and temperature at home even before reaching, measuring vital health parameters and alerting the doctors in case of an issue, and automatically alerting the grocery store for a refill of eggs before our stock runs out.

But the power of IoT stands to be further boosted with the coming of 5G.

Several studies have proved that the introduction of 5G will enable emerging technologies such as IoT to become a part of everyone’s life. It will not just lead to faster downloads, but will also play a crucial role in managing critical situations remotely, such as controlling heavy machinery to save a worker’s life or performing remote surgeries.

The two combined together could become a game-changer across several industries ranging from manufacturing, automotive, home appliances to healthcare. According to Gartner, 59% of companies are planning to use 5G to support IoT across their business.

It opens the door to several opportunities. But as with every technology, there are pros and cons to consider.

Let’s understand in detail the opportunities and the threats associated with IoT in the age of 5G.

Opportunities And Threats Of Using IoT With 5G

Opportunities

Faster data speed: The success of IoT is dependent on ready connectivity. Its performance is reliant upon how fast IoT devices, smartphones, etc. can communicate and transfer data with business applications and platforms. 5G could be 10 times faster than the current network speed. This means that IoT devices will be able to transfer data faster than before. There will be a significant improvement in how devices send and receive data. In industries such as healthcare and critical applications such as autonomous vehicles, faster data speed is crucial to save lives and get work done efficiently.

Low latency: An important characteristic of 5G is the low latency. Imagine a surgeon giving instructions to a team of doctors from a remote location while performing a surgery. Latency introduces lags, lags could cause a communication breakdown, and that could be a potential threat to the patient’s life. In an array of applications, data latency can prove to be disastrous. In others, like Augmented Reality apps or Gaming, latency could be a fundamental detriment to the app experience and usability. 5G is based on the foundation of ultra-reliable low latency communication (URLLC). It can process a large volume of data in real-time, which enables IoT devices to respond faster and avoid transmission delay. Industries and people can function efficiently without any disruption. For example, hospitals can now replace wired connections with low latency wireless 5G connections during surgery.

Better network stability: Imagine if a smart city that runs on connected devices faces connectivity issues. There will be complete mayhem in the city with control lost over critical functions such as traffic management. Network stability is not just a good-to-have feature; it is a must-have in many IoT use-cases. 5G offers a stable network and better coverage than other networks. Its stability is the primary reason behind the low latency. This is perfect for IoT devices that rely on a stable network to transfer real-time data to get tasks completed. It can improve the performance of IoT devices, and consumers will also benefit from it.

Threats

Security challenges: Although 5G has built-in security systems and encryptions that make it stronger, cyber experts believe that it could still be vulnerable to cyberattacks. One challenge is that security standards and protocols are still in the early stages of being widely understood and accepted. An AT&T cybersecurity study revealed that 39% of respondents are worried about the security of the connected devices in the network. They worry that connected devices could expose them to larger security threats. According to a 2019 Brookings report, this is because the network has moved from centralized; hardware-based switching to software-based, distributed routing. Hackers could gain control over the software managing the network and attack it. This eventually would make IoT devices vulnerable to attacks.

Privacy challenges: In our last blog, we discussed the challenges that are holding up the 5G wave. One of them we discussed was about privacy challenges. Consumer privacy could be compromised due to semantic information attacks, timing attacks, and boundary attacks that hit the subscriber’s location privacy. There is also a potential threat to the consumer’s data and identity. Considering how consumers take their data privacy seriously and as connected devices rely the most on data, such threats to privacy could discourage people from using IoT devices with a 5G network.

Other potential risks to mission-critical devices: As IoT’s market grows; the scope for security threat also increases. Innovative threats could emerge that don’t exist today. Recently, the FDA recalled half a million pacemakers because they were vulnerable to attacks. With more IoT devices getting connected to 5G networks, there is an increasing scope for hackers to attack the devices. They could manipulate the devices and create irreversible damage if not monitored and controlled periodically.

Conclusion

According to Statista, the number of IoT devices will rise to74 billionby 2025. While there are worries of security threats in using IoT devices with 5G, one cannot ignore the impact it will have on people and industries. IoT seems to be made for 5G. Both can come together to deliver innovative solutions across industries and for society.

What’s required is a combined effort by Mobile Network Operators (MNO) and companies that build IoT devices and solutions. Such a considered partnership can develop a shared security model where the company can take responsibility for the IoT devices, and the MNO looks after managing the network infrastructure and ensuring that it meets the 3GPP framework. This way, people and industries can use IoT devices freely without the fear of cyberattacks to unlock the potential.

The telecom industry has witnessed rapid development in recent years. It has ushered in a global era of connectivity. Whether it is the IoT, 5G, or Application-to-Person (A2P) messaging, the telecom industry has been responsible for simplifying communication and making it faster. The transition to wireless connectivity, implementation of 5G, and increased usage of IoT devices are just a few of the several advancements made by the industry in recent years. It’s fair to call the telecom sector the backbone of life and business worldwide.

No wonder the global telecom services market size was $1657 billion in 2020 and is expected to grow at a CAGR of 5.4% between 2021 and 2028.

However, the rapid transformation and innovation have also led to rising security concerns such as cyber risks, revenue leakage, and even espionage or security compromises in the industry.

What Are The Security Concerns That Worry The Telecom Industry?

Revenue losses

Telecom fraud is one of the leading reasons for revenue losses in the industry. According to a joint report published by Europol’s European Cybercrime Center and Trend Micro, telecom frauds lead to a revenue loss of $32.7 billion. This has negatively impacted operator revenue margins across the board. As telecom networks expand and more data gets exchanged through connected devices and users, telecom operators will have to find ways to counter these issues. Although new offerings such as 5G and IoT are laying the ground for ever more sophisticated ways to secure the network, hackers always find a way to breach the system and impact operations. Telecom operators must continuously audit their security framework and processes and establish ways to eliminate frauds and prevent revenue losses.

Data breaches

Recently, the telecom giant T-Mobile reported a security incident that compromised the data of 200,000 customers. A similar incident occurred early last year when Japan’s telecom company Nippon Telegraph & Telephone (NTT) reported that the data of 621 customers from one of their subsidiaries were stolen. The hackers had hacked the multiple security layers of their IT infrastructure to steal the data. Data breaches have become one of the common concerns for telecom operators. A 2020 Global Threat Intelligence Report stated that hackers have been using IoT devices as a common entry point for cyber-attacks. As more businesses and individuals continue to work from home, edge points grow and so does the vulnerability. Telecom operators will have to build robust security architecture to reduce data breaches. They must incorporate data encryption, tokenization, authorized access, and firewalls to safeguard their network infrastructure and prevent data breaches.

System outages

Unplanned network downtime can cost telecom operators $15 billion per year. Of course, it’s bad for the users too. Businesses and individuals are dependent on good internet and telephone connectivity for day-to-day operations. Hence, unplanned downtime impacts their work and affects the operator’s bottom line revenue. If severe outages occur frequently, the telecom operator will risk losing their reputation and customers. While there are many reasons behind unplanned system outages, one of the major causes is a system upgrade. The operators are unable to reconnect the network after an upgrade or change in infrastructure. Other reasons include – routing problems, network congestions, and operational error. Taking proactive measures, communicating any upcoming outages, and anticipating and solving the issue within the decided SLA are ways to counter these issues.

Malicious attacks

Recently, India recorded an 845% increase in cyber-attacks between October 2020 and March 2021. According to Check Point Software, 93% of such attacks occur because the users are lured into installing malicious apps, which compromises the enterprises’ network security. Weak network infrastructure has led to an increase in ransomware incidents. Social engineering, DDoS attacks are some other kinds of attacks that operators are witnessing right now. Auditing the network infrastructure regularly and fixing vulnerabilities will enable operators to safeguard the infrastructure from malicious attacks. Resilient infrastructure is the only way forward for telecom operators. It’s also time that operators build a security-focused culture within their organization and take proactive measures to prevent malicious attacks.

Privacy issues

Ever since the General Data Protection Regulation (GDPR) has come into existence, enterprises have become conscious of data privacy threats. The onus now lies with telecom operators to protect the subscribers’ privacy. In its whitepaper, Ericsson recommended that the first step towards safeguarding the privacy of subscribers is to include privacy at every stage of the product or service development and in operations. This will enable the operators to proactively protect the subscribers’ privacy rather than taking remedial actions. They need to embed privacy controls within the processes to give subscribers the confidence that their data is fully protected and aligned with the regulations.

Conclusion

As the industry advances, the incidents of security threats will keep increasing. Hence, there is no better time than now for telecom operators to find ways to combat the rising security concerns. Operators can use SMS and voice firewall solutions to safeguard the network from threats and vulnerabilities. They can also invest in fraud detection and security solutions such as access and identity management, content filtering, and perimeter protection to protect the networks from threats.

At Globe Teleservices, we offer end-to-end network security solutions to telecom operators. We offer:

• Gateway solutions with fraud management that detect and block frauds entering the network
• SMS firewalls to block illegal SMS traffic
• Direct routing that prevents A2P SMS grey routing
• Protection from SMS spamming, flooding, spoofing, phishing, and viruses

To know more about our security solutions, contact us.