Month: November 2021

When it comes to the world of messaging, we might think that the ubiquitous messaging apps have overtaken SMS in the race for adoption. However, while person-to-person SMS messaging is reducing, when it comes to business messaging, A2P messaging, and M2M, SMS is growing. The A2P market, for example, is all set to grow from USD 62.1 billion in 2020 to USD 72.8 billion by 2025.

Telecom operators, however, are under significant pressure to improve business opportunities, increase their customer base, and improve brand recognition and credibility in the face of rising competition from OTT platforms.

Coming to their rescue are M2M (Machine to Machine), Big Data, and AI – transformative technologies that hold the promise to change the world of business messaging.

Conversations regarding messaging and the telecom sector are incomplete without speaking of 5G. In this context, most of the focus on 5G is over super-sized networks and powerful applications. With 5G, telecom operators also can identify ways to leverage the connectivity to drive enriching customer interactions keeping business messaging in the mix for the growing market in M2M communication.

While 5G is still “on the way”, let’s focus on technologies such as M2M, Big Data, and AI in the current ecosystem and evaluate how they can make business messaging more impactful to create customer stickiness. These technologies can also solve some of the challenges of increasing grey route areas and greater security.

Improved delivery success rate

Over the last few years, technologies such as M2M have made the world of text messaging suitable for the business environment. Transformative business applications like Industrial Internet of Things, Smart Manufacturing, and Industry 4.0 were loath to depend on telecom networks. In the initial days, delivery success rates were poor and influenced by the devices. If the device was of a different carrier, then message delivery failure was highly likely. Back then, text messages in such business-critical contexts suffered due to a reputation for uncertainty.

Today, however, M2M communication and robust cellular networks make a successful partnership to drive impactful and timely business messaging. High-quality tier-1 routes can ensure maximum speed and deliverability and also provide the flexibility to schedule bulk message delivery to stay on top of the customer’s mind. Businesses can also make messaging more targeted and timely and make the overall customer experience more seamless and efficient with M2M technology.

Better customer interactions

A continuous focus on improving customer interactions is key to thriving in a challenging global business environment. Organizations have been using A2P messaging to improve better customer engagement. However, given that disruption is a constant, learning to listen closely to what the customer could want or is indicating is a skill that will guarantee customer stickiness.

Customers want intuitive experiences and, in a customer-first economy, developing the capability to identify what the customer wants, both explicitly and implicitly is important. Technologies such as Big Data and AI get to work here and deliver impact in conjunction with M2M to improve customer experiences.

Businesses and operators can offer products and value-added services based on big data analytics-driven by data generated from location tags, credit tags to partners, and interest tags. Enabling differentiated services according to different types of traffic, creating new business opportunities by wholesaling traffic, sponsored services, or premium delivery capably, and service offerings such as smart bundling, location-based packages, etc. become easier, as do the opportunities to drive profitability.
Technologies such as big data and AI also help telcos attract and develop the right partnerships and give them insights into how to capably bridge the gap between the current and expected outcomes by enabling better, more personalized, and contextual interactions.

Improved security

Research shows that between 2020-2024, revenue leakage to grey routes remains unacceptably high, with a cumulative loss of $37.1 billion, or an annual average leakage of $7.69 billion. Identifying next-gen solutions to make routes more secure to prevent revenue leakage becomes essential given the significant impact of grey route areas on telcos.

Integrating traditional messaging firewalls with big data and advanced analytics can capably detect a wider portfolio of fraudulent patterns. With the right insights in place using technologies such as AI, telcos can also reduce the time between fraud detection and blocking rules implementations.

In Conclusion

The disruptive power of M2M, Big Data, and AI have been at work across industries and have been used to drive elevated customer experiences, offer greater personalization, improve security, and enhance decision-making capabilities to drive greater profitability. These technologies now show that they have the power to disrupt and elevate the business messaging landscape. They can enable more targeted, secure, and contextual business messaging that drives better outcomes and positively impacts the bottom line.

Gen Next for the telecom sector lurks in the wings worldwide.

The fifth-generation (5G) telecommunications network promises to radically revolutionize the digital world by enabling real-time connectivity on a whole new level. We expect incredible new speeds, significantly reduced latency, and enormous bandwidths.
Extraordinary opportunities like smart cities, telemedicine, autonomous vehicles, edge IoT devices, intelligent electric grids, and augmented reality are on offer. This is why it is no surprise that businesses and governments are considering enormous investments in 5G technology.

But in the middle of the excitement of all this technological potential, it’s possible that substantial new threats are being overlooked.

The real-life security concerns created by 5G are already becoming visible. In 2019, at the Black Hat Security conference, researchers stated issues in 5G security, which allowed them to access user locations and carry out cyber-attacks on devices. Furthermore, researchers at the University Lowa and the University of Purdue detailed 11 design challenges in 5G protocols that could expose user locations, downgrade services to old mobile data networks, or even track when one makes calls, texts, or browse the internet.

5G will impose new security challenges for businesses and new opportunities for cyber-attackers. So, what are the security risks that we are already seeing? What risks do we foresee rising with the proliferation of 5G? Are these holding up the arrival of the shining new technology?

Let us take a look.

• Challenges in SDN and NFV

SDN helps to centralize the network control platforms and allows programmability in communication networks. But these two remarkable features also create opportunities for hacking the system. For instance, the centralized control could encourage DoS attacks and expose the critical Application Programming Interfaces (APIs) to unintended software. It’s possible this may cause the entire network to go down. The centralization of network control makes the controller a bottleneck for the whole of the network due to saturation attacks. Given that most of the network functions can be performed as SDN applications, malicious applications, if given access, can spread chaos across the network.

While NFV is incredibly important for future communication networks, it has some fundamental security challenges like confidentiality, integrity, and authenticity. The present NFV platforms do not comprehensively cater to security and isolation to virtualized telecommunication services. One of the critical challenges persistent to the usage of NFV in mobile networks is the dynamic nature of Virtual Network Functions (VNFs)that leads to configuration errors and thus security lapses. However, the more significant challenge that needs immediate attention is that the entire network can be compromised if the hypervisor is hijacked.

• Challenges in Communication Channels

5G will enable more complex ecosystems, for instance, including drones and air traffic control, cloud-driven virtual reality, autonomous vehicles, augmented reality, smart factories, cloud-driven robots, transportation, and telemedicine. These kinds of applications need secure communication systems that facilitate more frequent authentication and exchange of more sensitive data. Additionally, several new players, like public service providers, MNOs, and cloud operators, will engage with these services.

Before the emergence of 5G networks, mobile networks owned dedicated communication channels based on GTP and IPsec tunnels. The communication interfaces like X2, S1, S6, S7, which are only utilized in these mobile networks, demand a remarkable level of expertise to attack. However, SDN-based 5G networks won’t have dedicated interfaces like these. Instead they will have common SDN interfaces. The openness of these interfaces could escalate the possible number of attackers. In the present SDN system, the channels are safeguarded using TLS (Transport Layer Security)/ SSL (Secure Sockets Layer) sessions. However, TLS/SSL sessions are known to be susceptible to IP layer attacks, SDN Scanner attacks, and often lack robust authentication mechanisms.

• Privacy Challenges

From the customer’s perspective, substantial privacy concerns could arise focused on their data, location, and identity. It’s true that application developers or companies seldom state how the data is stored and for what purposes it will be utilized. Cyber threats like semantic information attacks, timing attacks, and boundary attacks chiefly hit the subscribers’ location privacy. At the physical layer level, location privacy could possibly be compromised by access point selection algorithms in 5G mobile networks. International Mobile Subscriber Identity (IMSI) catching attacks can be leveraged to disclose a subscriber’s identity by capturing the IMSI of the subscriber’s User Equipment (UE). These sorts of cyber-attacks can also be carried out by setting up a fake base station.

Furthermore, 5G networks also encourage the growth of various players like network infrastructure providers, Virtual MNOs, and Communication Service Providers (CSPs). All these players are likely to have different priorities for security and privacy. The mismatch of privacy policies among these players is sure to be a concern in the 5G network. In previous generations, mobile operators possessed direct access and control of all the system components. However, 5G mobile operators will lose the systems’ full control as they may come to depend on new players like the CSPs. Thus, 5G operators could be deprived of the full governance of security and privacy. The norm is that user and data privacy are challenged more in environments where the same infrastructure is shared among various players, for example, VMNOs and other competitors.

Moreover, the 5G network doesn’t have many physical boundaries as it utilizes cloud-based data storage and NFV. Thus, 5G operators may have less direct control of the data stored in cloud environments. As different service providers, companies, and even countries have different data privacy mechanisms depending upon their preferred context, privacy could be at risk depending on location.

• Challenges in Mobile Cloud

Because the cloud computing systems contain various resources shared internally amongst users, there is the possibility of a user spreading malicious traffic to pull down the performance of the entire system, consume more resources, or secretly access the resources of other users. Likewise, in multi-tenant cloud networks, where tenants manage their own control logic, interactions can trigger conflicts in the network configurations. Mobile Cloud Computing (MCC) transfers the concepts of cloud computing into the 5G ecosystems. This could introduce several security vulnerabilities that could surface with the architectural and infrastructural modifications in 5G. The open architecture of Mobile Cloud Computing and the versatility of mobile terminals develop loopholes via which cyber attackers could launch threats and breach privacy in mobile clouds.

MCC threats can be classified as front-end, back-end, and network-based mobile security threats. The front-end of the MCC architecture refers to the client platform, which comprises the mobile terminal on which the applications and interfaces needed to access the cloud facilities operate. The threat landscape in this part may range from physical threats, where mobile devices and other integrated hardware components are primary targets, to application-based risks, where malware, spyware, and other malicious software are leveraged by attackers to disturb user applications or gather critical user information. The back-end platform comprises the cloud servers, data storage systems, virtual machines, hypervisor, and protocols needed to facilitate cloud services. On this platform, security threats chiefly target mobile cloud servers. Network-based mobile security threats are aimed towards the Radio Access Technologies (RATs) that interface mobile devices to the cloud. Cyber-attacks in this group include Wi-Fi sniffing, DoS attacks, and session hijacking.

Bottom line

There’s little doubt that 5G is all set to become the heart of the global digital economy in the upcoming years. While 5G will undoubtedly bring in business benefits, only meticulous planning and preparation can nullify the potential security challenges. It’s true that comprehensive security protocols and standards are only evolving in the space. That apart, as technologies like IoT evolve, even more complexities are likely to be unearthed. Touching upon those may be beyond the ambit of this blog but stay tuned for more on that important aspect.

In essence, it would seem that over-committing on security could become a critical aspect of a successful 5G service strategy. That could be the most crucial component of the 5G story.

Ever since the first transmission via ARPANET occurred in 1969, the internet has grown into such significance in our daily lives that it is being often referred to as one of the basic necessities of life alongside food, clean air, and water. Today, everything from mobile phones to the family microwave is connected to the internet and transmits data continuously. The COVID 19 pandemic also accelerated the growth of cloud computing wherein more people started to use cloud-based services leading to further internet congestion.

Working tirelessly in the background to facilitate this seamless transmission and exchange of data are IP networks that help data move from source to the correct destination.

However, with the present explosive growth of internet-enabled services and use cases, the challenge for the telecom companies and mobile service providers is the growing unease that traditional IP networks will be able to handle the volume gracefully.

It is estimated that by 2025, there will be over 100 billion connected points globally via the internet. Telecommunication service providers will be finding it hard to manage seamless traffic with their existing IP networks when such massive surges occur.

The need for a solution to manage the explosive growth of internet traffic is a growing concern globally and an answer seems to have emerged in the form of Intelligent IP Networks.

In simple terms, Intelligent IP Networks are networks that have integrated AI-based intelligence to identify the numerous services that will be using the allotted traffic channels and optimize interfaces, and network resources in accordance with the consumption trends. Intelligent IP networks are able to autonomously manage scalability within their ecosystem and set the stage for always-on experiences for network connectivity.

Here are 5 reasons why Intelligent IP networks are being fast adopted by global telecom companies, mobile operators, and carriers:

Exponential Scalability

With intelligent packet routing, service, and bandwidth optimization, Intelligent IP networks will allow for rapid scalability of network traffic. With 5G slowly promising to become mainstream in several global markets, the scale at which devices will connect to the internet will increase. There will be unprecedented volumes of internet data transmission that will occur in the 5G era and traditional IP networks will not be able to dynamically scale up to meet the requirements. Intelligent IP networks will offer highly flexible links for enabling faster customer experiences via the internet.

Growth of Cloud Computing

Did you know that nearly85%of all enterprise applications are cloud-based? Additionally, nearly every consumer sector is being disrupted by cloud services that master the art of offering services on-demand at a lower cost when compared to established business models. Traditional IP networks will not be able to factor in the huge and dynamic needs of today’s cloud services. From rapid scaling to pro-active availability, the challenges posed by growing cloud adoption for carriers are immense.

Personalized Optimization of Bandwidth

Intelligent IP networks allow carriers to offer guaranteed and personalized bandwidth experiences to their customers as they operate with principles such as sliced bandwidth isolation. This will allow them to adjust bandwidth allocation in a highly flexible manner and deliver custom solutions to a large number of subscribers simultaneously.

Autonomous Operations

Unlike traditional IP networks, Intelligent IP networks do not need manual intervention for deployment. Hence, they can be conveniently used for dynamic services that run on modern-day cloud infrastructure. They do not need manual provisioning and can facilitate rapid responses to help with faster adjustment of services. Also, they have intelligent AI-powered fault analytics and rectification features that allow them to heal on their own in most cases. Traditional IP networks would require disruptive shutdowns and time-consuming manual interventions to rectify faults which will ultimately result in the unavailability of the network for end consumers frequently. Today, when digital services are at a peak, such network connectivity issues can impact the reputation of the carrier severely.

Better Governance

Intelligent IP networks offer simpler and better governance mechanisms for carriers. Being self-driven and intelligently monitored continuously, these networks are most suitable for secure connections that are needed for today’s high-profile digital economy. They can enforce governance policies and protocols more efficiently. The AI algorithms can ensure that no biased network configuration decisions come about. This will result in a better experience for all customers irrespective of the regions in which they are located.

Network providers and carriers can become true enablers of digital transformation across all markets they operate in by integrating Intelligent IP networks into their infrastructure strategies. This is the way forward to ensure that the digital economy progresses and makes its impact felt in even the most remote areas and markets. Given that, these Intelligent IP networks can turn into the foundation for the growth of digital penetration and help businesses build more powerful services on the cloud to ensure consumers get “always-on” accessibility to their services.

Communications service providers (CSPs) worldwide are battling a fast-evolving landscape of stagnating revenues from traditional services, growing customer expectations, and cut-throat competition from agile and well-funded OTT entrants. This resultant tightening of revenue and cost squeeze is motivating CSPs to seek new strategies to cut costs and reignite growth.

It could be said that several CSPs are surviving by incrementally improving their core business. But to kick-start sustainable growth and thrive in the digital age, it may be necessary to pivot to some other high-potential areas.

According to PwC, 5G will enable $13.2 trillion of global economic output by 2035. The coming 15 years are predicted to deliver an essential shift in how we live, work, and relate to one another. And the COVID-19 pandemic has only accelerated the transformation. For consumers, this will mean faster data speeds and universal high-speed access through services such as fixed-mobile broadband. These opportunities hold some growth potential for CSPs.

But the great news is that CSPs have immense opportunities to reinvent themselves for the new age by transforming themselves into Digital Service Providers (DSPs).

A DSP is a service provider that has advanced from offering just the exclusive telecom services to offering broadband access, content, services, and mobile apps to its consumers.

How can CSPs make a shift to being DSPs?

Growing as a DSP means putting customers at the heart of all initiatives. Most telcos visualize the customer experience as a series of touchpoints – discrete interactions between the customer and various parts of the business, like product customer service, sales, and marketing. However, a customer’s whole experience is really the big picture to focus on.

Only by considering a customer’s entire journey from beginning to end can telcos genuinely comprehend how to improve their services. What would a perfect journey feel like for the customer? What processes would enable that? How would they interconnect with social, mobile, and cloud technologies?

The objective is not to digitize multiple elements but to deliver a superior holistic customer experience. Let’s see how could telcos achieve this:

Telecom Analytics – Providing Actionable Insights for Enhancing Customer Experience

Leveraging all the data sources, internal and external, can facilitate telcos to get a 360 customer view and their requirements. The data-driven method will help them stand apart from their competition with targeted, personalized, and high-value services.

Network operators can leverage analytics to reduce customer churn, make superior marketing-spend decisions, enhance collections, and improve network design. For example, customers at risk of attrition can be recognized even before considering doing so, facilitating telcos to target retention efforts, trim spending, and maximize impact. Also, telcos can improve their marketing spending by leveraging advanced analytics to divine acquisition and retention triggers at granular levels of advertising channels instead of depending on predefined percentages or instinct to assign ad budgets. In collections, telcos can even use analytics to identify customers risking default and improve outreach for those worth retaining.

Digital Advertising – Identifying the Growth Engine

Digital advertising spending is powered by the exponential growth in the consumption of online content, mobile apps, and video. Advancements in data-driven audience analytics tied to the extensive adoption of automated advertising trading platforms enable advertisers and publishers to make real-time decisions to drive better performance of marketing campaigns.
Telcos must tap into the growth opportunities offered by digital advertising. There is an opportunity here to diversify their revenue base by becoming a part of promising high-growth digital business models. Joining the digital advertising ecosystem as impactful ad delivery channels empower telcos to grow beyond their core services and geographical reach. Advertising can become a revenue engine for telcos because of the available opportunity to monetize valuable customer data. Telcos can power content innovation, personalization, conversion, and long-term sustainability.
Telcos can place their validated customer data and behavior-centered analytics as a means to distinguish and provide added value to both advertisers and publishers. They can marry premium content with customer data to power advertising sales. Telcos can also profit by capitalizing on open-architecture advertising platforms and becoming enablers for businesses, providers, and other ecosystem participants. Advertising revenues can be leveraged to fund free new OTT services, driving customer loyalty. Telcos also can transform the competitive landscape of digital advertising by creating horizontal data and advertising technology partnerships across geographic boundaries.

Digitizing CRM

Digital technologies have made it simpler than ever for consumers to engage with businesses, yet tougher for businesses to track, manage, and enrich those interactions. The exponential rise in multichannel access builds a case for impactful customer-relationship management (CRM) systems—not just to track consumers’ digital footprints but also to decrease costs, improve consumer satisfaction, and enhance brand advocacy and differentiation. Digital CRM can help telecom operators accomplish greater cost efficiency and consumer satisfaction.

Utilizing AI-driven chatbots, online forums, social media channels, and knowledge-bases of frequently asked questions, for example, costs the average telecom company less than the typical call center, while providing customers with a convenient, accessible source for answers and advice.

The Bottom Line

It is the need of the hour for CSPs to evolve beyond legacy systems and reshape their business models to stay significant and profitable. However, the road to becoming a digital service provider from a communication service provider is laden with growing challenges. OTT players with their transformative technology-powered platform-based business models will put CSPs under immense pressure. CSPs will have to respond by introducing innovative services, in areas like mobile money, machine-to-machine services. Forming a sustainable partner ecosystem by catering to data as a service and launching alternate monetization avenues will also help enhance revenues and allow the telcos to maintain a competitive edge.

Most CSPs still have a way to go before their DSP transformation is accomplished. But as key enablers of our connected world, they’re in a critical position to cash in on the digital economy’s flourishing monetization opportunities.