Month: September 2023

Security Scares – 5 Stories in the News About Fraud and Risks in the Telecom World

The telecom industry is growing rapidly and becoming a pivotal enabler of the world’s progress. Various factors, like the advent of 5G, remote and hybrid work, rising demand for high-speed data services, etc., are now seen as integral to this growth. Of course, the use of IoT, AI, and edge computing has also catapulted the telecom industry to the forefront in the business innovation stakes.

According to Statista’s research, $1.5 trillion will be spent worldwide on telecom this year alone. While this shows the size and scale of the industry, some concerns remain persistent. Key among those are concerns about rising fraud in the telecom industry worldwide. In 2021, the telecom industry worldwide lost about $40 billion due to fraud.

Let’s find out how fraud in telecom industry has shocked companies, customers, and lawmakers and why a robust fraud management system in telecomis necessary to curb them.

Five Stories of Fraud in Telecom World

To better elucidate the impact of telecom fraud, here’s a rundown of the five security scares that plagued the telecom industry:

1. Why Vodafone Is Issuing Warning About Wangari Fraud

Wangari is a Japanese term that means one and cut. In this scam, the scammers call a targeted list of subscribers and hang up the phone before they answer. They usually call at a time when the subscriber is less likely active. When the subscriber calls back on that number, the call is re-routed to an international premium number, and they are charged for the call.

Owing to the growing number of Wangiri frauds, Vodafone recently released an official security memo, warning users to exercise caution and avoid returning calls to unknown numbers. They added that users who are not careful about such fraud in telecom would be left with a hefty bill without realizing it.

2. How SIM Box Fraud Cost Telecom Companies $3 Billion

A SIM box is a hardware device. It allows operators to manage SIM cards from different service providers and access GSM gateways located in different places. Operators usually use it to route Voice over Internet Protocol (VoIP) calls through local GSM networks. This is done to avoid paying international calling tariffs.

Recently, telecom providers have witnessed an increase in SIM Box fraud. In this fraud, international numbers pretend to be local numbers and cost telecom companies the international call fees. According to the Communications Fraud Control Association (CFCA), SIM Box fraud cost the telecom industry $3.11 billion in 2021.

SIM Box fraud has emerged as the topmost telecom fraud in recent years. Besides losing revenue, telecom companies also lose their reputation as end users suffer from poor service quality. As such, they need to improve telecom security to reduce such fraud.

3. Scammers Steal Bank Information in the Name of 5G SIM Upgrade

As customers mull over upgrading to 5G, telecom companies and state police departments in India are issuing warnings about 5G fraud. In this fraud, customers receive text messages with a link to upgrade their SIM card from 4G to 5G. When the customer clicks on the link, there is a risk of hackers hacking the phone and stealing personal and bank information.

According to police departments, there have been instances of accounts getting emptied due to the 5G SIM upgrade scam. Telecom companies and police departments have clarified that upgrading SIM cards to 5G is not necessary. The 5G connection will work on compatible smartphones with the old 4G SIM.

4. How Mobile Users Lost $58 Billion in 2023 Due to Robocalls

Popularized during COVID-19, robocalls are automated calls where a recorded voice speaks instead of a live person. Robocalls are typically used for selling products, sending reminders, or providing information. However, scammers are also using them to steal money or personal information from customers.

According to Juniper’s research, mobile users lose $58 billion worldwide due to scam calls like robocalls. The report predicts that by 2027, the losses will reach $70 billion globally. North America continues to be one of the most affected regions.

5. IRSF Losses Have Increased Six-Fold Over the Past Decade

International Revenue Share Fraud (IRSF) is a type of fraud where scammers use illegal ways to access an operator’s network. This allows them to perform illicit activities, such as:

  • Increasing the volume of international traffic to high-cost destinations with revenue-sharing agreements
  • Generating revenue by using complex pricing structures for international calls and SMS traffic

Recent studies show that IRSF losses have increased more than six-fold over the past decade. Such fraud can also lead to revenue leakage for telecom companies and leave customers unhappy due to unnecessary financial loss.

It’s critical that companies use telecom security solutions powered by Artificial Intelligence (AI) and Machine Learning (ML). They can help detect IRSF patterns early and curb them on time. Otherwise, companies will likely lose more revenue and customer trust in the future.

How Can Telecom Companies Combat These Frauds?

Fraud in telecom industry is not new. However, it has become more sophisticated and widespread in recent times, wiping out unsuspecting customers’ entire savings.

These frauds are not only impacting the revenue of telecom companies, but they are also at risk of losing customers. Trust between customers and telecom companies is eroding due to issues like:

  • Poor call quality
  • Identity theft
  • Overcharging
  • Charging for unused services

The only way to prevent such fraud is by using an anti-fraud solution. A traditional fraud detection system for telecom may no longer be able to detect and solve such sophisticated fraud. These systems are more reactive than proactive.

What companies need is a modern solution that:

  • Uses AI and ML to detect fraud and anomalies in real-time
  • Makes proactive decisions to curb the identified anomalies

At Globe Teleservices, we have built a robust fraud detection solution called Armour Firewall Solution to safeguard customers from fraud like:

  • Wangari attacks
  • SIM farming
  • Robocalling
  • IRSF
  • International outbound call fraud

The solution uses AI/ML algorithms to detect such emerging threats and empower telecom companies to stop them before they escalate further. To know more about Armour Firewall Solution and other fraud detection systems in the telecom industry, contact us. We will help you prevent fraud, save your reputation, and improve the trust between you and your customers.

The Data Domain – Why Modern Telecom Companies Need Data Products

With advancements in 5G technology and the increasing use of smartphones, telecom companies are looking to the future with renewed hope. The global shift to remote working has further contributed to the growth of the industry, with reports suggesting the global telecom market to reach $3.4 trillion by 2025. While this growth is encouraging – and seems sustainable – it also brings about its own challenges, like causing a massive amount of data to flow through telecom networks.

The Data Imperative in the Telecom Industry

Like businesses across other sectors, telecom companies are also increasingly relying on data to run their business and enhance profitability. They need to harness the power hidden in their data to provide elevated customer experiences, an emerging and ever-present challenge for telecom companies. Telecom companies are also waking up to the need to expand their service offerings beyond merely providing communication services. They recognize that they must make the most of the customer data at their disposal to enable a new generation of revenue opportunities by becoming digital service providers.

So, why do telcos need to capitalize on growing volumes of data?

Let’s look at all the things data helps telecom companies achieve:

  • Optimize networks: Live data analysis can enable telecom companies to get insight into performance issues and take steps to proactively resolve them. Active network data monitoring helps optimize network potential, reduce congestion, and achieve strategic goals amid increasing scale and complexity.
  • Enhance customer experience: Active data monitoring enables telecom companies to identify when and where to expand capacity for enhanced customer experience.
  • Improve security: Constant data analysis enables telecom companies to identify security gaps and loopholes, enabling prompt action to prevent fraud and theft.
  • Enable and ensure compliance: With the telecom sector exposed to regular scrutiny, the right approach to data can also aid companies in highlighting compliance gaps and bottlenecks. This can help them make the right decisions and adhere to growing regulations in a rapidly-changing environment.

But if companies want to act on this data, they need to find a way to rapidly store, process, and extract useful insights from the available data and use them to make critical business decisions like how to personalize offerings to drive customer engagement, retention, and loyalty. And the best way to do this is by investing in the right data products.

What This Means for Telecom Companies

Leveraging data to make intelligent business decisions and driving the business to the pinnacle of success is on every telco’s mind. But wanting to make the most of data is not just about adopting generic big data analytics solutions. Telecom companies have to relook at their existing tech stack and invest in data products that have been curated keeping the precise nuances of the sector in mind.

Designing and implementing forward-thinking telecommunication solutions can enable companies to exploit data-driven technology products that keep business needs at the centre of development. By uncovering detailed insights into every aspect of the business, telcos can deliver with speed, respond with agility, and drive competitive advantage. For instance, the right data products can enable telecom companies to gain insights into network capacity, effectively planning for trunk and route management.

They can also identify fraudulent activities in the network like revenue share fraud, roaming fraud, robocalling, VoIP & SIP fraud, and more.

Telecom-specific data products ensure seamless integration with the existing business ecosystem helping companies achieve the best results.

How To Build the Right Data Products

Despite various market tools, standard solutions can’t address the telecom industry’s unique challenges effectively due to its specific requirements.

To overcome issues around cybersecurity, network congestion, and complex operational processes, companies need highly tailored data products that can cater to telecom-specific needs. These solutions leverage human intelligence with Artificial Intelligence (AI) to enable enterprises to streamline tasks across fraud detection, network congestion, and revenue assurance.

If you want to build such products, you need to:

  • Make the most of AI-based analytical frameworks to boost confidence in the application of data-driven actions and avoid human errors.
  • Invest in the right skillsets across different profiles to develop and deploy robust data analytics programs using a low-code AI orchestration workbench.
  • Look at ways to complement existing technology systems and implement scalable solutions to optimize ROI.
  • Utilize human intelligence in tandem with AI to improve real-time monitoring, making it adaptable to future changes in business variables.

The experts at our group company GTS Tech Labs have been curating highly-tailored data products for the telecom industry. An example is the advanced product – Grentor, enabling network providers to access real-time data and gain insights on revenue reconciliation, fraud, telecom traffic, and more. It delivers interactive dashboards allowing companies to identify frauds in the network. It can also be used to track and analyze consumers, monitor network usage, and uncover ways to drive better customer experiences.

Final Thoughts

As telecommunication companies experience unprecedented growth, there is a lot they can achieve by building the right data products. By combining AI with human intelligence and low-code technologies, telcos can get all the insights they need to make the right business decisions.

It’s time to invest in the right data products today to predict your peak network usage periods, uncover ways to reduce congestion, improve demand forecasting, plan for extra capacity, and constantly act on live data to drive profitability and prevent customer churn.

Talk to us to understand the next steps in how to go about doing so.

Fueling Telecom’s Success with Private Wireless Networks (Trends, Opportunities, & Challenges in 2023)

Private networks continue to grow in adoption and popularity around the globe. In fact, the research firm Analysys Mason has predicted that the number of private wireless networks, including 5G and LTE, will grow to over 20,000 by 2026. They also expect that enterprises will spend around $5 billion on these networks.

While stressing the reasons for this growth, Ashutosh Agrawal, CMD at Globe Teleservices, explains that much of the “impetus seems to be coming from expectations of the imminent arrival of 5G.” He further adds that “there are also many application scenarios opening up across smart manufacturing, smart cities, automated supply chains, and so on.” Since private wireless networks can provide the requisite low latency, high speed, and high availability to accommodate such applications, they’re gaining utter prominence.

So, the question transpires – What opportunity do private wireless networks offer to telecom companies, and what challenges must they overcome? Let’s discuss.

Private Wireless Networks – Latest trends in 2023

In 2022, telecom operators added around 455 million 5G connections. Globally, wireless 5G connections grew by 76% in 2022 to reach 1.05 billion.

There’s no doubt that the spread of 5G technology has been the driving force for private wireless networks. Additionally, enterprises are now relying more on advanced data analytics, which requires a robust wireless network to handle the massive volumes of data.

Considering all these facets, here are some trends to look forward to:

The telecom industry isn’t a lot different when it comes to the need to deliver excellent CX. A study revealed that 70% of customers consider customer experience as a pivotal factor in choosing a telecoms provider. This emphasizes the telecom sector’s urgent need to prioritize investments in customer experience and put it at the center of the business strategy.

To embrace the future, telcos must undertake comprehensive transformations that place customers at the core of their operations.

  • The migration of private networks from 4G to 5G bandwidth
  • The adoption of full production deployment for both 4G/LTE and 5G applications and infrastructure
  • The growth of private networks for public venues, including hotels, airports, and stadiums
  • The integration or convergence of private 4G/5G networks with Wi-Fi-driven enterprises
Private Wireless Networks – How Telecom Operators Can Leverage the Opportunity

Ashutosh states that telecom companies have the “opportunity to monetize their infrastructure while building deeper engagements with super-user enterprises.” For instance, private wireless networks can bring the next-level connectivity for challenging industrial sites. Industrial firms can harness the power of technological interventions like digital twins, robotics, artificial intelligence, and the Industrial Internet of Things (IIoT).

In particular, the fast-growing IIoT ecosystem on private wireless networks is creating new opportunities for communication service providers (CSPs) and utility companies. For example, connected smart grids on 4G- and 5G-enabled networks can deliver consistent service to millions of customers.

That said, here are some of the possible use cases or opportunities for telecom companies:

  1. Manufacturing: Private wireless networks can help create smart factories where real-time data insights can drive reliability and efficiency.
  2. Education: These networks can enable students and teachers to interact remotely from a “virtual” classroom.
  3. Supply Chain: 5G-based private wireless network, along with IoT technology, can automate the factory, warehouse, and transportation environment.
  4. Smart City: A private wireless network in smart cities offers multiple benefits over public networks, including better security, flexibility, and infrastructure control.

A future-ready private wireless network requires enterprises to connect every device, sensor, and user. With complete data consolidation, private networks can augment the business value of data through analytics.

Challenges in Private Wireless Networks

Despite the benefits and opportunities, private wireless networks have their share of implementation challenges. Ashutosh outlines that telecom operators need to develop capabilities for “more flexible infrastructure and management.” Additionally, they need technical skills in:

  • Managing Agile deployments
  • Network integration
  • Delivering effective customer support
  • Managing and monitoring private networks

As wireless connectivity continues to grow, enterprise users expect it to be always up and running. The reality is much different. Wireless networks need to function optimally in facilities with high disturbance – for example, factories and mining sites. Unreliable connections can severely disrupt business operations, causing productivity-related issues.

Other challenges associated with a private wireless network include extreme weather conditions and bandwidth overload. Companies also face the challenge of providing fast and consistent network coverage over large areas, requiring a greater number of Wi-Fi access points.

High costs are also a significant challenge for enterprises implementing a private 5G network. These networks incur a substantial upfront cost for the infrastructure, maintenance, and operations. Enterprises need to invest in radio equipment, network accessories, and the backend infrastructure. Due to the high costs, private networks are out of the reach of smaller enterprises.

Another significant obstacle is to integrate the private network with the existing infrastructure and legacy systems. This means integrating the network with the existing applications, databases, and systems. Private 5G networks must also integrate with public networks, IoT devices, and Wi-Fi connections.

The Significant Role of Data Analytics in Private Wireless Networks

Data analytics is integral to the private wireless network space. This is understandable since telecom providers constantly need to improve their service delivery and infrastructure management capabilities.

Private wireless networks depend on data analytics to collect data from various network connections.

The analytics capabilities provide valuable insights into network operations and are useful across use cases, including the following:

  • Computing and predicting network load levels
  • Predicting the service experience for an application or user group
  • Predicting network load analytics for a specific network function
  • Measuring congestion information for a specific location

The data analytics function works in favor of telecom companies, as they leverage massive market opportunities associated with private wireless networks.

Cash in on these business opportunities with Globe Teleservices. We enable telecom service providers to manage their deployments and integrations. Want to know more? Get in touch with us today!

 

The Future of Customer Experience in the Telecom Industry

Customer experience has emerged as a defining factor in business success, shaped by the trailblazing efforts of digital giants like Amazon, Apple, Netflix, and Uber. These industry disruptors have set new standards with their seamless and personalized interactions, raising customer expectations to new heights.

A recent survey revealed that 72% of customers  switch brands because of poor customer experience (CX). Likewise, a 2022 survey found that 86% of customers will turn to competitors against the brand they trust after just two instances of poor CX.

The telecom industry isn’t a lot different when it comes to the need to deliver excellent CX. A study revealed that 70% of customersconsider customer experience as a pivotal factor in choosing a telecoms provider. This emphasizes the telecom sector’s urgent need to prioritize investments in customer experience and put it at the center of the business strategy.

To embrace the future, telcos must undertake comprehensive transformations that place customers at the core of their operations.

Latest Trends in Customer Experience in the Telecom Sector

“Mobile networks will be up to 100 times faster and have 1,000 times the capacity than we experience today,” outlines PwC while emphasizing the prominence of the 5G networks. For sure, the growth in the telecom sector is being underpinned by rapid technological evolution. But what impact can these changes and trends have on the consumer experience that telecoms facilitate? Let’s discuss.

Increased Focus on End-to-End Customer Experience Improvement

For successful end-to-end customer experience transformation in telecom, evaluating both short-term and long-term benefits is vital. It’s also important to refine commercial models. When we talk about “commercial models,” we’re looking at the metrics that telcos usually use for defining the success of their initiatives. These might include metrics such as weighted average cost of capital (WACC).

However, the trend now is to focus more on the customer experience aspect of things. The telecom sector is poised to make advancements in predictive capabilities for ensuring proactive issue resolution, personalized customer interactions, and overall higher ROI.

But for this to happen, there needs to be a shift in how telcos view their success. If they quantify it against the traditional metrics, they might miss out on the long-term value that customer focused initiatives can accrue.

AI for Customer Service

Telecom companies are adopting AI-powered chatbots to automatically address customer queries and issues, freeing human agents for complex tasks. For instance, an AI-driven virtual assistant can handle billing, service plans, and technical support questions. No surprise that the global AI in telecommunications market is projected to reach $19.17 billion by 2029, growing at a CAGR of 40.6% between 2023 and 2029.

Telcos must also pioneer the application of Natural Language Processing (NLP) and voice-based customer care solutions to nurture more contextual interactions. This is certainly possible today, especially with generative AI solutions coming to the fore. The AI mix can help telcos deliver unparalleled customer service — all while catering to regions in their local languages and accommodating a very high frequency of requests.

This also paves the way for opportunities to adhere to the omnichannel shift. Today, customers demand consistent service across channels. With the help of data analytics and AI, telcos can ensure smooth transitions between channels while maintaining customer context. The result? Better personalization, increased loyalty, improved CX.

AI for Network Optimization

According to Nokia, networks will become exceptionally complex with the advent of 5G, growing by a whopping 73% in the next five years.

Favorably, implementing AI-powered self-optimizing networks (SONs) enables automatic network quality optimization based on traffic data, region, and time zone. This optimization based on AI technology can refine network resources and reduce operational costs.

Utilizing AI/ML in IoT for improving network performance, maintaining service levels, and protecting data privacy is also gaining momentum. AI algorithms can also analyze vast network data to:

  • Provide real-time insights into performance and issue resolution
  • Enhance network reliability and customer satisfaction
The 5G-Led Experiences

By 2025, 5G networks are projected to serve one-third of the world’s population. 5G promises to deliver much faster speeds, lower latency, and increased bandwidth than previous generations of cellular networks. This paves the way for reliable connections and spells the advent of more connected and personalized experiences.

To succeed in the 5G era, telecom providers need to be cognizant of the value of the entire distribution channel, Business Support System (BSS) platforms, etc. Collaborating with startups, technology companies, Communications Service Providers (CSPs), etc., can help curate innovative 5G product offerings for better CX.

How Can Telecom Providers Prepare for This Future?

The telecom sector is undergoing a major transformation, and customer expectations are rising. To stay competitive, telecom providers need to prepare for this future by:

Powering Data Analytics Initiatives

Data analytics is essential for telecom providers to understand their consumer needs. By collecting and analyzing data, telecom providers can identify trends, patterns, and insights that can be used to improve the CX. For example, data analytics can be used to:

  • Identify customer pain points: By understanding customers’ challenges, telecom providers can develop solutions to improve their experience. For example, customers may have complaints about network coverage. The data analytics team can use historical call records to identify areas with poor network strength.
  • Optimize network performance: By analyzing data about network usage, telecoms can identify areas where the network can be optimized to improve performance.
  • Personalize the customer experience: McKinsey’s research outlines that organizations that excel at personalizing CX generate 40% higher revenue. However, the consulting giant also mentions how only 5% of telcos capably unlock the potential of data-driven personalization. It’s imperative that telecom providers monetize their data assets to ensure this percentage goes up. After all, their personalization initiatives can help retain customers, build loyalty, and improve CX.
Partnering with a Telecom Solutions Provider

The future of customer experience in the telecom industry is bright, but it requires telecom providers to embrace the latest trends and partner with a telecom solutions provider that can help them implement the requisite technologies.

For example, at GlobeTeleservices, we help telecom companies implement anti-fraud solutions and drive seamless connectivity with uninterrupted voice solutions. We further help telcos realize higher ROIs via the use of the cloud. The idea is to help telecom companies deliver a superior CX and alleviate challenges related to service disruptions. Contact us to learn more about how we can help.

 

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