April 2024 | Globe Teleservice

The Rising African Digital Economy And The Role Of Telecom Players

For long, the African continent has not been included in the so-called growth engines that have been credited with driving progress. However, the tide has turned. Over the last few years, the region has finally found a true enabler of growth – digitalization. Africa is witnessing a rapid adoption of digital services in all areas. From banking to education, eCommerce, and entertainment, the number of digital-savvy users is growing.

Help, guidance, and resources have poured into African nations courtesy of several global organizations as well as developed economies in the slipstream of this digital awakening. The investments have gone mostly into enabling resources such as high-speed internet. Today nearly 36% of the African population has access to broadband internet. A decade ago, this was in single digits.

Let’s look at this movement more closely.

From laggards to leaders

While Africa was significantly late in appearing on the digital economy radar, that did not stop it from beating all odds to emerge as a leader today. This is especially true in some areas. Take, for example, digital payments. McKinsey estimates that the African e-payment market will grow by 150% between 2020 and 2025.

Countries like Nigeria, Kenya, and others are witnessing their digital transaction volumes doubling almost every year. Citizens are becoming more aware of the benefits of using digital payment mechanisms. A vast population that was outside the traditional banking systems is coming aboard now to enjoy extraordinary benefits.

This is an inspiring journey and can set precedents for other regions to follow. Most African nations are now focused on creating a welcoming environment for fintech innovations in their markets. These innovations are those that can break barriers to the adoption of new-age financial instruments by the masses.

The journey is not without challenges

While sectors like banking are showing promise, the African continent does have some very basic challenges. It is estimated that nearly 900 million people in Africa are still not connected to the internet. For those who have managed to hop onto the internet bandwagon, businesses are facing challenges in improving service experiences. From physical limitations created by irregular power supply to security threats in cyberspace, there’s quite a journey to endure before success.

The role of telecom in Africa’s digital maturity

We have already seen the number one problem that stands in the way of making Africa a competent force in the digital space is poor connectivity. More Africans need to become connected to the internet at affordable rates. Moreover, it is equally important for newer digital business services to penetrate deep into such untapped markets seamlessly and securely. In this context, telecom players can play a central role in bridging the gaps on the road to digital maturity in the African market.

They can bring the much-needed connectivity that will boost the online population figures. Additionally, telecom companies can transition into trusted enablers of digital services by providing a foundation for other businesses to build on top of. In other words, telecom operators have the opportunity of a lifetime to radically transform a region that is poised to be the next big international growth market.

How can telecom companies be the flag bearer of digital innovation in Africa?

Let us explore the top 3 ways in which telecom businesses can empower major changes and be a part of Africa’s most anticipated growth journey:

Create a new internet population faster

Telecom companies play a key role in helping more people get online on the continent. While faster internet services and phone networks are important areas, telecom operators must build a seamless customer acquisition strategy as well. A major hurdle in this strategy is getting people on board faster without complications. This is where telecom companies can leverage solutions like eKYC to minimize friction and get things done within the quickest timeframe possible.

Eliminate fraud

Telecom companies can ensure that they prevent fraudulent engagements in their networks. It can use platforms such as Armour to ensure that spam, fraudulent SMS created with SIM farming, IP-BX frauds, etc. are prevented from making any presence in the business.

Support digital business growth

Businesses must offer seamless digital services at scale to impress users and attract new customers. However, with the rise in digital consumption, there will be a major uptick in the number of cyber threats as well. We have seen rising instances of fraud and identity theft resulting in people losing money considerably. Telecom companies can truly help create a difference in this scenario.

By deploying tools like Authentrica, enterprises can use telecom networks as a major source of verifying the authenticity of users. From multi-channel authentication to Flash Calls, it becomes easier to identify and remove threats before they unleash damage. 2 major benefits could accrue here. They help in avoiding transactional vulnerabilities in the network. At the same time, they allow businesses to quickly on-board new customers with genuine credentials through real-time authentication.

The bottom line

Africa will be a land of opportunities for the digital community and a growth engine of the world in the coming years. Telecom players can be key catalysts of that revolution. They can help businesses of all kinds tap into this emerging market. In this journey, telecom players, need access to the right tech that can help in building an enabling ecosystem that can also be monetized. This is where our suite of offerings can help. Get in touch with us to know more about our Africa story.

Voice Managed Services – The Next Big Opportunity For MNOs?

Gone are the days when Mobile Network Operators (MNOs) relied on voice calls and SMS to generate revenue. The telecom industry has witnessed a dip in revenues from voice calls and SMS in the last few years.

Voice traffic decreased consistently after peaking in 2014. According to Tejas Sawant, the VP of Strategic Partnerships at Globe Teleservices, increased smartphone adoption is responsible for this plunge.

Besides the slowdown in voice traffic, MNOs are also facing other issues, such as:

Telecom fraud

The MNOs lose over $32 billion annually due to increasing telecom fraud, which has decreased customer trust.

Revenue leakage

International Revenue Sharing Fraud (IRSF) is another fraud leading to revenue leakage. In IRSF, the fraudster routes calls and messages to premium services or destinations with high termination charges. By exploiting the revenue-sharing agreement, the fraudsters receive a high revenue share causing telecom operators to lose money.

Cash flow management

Sometimes, MNOs face challenges in monitoring the credit limits or sending invoices and receiving payments on time. These problems impact the cash flow and pose difficulties in generating revenue.

Interconnect billing problems

Sometimes, MNOs face interconnect billing issues, such as inaccuracy in the settlement process, overcharged invoices, and operational inefficiencies. Since MNOs generate over 50% of revenue through interconnect agreements, these complexities often lead to cash flow problems.

There is also the fear of an increasing commoditization of basic services like voice, causing a lack of differentiation, customer loyalty, and poor profit margins. Problems like these lead to revenue loss, poor call quality, and disgruntled customers.

One way to solve these challenges is with Voice Managed Services.

What Is Voice Managed Services?

Managed services is a practice of outsourcing the responsibility of managing processes and functions of the MNOs. It helps them streamline operations, improve service quality, and reduce revenue loss.

A managed services provider oversees everything, from stopping revenue losses to preventing fraud and managing daily complexities like renewing roaming agreements. They do the day-to-day heavy lifting to free up the internal teams to focus on core business.

How Can MNOs Benefit from Voice Managed Services?

Here are a few benefits of collaborating with managed service providers:

1. Improve revenue assurance

Managed service providers streamline the billing cycle, invoicing, and payment processing. They monitor the existing credit limits and revenue streams to improve the revenue assurance processes. This helps MNOs establish and manage a steady cash flow.

2. Manage frauds

Managed service providers possess the tools and capabilities necessary to detect and prevent fraud. Here’s a sneak peek of what they can do:

They provide Artificial Intelligence (AI) and Machine Learning (ML) solutions to help MNOs detect fraud and spam efficiently.
They examine Call Detail Records (CDRs) to identify common patterns and anomalies, indicating potential fraud.
They monitor the network traffic using AI, help MNOs identify fraudulent activities and unauthorized traffic to protect the network.
They develop comprehensive fraud detection strategies that allow MNOs to take proactive measures and minimize their financial losses.

3. Increased focus on strategies

MNOs are often caught up in adhering to regulations, preventing fraud, and managing day-to-day operational complexities. It leaves them with little time to focus on growing their business. Managed service providers can address these concerns with their expertise and advanced technologies like AI-based fraud detection solutions. This allows the MNOs to focus on their core competencies, enable innovation, and find new revenue streams.

Challenges In Using Voice Managed Services And How To Overcome Them?

Although the MNOs benefit from managed services, there are a few hurdles to overcome.

For example, MNOs must sensitively tackle concerns like human resource displacement.

They must ensure the existing employees are looked after even as they collaborate with managed service providers for value-added services.

Additionally, managed service providers cannot follow a one-size-fits-all approach to building strategies. Every region follows its voice service regulations. For example, voice call services are highly regulated in Europe, while bypass activities are common in Africa.

Thus, they must consider these unique regulatory challenges while developing strategies.

To overcome such hurdles, managed service providers can consider developing modular service models for MNOs. These models are tailored to meet the specific needs and priorities of MNOs. For example, the MNOs can decide what part of business they want to prioritize while engaging with the service provider. This approach helps them better understand their partner and build trust over time.

Conclusion

Undoubtedly, managed service providers are a boon for MNOs looking for strategic partnerships with experts who manage operations.

They enable MNOs to focus on innovation by handling regulations and complex tasks and freeing up their time and resources. They streamline operations, enhance customer experience, and prevent revenue leakage.

It can help MNOs overcome troubles like decreasing demand for voice calls, increasing telecom fraud, and focusing on growing business.

There are challenges like region-specific regulatory issues and human resource displacement.

However, a modular approach and reskilling can help overcome these challenges and build sustainable relationships with providers.

At Globe Teleservices, we work with MNOs worldwide to improve their voice communications.

We leverage AI/ML-based technologies, direct interconnects, and high-quality international routes to manage client’s risks, enhance business, and prevent fraud.

Contact us to learn more about how you can grow your business in this hyper-competitive environment without worrying about complexities.

Anti-fraud Solutions in A2P SMS – Latest Trends, Threats, and Solutions

At the recent MWC Barcelona 2024, SMS fraud was a popular topic of discussion. In several panel discussions and other engaging sessions, expert speakers and industry pioneers delved into the security challenges of mobile communications. One enduring concern was the need for recalibration to end vulnerabilities in messaging systems.

So, what factors are behind this rise in sensitivity to SMS fraud?

In today’s business world, A2P SMS is an ever-growing trend. A2P SMS is leveraged by brands for sending marketing content, product notifications, alerts, reminders, and more. While this type of messaging is known to be far more reliable and effective than traditional emails, they are also becoming highly susceptible to fraud. From malware to phishing and spam, these threats have far-reaching impacts on mobile operators, including poor customer experience, plummeting revenue, and diminished brand value.

Read on as we delve into the common risks in A2P SMS and the various anti-fraud solutions you should adopt to steer clear of threats and attacks.

The Evolving A2P SMS Threat Landscape

Protecting business and customer data is a top priority for most modern companies. Yet, in a bid to drive better engagement and accelerate transactions, many organizations use A2P SMS to share important information. With benefits such as instant delivery, wide reach, and cost-effectiveness, A2P SMS acts as an extremely reliable and scalable communication channel. Analysts expect the global A2P SMS market to be worth $89.3 billion, driven by the rising proliferation of mobile phone users, mobile marketing, and e-commerce.

But as A2P SMS grows, messaging fraud is also on the rise. This communication channel is being seen as something of a soft target for attackers to launch several types of phishing and spoofing attacks.

Scammers use A2P SMS to lure victims to fake websites and reveal personal information such as passwords, PIN codes, bank account numbers, and more.
Via SS7 attacks, fraudsters can take advantage of vulnerabilities to perform malicious activities such as data theft, text interception, or location tracking.
They can manipulate sender information to make them look legitimate and deliver links to malicious websites.
Bad actors can infect A2P SMS’ with malware or viruses that can compromise the security of mobile devices and result in unauthorized access to sensitive information.
Fraudsters can also use A2P SMS to send unsolicited messages offering subscription services, tricking recipients into unknowingly subscribing to costly services.

Evaluating Popular Anti-fraud A2P SMS Solutions

As a business that relies heavily on A2P SMS, protecting yourself against threats requires you to implement certain security measures. Here are some anti-fraud solutions you can invest in to thwart A2P SMS attacks:

Blockchain-based Data Encryption

In the realm of A2P SMS, Unsolicited Commercial Communication (UCC) is a major headache for most telecom operators. In addition to causing unnecessary frustration for users, it also increases the risk of malware, phishing attempts, and scams. Telecom operators can use blockchain-based regulatory technology platforms to register enterprise clients and telemarketers on a unified platform.

By offering access to the regulator, they can establish accountability for each event of A2P communication while blocking UCC across messaging networks. Via real-time consent management and scrubbing, these platforms can help in securely storing user, entities, and MNO data using DLT properties like immutability and encryption. Acting as a true ‘zero trust’ platform, blockchain technology can restrict stakeholders from changing any past data in any block and safeguard the business and its users against attacks.

Analytics-driven Fraud Detection

As operators struggle to combat the risks of A2P messaging, analytics-driven fraud detection platforms can help identify and prevent fraud. By monitoring SMS data in real-time, these platforms can detect fraudulent activities and pave the way for effective threat detection and remediation.

Telecom regulators can view quality and fraud data over a single dashboard. They can collect raw telecom traffic data from telecom network operator systems and use proprietary AI/ML algorithms to spot patterns and network vulnerabilities.

SMS Firewalls

SMS firewalls are a popular mechanism to protect mobile networks against SMS-based attacks. These firewalls help block fraudulent activities across all points of traffic origination. Employing AI/ML models, they can monitor real-time networks using signaling rules, detect anomalies in traffic patterns, and generate new rules for unidentified frauds.

Via real-time reporting, they can present a statistical view of all SMS transactions including incidents of fraud, and enable operators to allow/block/ignore traffic. Such real-time updates on global traffic patterns also enable the platform to generate its blacklisted content and sender types for an improved and safe user experience.

Enable Seamless and Secure Global Messaging with Globe Teleservices

The digital communication landscape is undergoing a significant transformation, with A2P SMS poised for unprecedented growth. As businesses look to exploit this mode of communication for customer engagement, they must also be aware of the many risks and invest in solutions to mitigate these risks.

Looking to securely employ A2P SMS to deliver instant messages to customers, widen reach, and boost engagement? Learn how Globe Teleservices can secure this communication channel, grow subscribers, and build brand loyalty. Explore our anti-fraud A2P SMS products and solutions for seamless and secure global messaging.