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.