Category: Telecom

A quick scroll through the multiple SMS alerts on your mobile phone will show you just how much businesses have been using SMS to reach out to their customers. Whether it is sending promotional messages, transaction alerts, OTPs for security, or personalized messages like a birthday discount on products, businesses have been using SMS to connect with the customers. This type of SMS is called Application to Person (A2P) messaging and it has become a go-to tool for businesses.

Unlike social media channels, paid ads, or emails, A2P messages are more personalized and engaging as they communicate directly to the customer. 98%of SMS messages are opened as compared to 20% of emails. The click-through rates are 19% as compared to  2% for emails’. Businesses have been constantly increasing their adoption of A2P SMS. No wonder the A2P SMS market is touted to be a $77.1 billion market by 2026.

Every business is looking for a cutting-edge A2P SMS platform that can help them reach out to their customers better and improve their conversions.

However, to be considered effective, the A2P SMS platform must possess the following features.

Must-Have Features A Cutting-Edge A2P SMS Platform Must Possess

Rich communication services (RCS)

Conventional SMS’ are plain texts. However, instant messaging platforms paved the way for media-rich communication. Businesses realized that using media-rich messages can help them capture the customers’ attention and engage them. They can send website links, QR codes, images, ticket or boarding passes, product carousels, etc., through A2P SMS. This helps businesses to build long-term customer engagement and create a unique identity of their brand. RCS support is one of the first things that businesses must look for in an A2P SMS platform. The platform must support all types of rich communication. The platform should allow businesses to share geo-targeted texts, photos, and video notifications to customers. The platform should also allow businesses to have a two-way interaction with their customers through interactive functionalities such as chatbots, quizzes, and polls. The objective is to help businesses build an effective and direct communication channel with their customers.

API connectivity

An A2P SMS API enables businesses to connect to a reliable SMS gateway so that they can send bulk promotional and transactional messages to their customers around the world securely. These messages are sent and received through applications, webs, or systems. Businesses prefer API connect as it helps automate the messaging process. So, businesses don’t have to send messages manually to every platform. They can automate this task so that thousands of messages are automatically sent within seconds. This is especially useful when businesses do SMS campaigns. API connect also offers integration with CRM, so businesses can receive and maintain customer data efficiently. They can produce regular reports on how each integrated platform has generated traffic or met business goals. This enables the business to gauge each platform’s effectiveness and create data-centric campaigns. The flexibility and effectiveness make API connect a must-have feature in an A2P SMS platform. Businesses prefer it as it eliminates hard work and enables them to manage the campaigns efficiently.

Uses direct routes to send messages

Most often, businesses unknowingly send A2P messages through grey routes. So, when a business sends a message to a customer residing in the same country, it bounces across different global carriers and then sent to the recipient. In the process. it tries to hide the source of the message to the mobile networks. The stated aim is that the message is transmitted for a much-reduced cost. The attraction of the low cost encourages the businesses to send more bulk promotional messages. However, grey routes have their limitations. To begin with, it is unethical. It can also expose the recipient of the message to malicious attacks and expose the receiver to unnecessary risk. Secondly, there are no delivery receipts in grey routes, so businesses will have no trace of whether the messages were delivered. Finally, if a host network identifies a grey route, they will shut it down, and all the messages that were intended to be sent to the customer will never get delivered. Although direct routes may be comparatively more expensive, they are ethical, secure, and can quickly transmit a high volume of messages to customers. The A2P SMS platform must offer a direct route to transmit messages. They should be compliant with the wholesale roaming agreement. This will enable the businesses to send messages to their customers knowing that they will get delivered.

A2P SMS termination

A2P SMS termination presents a great opportunity for revenue growth. Businesses normally lose millions due to lost termination fees. It occurs because of the prevalence of grey routes that don’t charge transparently for message transmission or delivery outcomes. The business can be safeguarded by partnering with global OTTs, and A2P aggregators. Businesses can ensure that the SMS termination happens directly with them, so they can earn revenue from it. That’s why the A2P SMS platform must have direct interconnection with carriers and operators worldwide.

Conclusion

As we have understood by now, businesses are keen to use A2P SMS more frequently to communicate with the customers. Hence, it’s essential to keep pace with the changing ecosystem of A2P messaging and include these must-have features in the platform they choose. This will not just help in meeting the business needs, but will also keep them safe.

At Globe Teleservices, we offer international messaging services that provide businesses with a competitive advantage. We offer:

• API connect for A2P bulk SMS campaigns
• Direct interconnection with 100+ carriers and leading operators in more than 35+ countries for direct SMS termination
• Direct routes and high-quality routes to safely send the messages to customers
• Flexibility to send rich-media messages to customers

Mobile security is on top of everyone’s mind and for good reason – mobile phones are now seamlessly integrated into everyone’s personal or professional lives. Nearly all businesses allow employees to access corporate data from smartphones. This trend has become more prominent during the pandemic and is only expected to increase. Hence the focus on mobile security.

The mobile security market is poised to grow from $3.0 billion in 2019 to $7.2 billion by the end of 2024 driven by the increase in mobile payments and the rising security needs of the enterprise as they enable BYOD programs. The growing reliance on mobiles demands mobile operators to look at the security loopholes and threats that still exist in this ecosystem.

Here is a look at some of the mobile security threats that we are likely to hear more of in 2022

The grey route challenge

Grey routes continue to be a point of attention when it comes to security. One of the most common problems for MNO’s, grey routes can lead to huge losses to the operators. SMS grey routes are expected to lead to revenue leakages amounting to US$37.1 billion between 2020-2024. The total opportunity for A2P SMS stands at $27.48 billion in 2024 based on white route traffic. The revenue leakage to grey routes continues to be exceptionally high with an anticipated annual loss of $7.69 billion.

Next-gen impenetrable, robust, and resilient SMS firewalls will thus become imperative to block grey routes and prevent revenue leakage. Such firewalls also help in blocking illegal SMS traffic by active monitoring of Mobile Originated, Mobile Terminated, and Application Originated SMS and all entry points.

Real-time monitoring, System-level filtering & Intelligent SMS Firewall Rules can help MNO manage the grey route menace, prevent revenue losses, and improve customer faith by assuring their safety.

Network security attacks remain a point of concern

MNO’s will continue to improve network security in 2022 especially as Openness becomes a double edge sword. As technologies such as IoT and AI proliferate and 5G promises to mature, network operators have to protect their current network by improving their security architecture. As connected devices and data exchange promises to only increase, legacy networks may struggle to meet present-day security needs.

MNOs can look at network virtualization to support today’s complex security needs. Network Virtualization enables operators to leverage strategies such as network slicing to separate network resources and guarantee greater security. Since each of the network slices has an individual authentication process detecting changes in behaviour patterns or traffic becomes easier to identify and mitigate proactively.

SIM jacking and SMS phishing remain concerns

Telecom fraud such as SIM jacking and SMS phishing is not uncommon and won’t go away in the coming year as well. If anything, the hackers are only going to get smarter and more sophisticated.

Proactive route testing, home routing, and re-routing help operators analyze the information sent and received between two parties. Any discrepancy could reveal suspect routes which could then receive proactive attention.

Home routing helps the operators curtail faking and SMS spoofing by giving them control over the traffic generated abroad. Re-routing ensures that A2P messages are rerouted across tested routes to senders who do not allow A2P content termination.

Spoofing

SMS spoofing will continue to plague MNOs. SMS spoofing allows the sender to manipulate information. It disguises a user that has roamed into a foreign network and is submitting messages to the home network.

SMS spoofing is quickly evolving and is one of the fastest-growing methods to penetrate mobile operators. This challenge needs to be mitigated fast since mobiles are being used extensively for corporate marketing and branding and mobile advertising. SMS spoofing becomes a threat since it can be achieved easily since almost all phones today have access to and can be accessed from the internet.

Robust SMS firewall solutions with features such as global tile blocking, legal interception, blocking messages based on system-level filtering, intelligent SMS firewall rules, map operation codes, Live GUI and CDR for analysis, etc. can help MNOs tackle the spoofing menace.

Refiling, A-Party Refiling, A-Party Caller Spoofing are also security areas of focus to prevent revenue leakage owing to voice fraud. These are methods through which clearinghouses or transit carriers terminate traffic to an operator, spoof the CLIs (Calling Line Identity) of calls to a network. False answer supervision allows the call to be answered but not reported back to the caller. This drives up the minutes and cost of the call, while the MNOs don’t realize the revenue.

AI-ML-based voice firewalls can prevent these threats and protect operators and enterprises from all kinds of voice fraud from both incoming and outgoing traffic. They can identify suspicious inbound and outbound traffic streams based on behavioral patterns and anomalous traffic. This also protects subscribers from fraud, quality fluctuation, and surprise bills.

Data security

The focus on data security is only going to increase in 2020 especially with the proliferation of financial services into the mobile space. As telecom companies add value-added services and integrate digital payments into the mix of their offerings, elevating data security assumes primary importance.

Enabling e-KYC solutions that are comprehensive and secure and capably create digital identities will improve the verification and authentication processes while delivering a higher degree of security and data privacy. GPS and OCR technologies coupled with AI and Machine Learning can optimize the KYC process and make it more secure and trustworthy.

AI-based identity and document validation and verification coupled with geo-location identification become essential technologies that help MNOs balance regulatory requirements without compromising security and customer experience.

The rise of the mobile as a tool to drive and foster better customer engagement can also be credited to mobiles becoming an extension of our lives and our workplaces. Given this, keeping mobile security top of the mind not only makes sense but becomes essential in the wake of rising cyber threats and attacks.

Worldwide, the traditional telecom industry has witnessed traditional revenue streams shrink but as the industry seeks further development and growth it’s turning its attention to Africa.

The mobile revenue in Africa is predicted to grow to $68 billion by 2022. While voice revenues in all likelihood will be flat as cheaper OTT services remain popular among cost-conscious customers, mobile broadband and digital services revenue are all predicted to double over the same period. The pressures on conventional revenue streams have started an industry-wide push for innovations that can utilize the massive infrastructure and data most telcos possess.

In the context of Africa, some new influences are visible and some of the same conditions apply as do in the rest of the world.

Modern customers want greater convenience and enhanced experiences and are open to engaging with their service providers via increasingly complex omnichannel initiatives. ‘Sculpting customer experiences’ is the mantra today. Providing connectivity and digital access remains the essential part of the telcos’ offering, but there’s so much more for them to do now and plan for in the years to come. As technology evolves rapidly, ubiquitous connectivity will become table stakes and the game will be all about what more can telcos offer?

Innovation-fed transformation across the telecoms value chain is driving African telecom operators to plan for these new value propositions. Digital technologies have brought several new aspects to light. The growing ubiquity of smart devices has catalyzed customer demand for new services and increasingly personalized experiences. New entrants intensify competition creating downward pressure on pricing, and regulations are becoming stronger. To maintain a competitive edge and relevance, telcos must look for newer ways to differentiate themselves, get and hold customers, and power top-line growth.

There are four aspects where investment in digital technologies will be particularly valuable.

1. Networks of tomorrow
2. New digital offerings
3. Reimagining customer engagement
4. Bridging the gap in innovation

For African telecom companies, the ‘new’ journey will be a harmonizing act: they need to safeguard their primary offerings while rotating to the new—identifying, developing, and releasing new digital offerings — to drive revenue growth.

While African telecom companies are looking to contain costs, they are also seeking revenue growth. Utilizing its large customer base, each telecom company has developed diversification plans based on data services, digital services, mobile money services, and Value Added Services (VAS).

Data Services

Mobile handsets are perhaps the leading sources of individual customer data available currently. Telcom companies are at the forefront of data custodianship as subscribers use various data-generating apps and services connected to their mobile devices. These present considerable opportunities for telecom companies to mine enormous amounts of individual customer data, build complex and multidimensional customer profiles, and develop individualized customer offers and experiences to deepen brand affinity and increase wallet share.

Africa’s data revolution is rolling in full swing, and telecom companies, both old and new, embrace a range of strategies – from cheap smartphones to the roll-out of fast speed networks – to maintain and grow their data revenue, while not neglecting voice completely.

The increased affordability of data-enabled devices is driving the data explosion. With the rise in data use, simple voice calling handsets are losing their luster, and several African operators are now selling cheap smartphones via partnerships with Chinese device manufacturers such as Huawei and Tecno.

Also, there is a batch of exclusive LTE entrants arriving in Africa. With no history of offering voice services, these new entrants have bypassed 2G and 3G networks and directly built LTE networks in Africa. For instance, Surfline Communication launched Ghana’s first LTE network in 2014. African governments have been granting data-only licenses, wherein telecom companies can only begin providing voice when they have hit certain penetration levels with data.

Value-Added Services

Telecom companies can decide to own the customer rather than the network. This model places telcos higher up the value chain through a customer-centric lifestyle platform. Use cases like content streaming, banking services, and gaming, can give telecom companies revenues by adding and diversifying the present mobile services–reliant ARPU. Building an ecosystem that caters to end-to-end apps will allow telcos the opportunity to monetize both transaction and subscription fees, besides higher data consumption.
This is great for telecom companies, as they own a ready-made platform for seizing additional customer spending. They can build 360-degree profiles of their customers, that companies can collect, act on, and monetize. Mobile money, is a valuable entry point for telcos to grow, as Safaricom did with M-Pesa.

Mobile Money

Globally, there is no other continent that moves more money on mobile phones than Africa. The continent is presently responsible for an astounding 45.6% of mobile money activity in the world—an estimate of at least $26.8 billion in transaction value in 2018 alone—this number excludes bank-operated solutions.

Africa’s telecom companies are at the forefront of plans to bring banking to millions of Africans, in some cases for the first time, after the coronavirus dramatically accelerated the use of digital financial services.

By offering customers frictionless payment options besides other mobile financial services, telecom companies add considerable value and play a fundamental role in driving change. Technology firms (old and new), retailers, mobility companies – and others – are all looking for ways to incorporate mobile financial services into their business models. The timing is perfect for telecom companies that are looking to capitalize on their reach in remote villages and urban slums to pivot to financial services and banking.

Adapting to New Landscapes

Telcos looking to improve outcomes and eliminate inefficiencies are running a comprehensive analysis of the state of their operations, utilizing a customer-centric lens. Where are their fundamental capabilities most potent? Are they tactically employing resources to support the right competencies? Where are they falling short on delivering an exceptional customer experience? Where must operations be reinforced—and where should they be restructured?

Revolutionary telcos must decide what they are – a utility or a tech innovator? Either choice has extensive tactical implications that will impact everything from leadership down to the frontline operating model. In many cases, it could overturn how these businesses have been run for decades.

Regardless of the approach, African telcos will require to shift their trajectory quickly if they want to stay in the game. By investing in a customer-centric approach, they will be better placed to enhance customer loyalty, reduce churn, increase ARPU, and capture more spending even as their markets mature. But these changes demand time, calculated focus, and investment—all of which will be limited if telcos wait too long to make their play.

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.

The present era of connection that we live in demands businesses not just meet customer needs but anticipate them and then, exceed them. A volatile market, fluctuating consumer demands, and rising competition, however, make the playing field more complex. With the consumer firmly in the driver’s seat, delivering elevated customer experiences emerges as the key differentiator that separates successful organizations from the not-so-successful ones.

Pivoting to a digital-first mindset is now imperative to succeed in a world where competition is getting increasingly advanced and data, more detailed. While telecom organizations are leveraging data from the smartphone that has become ubiquitous in our lives, it is also time to leverage the world of wearables and connected devices to capture data that can drive demand and influence customer decision-making.

Research estimates that the wearable technology market will be worth $45 Billion with over 250 million annual unit shipments by the end of 2021. It is expected to grow at a CAGR of 22% between 2018 and 2021. In keeping with this trend, mobile connectivity and associated advanced capabilities – such as VoLTE (Voice over LTE) are also being integrated into the wearable and smart devices ecosystem. Research suggests that these devices will help “mobile operators drive more than $12 Billion in service revenue by the end of 2021, following a CAGR of approximately 36% between 2018 and 2021.”

For telecom providers, this also signals a more nuanced way to look at the commoditization of telecom services especially as the world becomes more software-defined. Wearable technology integration into the lives of the consumer is a sign of their willingness to engage with wearable tech. It demands expanded wireless capacity and the decreasing cost of data. However, it means access to more personal and contextual data that can help them deliver more personalized experiences to drive elevated customer experiences.

To succeed in today’s marketplace, combining wearable data with consumer data can give telecom providers the insights they need to deliver personalization to influence customer satisfaction and ensure customer retention.

Smartwatch data, in-ear virtual assistants, wearable technology: smartwatches, smart glasses, headsets, smart headphones, and other internet-enabled devices all generate a huge volume of data, all of which is personal and contextual to the consumer. Using this data telecom providers can:

Identify sales and upselling opportunities

Customer data generated from wearable devices present insights into their habits, choices, and preferences. Telecom providers can leverage this data and analyze patterns and trends and identify cross-selling and upselling opportunities. This data can also be used by customer service executives to engage with the customer more meaningfully and present them with services and offers that are contextual to their needs and requirements and converse with more certainty.

Improve customer support

By leveraging data generated from wearables and smart devices, telecom companies can also personalize the customer support experience. Following a robotic script and taking the customer through a series of questions only erodes goodwill and further aggrieves an irate customer. Following this script also makes it harder for the customer service representative to connect with the customer in a more meaningful manner.

Using data generated from this device network allows the customer service team to identify the points of conflict and challenges with greater certainty. This gives them the capability to better personalize support services and address customer issues more proactively.

Empowering the customer care executive with data can also assuage an irate customer by offering more relevant discounts or offers to compensate for issues faced by the customer. This personalization not only ensures better customer management but also ensures better customer satisfaction.

Customer support teams can also proactively track customer issues and proactively solve them before the customer reaches out for support. Providing a detailed understanding of the issue further builds credibility and drives customer loyalty.

Personalize marketing

Personalizing marketing experiences is of critical importance today to drive customer adoption and advocacy. It plays a great role in ensuring customer stickiness. Wearable and smart devices often allow users to buy products online. Telecom providers can use this data to create marketing plans and offers that are more contextual and relevant to the consumer. A free Netflix subscription, for example, might not be a great bait for someone who perhaps likes to shop more than a stream.

Data from wearables such as Google Glass can be used to track what advertisements the consumer views and takes interest in. With access to real-time data, telecom providers can send localized, context-based content and augment customer experiences with greater personalization.

Using data from these devices empowers telecom companies to engage with the consumer in a more meaningful, and intelligent manner. Data generated from these devices can give telecom companies deep insight into consumer patterns and behaviors that they can use to consistently improve the customer experience at each point and identify avenues to drive usage.