Missed calls have long been used informally as a signaling method by users. However, their adoption by enterprises as an authentication tool on Android phones has telecom providers concerned about revenue loss. A flash call is a quick missed call used for mobile number authentication, especially during app installations. The mechanics are straightforward: when a user initiates an action requiring verification, such as logging into an account or completing a transaction, a call is automatically placed to their registered phone number. The call typically rings once or twice before disconnecting, and no conversation takes place. The system then verifies the user based on the phone number called, confirming the user’s access to the associated phone. This method leverages the telecommunication infrastructure to provide a quick and cost-effective way to verify identity without requiring manual code entry.
The recent increase in international calling and messaging rates due to immigration has led businesses to opt for alternative authentication methods, resulting in a substantial rise in the volume of flash calls. As these calls offer a convenient and cost-effective solution for authentication, they have become a popular choice among businesses. However, the telecom industry struggles with the rising issue of flash calls, and regulatory bodies have yet to address these concerns comprehensively.
Rising Popularity Among the Users
Flash calls are gaining popularity among consumers due to their convenience and efficiency.
It is expected to reach 128 billion calls globally by 2026, as per Juniper Research. Unlike traditional methods of verification, such as SMS-based one-time passwords (OTPs), flash calls eliminate the need for users to manually enter codes, streamlining the authentication process. This makes it particularly appealing for users who want a quick and seamless experience. Additionally, flash calls are generally more cost-effective for businesses, as they utilize the existing telecommunication infrastructure without incurring SMS charges. This cost-efficiency can be passed on to consumers, potentially leading to lower service costs. Moreover, flash calls enhance security by reducing the risk of interception or phishing attacks associated with SMS OTPs. As a result, more users are turning to this method for a hassle-free and secure verification process.
The Impact on Telecom Operators
While flash calls offer a convenient and cost-effective solution for consumers and businesses, they can impose hidden costs on telecom providers. These costs arise primarily from the increased volume of signaling traffic generated by flash calls, which can strain network resources. Unlike traditional calls that involve a complete call setup and teardown process, flash calls create a surge in signaling traffic without generating corresponding revenue from call charges. This imbalance can lead to network congestion, impacting overall service quality and potentially requiring telecom providers to invest in additional infrastructure to handle the increased load. Additionally, flash calls may lead to an increased incidence of missed call alerts and associated customer service queries, further adding to operational costs. As the popularity of flash calls rises, telecom providers must address these challenges to maintain network performance and customer satisfaction.
Strategies for Combating Flash Calls
To mitigate revenue loss and foster sustainable growth in the face of the emerging challenge posed by flash calls, telecom operators can adopt several strategies:
- Invest in Network Optimization: Telecom operators should invest in advanced network optimization technologies to manage the increased signaling traffic caused by flash calls. Implementing intelligent network traffic management systems can help balance the load and prevent congestion, ensuring that service quality remains high without incurring excessive operational costs.
- Introduce Flash Call Detection and Billing: Developing systems to accurately detect and categorize flash calls can enable telecom operators to introduce billing models specifically for these calls. By charging businesses for the flash call authentication service, operators can create a new revenue stream that offsets the costs associated with increased signaling traffic.
- Enhance Fraud Detection and Prevention: Strengthening fraud detection mechanisms can help telecom operators identify and block unauthorized or malicious flash call activities. By leveraging advanced analytics and machine learning, operators can proactively safeguard their networks and minimize revenue losses due to fraudulent activities.
- Expand Value-Added Services: Telecom operators can expand their portfolio of value-added services by offering comprehensive authentication solutions that go beyond flash calls. Integrating biometric verification, app-based authentication, and multi-factor authentication services can provide businesses with a robust and versatile authentication suite, generating additional revenue streams.
- Collaborate with Businesses: Establishing partnerships with businesses that rely on flash call verification can create mutually beneficial opportunities. Telecom operators can offer tailored authentication packages, including volume-based pricing or subscription models, encouraging businesses to adopt these services while ensuring a steady revenue flow for the operators.
By implementing these strategies, telecom operators can effectively address the challenges posed by flash calls, mitigate revenue loss, and pave the way for sustainable growth in the evolving telecommunications landscape.
In addition to these strategies, operators can monetize and secure their revenue amidst the increasing use of flash calls by adopting advanced solutions like Globe Teleservices’ flash call blocking service. This innovative solution helps detect and block unauthorized flash calls, protecting network integrity and reducing fraudulent activities.
Contact us to discover how our approach is enabling operators to remain competitive and profitable in the face of this emerging challenge, providing a robust framework for continued growth and customer satisfaction.