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4G: Managing the Oxymoron

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4G: Managing the OxymoronJohn Brooks

www.subex.com

May 20th, 2015

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Webinar

About the Presenter

John Brooks

Vice President of Product Management • Over 25 years in Telecommunications spanning Fixed, Mobile, Data, and

Video technologies.• Have directed over 40 successful Cost, Revenue, and Business Optimization

engagements at over 24 top-tier carriers globally.

Table of content

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4G growth: and it’s drivers

Oxymoron of 4G: What complicates assurance in 4G

Revenue Assurance in 4G: Focus Areas

Fraud Management in 4G: Focus Areas

Addressing the risks: required capabilities

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Oxymoron

Oxymoronphonetic: awk·see·more·ona figure of speech in which apparently contradictory terms appear in conjunction (e.g., faith unfaithful kept him falsely true ).

Other examples:“cruel kindness”“jumbo shrimp”“open secret”

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4G Growth

2010

2014

20 commercial LTE networks across 14 countries

320+ commercial LTE networks across 110+ countries

CommercialFactors driving 4G growth

• 4G adoption is considerably faster than 2G to 3G

• 4G users consume twice the amount of data as compared to Non 4G users

• ARPU:

o Developing economies: 7x to 20x times greater than Non 4G users

o Developed economies: 10% to 40% uplift over Non 4G users

• Highly flexible deployments - 12 different frequency bands to date

• High interoperability: 4G versions like LTE are both legacy & future network compatible

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What will drive 4G growth further ?

• Data Traffic: Data traffic is expected to rise to 17 Exabytesby Dec 2018, from an approx. of 3 Exabytes currently

• Smart Devices: Smart Devices share to increase to 54% (5.5 billion) by the end of Dec 2018

• LTE Subscription: LTE subscription to increase 4.5 folds to 1.3 billion by the end of Dec 2018

CommercialWorldwide

4G gives an opportunity to the communications service providers to compete with OTT Players through delivery of reliable and quality converged services

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What makes 4G better for the Operators

Consumer ServicesFit

4G 3G

Live messaging

Next generation music

Enhanced mobile video

Multi-party video calling

Image-enabled search

Location-based service

VoIP based calling

Mobile gaming

Connected car

Mobile advertising

Mobile payment and banking

Enterprise ServicesFit

4G 3G

Secure/manage data on devices

Mobile collaboration


Mobile cloud computing

Wireless broadband branch office

Location-based comms and services

Navigation helper

Interactive digital signage

M2M

Public safety

Surveillance

Very good fit Good fit Bad fit

Enabling the real “converged” Telco 2.0

For the consumers:

Technology:

• Orthogonal Frequency-Division Multiplexing (OFDM)

• Multiple-input and multiple-output, or MIMO

Faster Speeds:

• Actual: 10 Mbps -100 Mbps

• Theoretical: 100 Mbps – 1 Gbps

Smoother Handovers

Longer Range: 10-30 miles

4G gives an opportunity to the communications service providers to compete with OTT Players through delivery of reliable and quality converged services

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What makes 4G better for the Operators

Consumer ServicesFit

4G 3G

Live messaging

Next generation music

Enhanced mobile video


Image-enabled search

Location-based service

VoIP based calling

Mobile gaming

Connected car

Mobile advertising

Mobile payment and banking

Enterprise ServicesFit

4G 3G

Secure/manage data on devices

Mobile collaboration


Mobile cloud computing

Wireless broadband branch office

Location-based comms and services

Navigation helper

Interactive digital signage

M2M

Public safety

Surveillance

Very good fit Good fit Bad fit

Enabling the real “converged” Telco 2.0

For the consumers:

Technology:

• Orthogonal Frequency-Division Multiplexing (OFDM)

• Multiple-input and multiple-output, or MIMO

Faster Speeds:

• Actual: 10 Mbps -100 Mbps

• Theoretical: 100 Mbps – 1 Gbps

Smoother Handovers

Longer Range: 10-30 miles

So, 4G is good, right ?

Not so much if your role involves managing risks in this highly converged area

The Oxymoron of 4G

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Complicating the Assurance: The Network & O/BSS Systems

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OCS

OFCS

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OCS

OFCS

DPI

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New Network Elements

› 4G introduces new set of network elements and O/BSS systems

› This points to increase in complexity & volume of RA & FM activities to be performed due to increased data sources and controls

› Non COTS elements have questionable levels of data extraction, logging and access levels

1 Parallel Networks

› Pure 4G Operator: Traditional networks components running in parallel to enable partner network interconnection

› Evolved 4G Operator: The legacy networks of 2G/3G need to exist simultaneously with 4G network ensuring backward compatibility

› This increases the number and complexity of controls to be managed

2Non Standard Implementations

› Some areas of 4G network, O/BSS systems and interface partnerships are taking customized approach

› This is due to lack of sufficient reference installations and standards

› E.g.: Interconnection (including roaming approach) and VoLTE/VoLTE roaming etc.

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Complicating the Assurance: The Converged Environment

Expanded Value Chain

Cloud & other IT Services Other

ServicesFinancial Services

Payment Industry

Adverti-sementServices

Cloud Services

M2M/Utillity

Services

Content Services

Traditional Telco

ServicesDigital TV

Services

OtherServices

Assurance risks have evolved due to the increased convergence

• The cross industry convergence levels are at its peak – Exposing operators to risk levels similar to the other industries like banking or content

• The cross industry risks, while not new, are expected to induce more ‘direct’ risks to the operator – the new converged service provider

• Focus is also shifting to consumer protection as Mobile/Connection is becoming a subscription identity rather than just an access mechanism

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Complicating the Assurance: Other factors

New Pricing Models & Complex Offerings

• Conversion to charging policies from minutes to bytes and bytes to service subscription & access along with dynamic delivery over complex partner agreements

• Also, new product, package and service launch are expected to see a considerable rise in throughput due to shortened development, delivery & release cycle.

Anomaly Detection

Increase in transaction volumes

Considering revenues are tied to data sessions, transaction volume management for the purpose of RA & FM is expected to be a big challenge and would require advance data treatment and management techniques

Lack of Skill SetLack of mature reference 4G LTE implementations leads to lack of required skill set which points to skill ‘creation’ rather than ‘absorption’

Increase in Assurance CostManaging more revenue assurance and fraud management controls points towards higher costs

Service level subscription, delivery & session based charging would require complex and innovative monitoring techniques & upgrade in risk detection methods powered by analytics

Revenue Assurance: Focus Areas

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Revenue Assurance 4G Scope

Product Portfolio

Ever

Data Universe Billing & Rating

• New technology and network components in core network and BSS / OSS

• Interdependency and interconnectivity with 2G / 3G networks for fall back on 4G

Technology

• New content rich services that require faster data transfers

• Dynamic allocation of QoS and throttling

• Revenue management / partnership with OTT service providers

• Change in data format for new network components

• Information carried in new data formats opens analytical options

• Larger data volumes across all 2G, 3G and 4G networks

• Application of standard rating for voice services along with content specific rates and QoS

• Rates specific to content services provided by OTT service provider

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RA Focus Area: Product Design

Marketing & campaign

management

Product & offer development

Product & offer change

management

Product Design

1 Key Areas to Address

• Driving factors that fuel revenue of 4G services over an above 2G & 3G

• Subscriber and demographic profile of users of 4G• Holistic product performance

2 Complexities to Address

• Mapping rightful analytical approach between 4G xDRs from PGW/PCEF to billing

• Deriving an approach on coupling the xDR analysis with subscriber data and applicable product catalogue in OCS / OFCS

3 Goal to Reach

• Insight into specific subscribers and usage patterns that can lead to enhancement of revenue / ARPU through targeted campaign & offer to end users

• Identification of key factors leading to opportunity loss

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RA Focus Area: Billing & Rating

1 Key Areas to Address

• xDR reconciliation between PGW / PCEF and OCS / OFCS• Rating validation for 4G services in addition to existing rating

controls for 2G and 3G

2 Complexities to Address• Policy / rule based rating validation that accounts for

Application of FUP and QoS Application of rates based on content / OTT accessed

• Traditional xDR reconciliation requires to be modified in order to address reconciliation in 4G

3 Goal to Reach

• Creation of methodology in reconciliation of xDR from core network to billing while considering policy and rule enforcement

• Re-rating of usage while accounting for policy and charging enforcement on the basis of content or OTT accessed

Usage Generation

Bill Timelines

Usage Processing

Bill Accuracy

Usage RatingAllowances &

Discounts

Network Usage & Rating

Billing

Reference Data Management

Non Usage Billing

Invoice Management

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RA Focus Area: Subscriber Insight

1

Subscriber Dump

• Base data dump retrieved from the CRM, billing and HLR / HSS

• Traditionally used for reconciliation between CRM, HLR and HSS

• Primarily RA practice includes no additional insights

2

Basic Subscriber Analysis

• Basic profiling of subscribers using simple analytical practices such as: ARPU Subscriber product preference, service

usage, Moment etc.

3Intermediate Subscriber Analysis

• Daily dynamic subscriber profiling: Usage across all buckets including free

usage Revenue by service and product Monitoring of effective rate Monitoring of FUP

4

Subscriber Insight

• Dynamic profiling and bucketing of subscribers across multiple dimensions: Nature of usage Connected subscribers Location based monitoring Network performance

• Active alerting on inconsistencies noticed• Specific insights on driving factors that fuel

revenues by products, services, discounts etc. from specific subscribers.

5Predictive Modelling

• Compressing of subscriber universe to proactively predict revenue driving factors such as: Subscriber churn Product performance by subscriber Revenue by subscribers to specific

days / months

Fraud Management: Focus Areas

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4G: Fraud Risk Universe

The converged and complex nature of 4G based services offerings, the fraud risk spectrum for a Telco broadens many folds

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Focus Area: Service access security

The Enablers

› Authentication methods different for different services – ISIM, USIM, UserID/Password, Single Sign On etc.

› Device authentication & security is in the hands of the manufacturer

› 3rd party firmwares & apps available to assist hacking

Potential Fraud Risks

› Device or SIM cloning through sniffers, rouge eNodeB, Femtocells or infected WiFi hotspots etc.

› Exposure to malwares, spyware, viruses etc› Deliberate hacking attempts to access unsubscribed

services and content or higher BW and Quality

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Focus Area: Device and Account Takeovers

The Enablers Potential Fraud Risks

› No control over device manufacturers – specially M2M› User equipment is exposed to malicious Apps, URLs,

Malwares etc.› Hacking or custom firmwares of CPE exposes them to

the same level of risk as User Equipments› Consumer’s or technician’s access credential exposure

around Single Sign On services

› Account or device takeover which may lead to: Loss to user & reputation risk Organized DOS attacks AIT or content requests Compromised access security etc.

› Organized IRSF› Snooping & sniffing

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Focus Area: Roaming


› There are still questions around NRTRDE applicability for LTE roaming

› VoLTE in roaming is still an open area› Different operators implementing different roaming

agreements – Non CAMEL, local or home breakout

› Fraud detection in near real time based on B-Party, specially for Voice & SMSes

› Notorious vPLMNs may hide behind issues like lack of standards, SLAs etc.

› Technical issues like signaling errors, which have existed in legacy networks, may creep in in LTE roaming also

2G/3G Roaming Architecture

4G Roaming Architecture

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Focus Area: Bypass Charging


› Various techniques available to bypass charging and gain free access to services like URL masking, Proxy use etc.

› Spoofing or device configuration updates may also help divert charging to someone else

› URL masking using Proxy or VPN› IP or Private/Public User ID Spoofing by IP Packet

header update› MAC Address spoofing through editors› APN modification› Access to user service access credentials

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Focus Area: Internal Frauds


› Many 4G component implementations are still not COTS

› New network elements & Custom O/BSS Custom Solutions being used

› Internal fraud is as wide as access levels

› Benefitting Self› Collusion & Assistance› Commission based› Social Influence› Monetary Gains

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Focus Area: Signaling Frauds


› Comprehensive native security support in diameter protocol is missing

› Security is implemented on top – A non standard patchwork

› The interconnection to partners over diameter or SS7 is following the same path as SS7, which exposes similar or higher risks as SS7

› IP is more popular than SS7, making it more vulnerable

SnoopingSniffingHackingDDos/Brute Force AttackUnauthorized AccessUncompetitive Actions

Artificial Inflation of TrafficMalwarePhishingSpoofingEavesdropping

Addressing the Assurance Risks in 4G

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Facing 4G Challenges: 4 Key Capabilities

4GAnalytics

Tool

Skill Set

Operations

“A far cry from just using you mobile phone for voice and SMS, the thirst for data from the end users of today sends out a clear message that

even the speeds offered by 3G networks fall short of the requirement. So much so that this evolution is slowly but steadily diminishing the

traditional circuit switched voice traffic”

“Majority of the traditional controls that has been used for a 2G & 3G scenario cannot be reused for FM & RA in 4G thereby paving

the way for the evolution in risk mitigation mechanism”

RA & FM functions would require a drastic change in the way they detect & handle risks through upgraded tool, skill set and operations

as a whole, while riding on Analytics.

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4GAnalytics

Tool

Skill Set

Operations

Big Data Compatibility:To deal with the data tsunami which 4G will attract, it is essential for the RA & FM tools to be big data compatible

Agility:Ease of configuration and acceptance of constant change needs to be one of the key capability of RA & FM tool in 4G environment

Integration of RA & FM:4G will further blur lines between RA & FM functions. Hence, the tools need tackle the requirements of information and case sharing

Automation Capabilities:

Reduction of manual efforts will be the key to contain the costs with:

• Automation of most of the RA & FM controls – even periodic audits

• Automated measurement & tracking of operational performance

• Reduction of analysis/investigation time

• Automated control management and assessment

Reporting:

Powerful, easy to use and flexible centralized reporting platform, will be the key to contain investment and cater to growing reporting needs

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4GAnalytics

Tool

Skill Set

Operations

“Analytics will play extremely important role in the success of assurance in 4G environment”

Analytics capability will encompass:o Analytics technology, which is required to

be flexible & powerful, yet user friendlyo Domain knowledge required to drive the

analytics effortso Analytics skill set itself to identify right set

of analytics techniques to implement to solve the problem at hand

Data Scientists

• There will be a need of data scientists on top of current crop of RA & FM analysts

Analytics Outcomes

• The analytics capability should concentrate on the generation of continuous consumable, contextual & actionable insights

Analytics Techniques

On top of segmentation, mining & comparison, prediction and forecasting along with social network analysis will play a major role in creating a robust analytics practice

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4G

Skill Set

Analytics

Operations

Tool

Domain & Cross Industry KnowledgeRA & FM function needs to develop skill set around the following:• Legacy and 4G network along with O/BSS systems• Converged industry knowledge such as banking, content, advertisements etc.

Business KnowledgeBusiness knowledge like product definition, target audience, finance projections, cost benefit analysis etc. required to support RA activities like revenue maximization

Security KnowledgeEssence around security domain to enable interfacing with corporate security teams

Analytics Knowledge• Acquisition of knowledge around analytics techniques and management to

drive the required initiatives• Induction of analytics capability through data scientists is recommended

Recommended Capability Absorption Approaches:

• Training: Resource training on domain, FM & RA practices & analytics

• Skilled Resource Hiring: Hiring experienced skilled resources from various geographical locations at a higher cost to company with the risk of attrition

• External Support: Engaging skilled consultants to assist on an advisory roll that will fill in skill set gaps and provide guidance / direction in day to day activities.

Initially in 4G space, RA & FM practices may be exposed to the scenario of ‘Incident induced learning’ or ‘reactive RA & FM’

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4G

Operations

Analytics

Skill Set

Tool

Operational Agility:Operational agility will be the key to keep pace with the network, product and services introduction and updates

Continuous measurement & improvement:There will be a need of a capability to continuously measure and improve operational performance

Resource management:• 24x7 coverage, at least for fraud will be highly recommended• On-demand upscaling of the resources will be essential to meet sudden

spikes in the workloads

Processes & SoPs:Light, agile and live (running) processes and SOPs will be beneficial in ensuring they are kept up to date and effective at any given point of time

Recommended Capability Absorption Approaches:

• Improvement Program: Vendor partnership based handholding for phased approach to streamlining operations, risk coverage, tool & analytical skill, FM & RA knowledge base and resource.

• Managed Services: Vendor partnership in setting up RA & FM functions through an outcome based program through SLAs driven by industry wide best practices induction

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Questions & Answers

Questions?

Please use send your questions through the ‘Chat’ option in the webinar window.

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Thank You

RA & FM Department

4G Assurance

For more information on ROC Fraud Management, visit www.subex.com

Mail us additional questions/suggestions to [email protected]

Contact your account manager to discuss further

Documents

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