Post on 25-May-2020
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
Multi-party video calling
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
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
Multi-party video calling
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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Complicating the Assurance: The Network & O/BSS Systems
OCS
OFCS
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Complicating the Assurance: The Network & O/BSS Systems
OCS
OFCS
DPI
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Complicating the Assurance: The Network & O/BSS Systems
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
The Enablers Potential Fraud Risks
› 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
The Enablers Potential Fraud Risks
› 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
The Enablers Potential Fraud Risks
› 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
The Enablers Potential Fraud Risks
› 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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Facing 4G Challenges: 4 Key Capabilities
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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Facing 4G Challenges: 4 Key Capabilities
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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Facing 4G Challenges: 4 Key Capabilities
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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Facing 4G Challenges: 4 Key Capabilities
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
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