From Identity to Intelligence: How Shush and Shabodi Are Helping Telcos Monetize Their Networks

Mobile World Insights and Network APIs

Overview of Mobile World Congress (MWC)

• The discussion begins with an introduction to the KASA talk featuring Eddie and Charlie, focusing on insights from Mobile World Congress (MWC) and the monetization of network APIs.

• Charlie shares his experience at MWC, highlighting interactions with customers and partners regarding technology, network APIs, and AI.

Key Takeaways from MWC

• Charlie notes that their partner Arange showcased how network APIs can assist enterprises in manufacturing through simple API invocations.

• There was significant interest in these APIs due to their accessibility for average developers, leading to numerous leads for follow-up.

• The main takeaway is a strong demand for generating revenue through existing network assets.

Eddie's Experience at MWC

• Eddie describes this year's MWC as one of the best he has attended, emphasizing high attendance and positive focus on open gateway initiatives by GSMA.

• He mentions having over 40 meetings focused on mobile operators, indicating a busy schedule filled with discussions about exposing network attributes.

Trends Observed at MWC

• Both speakers agree that this year felt more like a tech show than a traditional telco event, with discussions centered around practical applications of telco technologies.

• They emphasize the importance of understanding how to monetize telco services through innovative uses of network APIs.

Monetization Strategies for Network Operators

• Eddie explains that his company provides mobile operators with platforms to expose their network APIs but notes only 33 out of 1,000 operators have launched them effectively.

• He highlights that 97% of revenue currently comes from network authentication APIs, which are crucial for business operations within telecom networks.

Magic SIM Cards and Network Operators

The Role of Mobile Network Operators

• Magic SIM cards lack the necessary information, which is primarily held by mobile network operators. Regulators are pushing carriers to support SIM swaps, placing them at the center of this ecosystem.

• The problem of managing SIM swaps has been ongoing, but advancements in solutions are emerging. This indicates a growing recognition of the issue's significance.

Quality on Demand in Networking

• A small segment of the market is currently focused on quality on demand, but it is expected to grow significantly. This approach emphasizes customer needs and specific use cases.

• Enterprises and carriers are looking for ways to monetize their services effectively. Quality on demand allows enterprises with numerous cameras to optimize bandwidth usage based on real-time needs.

Dynamic Bandwidth Management

• Many video feeds from cameras often contain uninteresting content, leading to unnecessary bandwidth consumption. Quality on demand can adjust camera settings dynamically based on activity.

• When something significant occurs within a camera's view, the system can request increased bandwidth for higher resolution and frame rates, enhancing efficiency.

Automation and Camera Usage

• Automation relies heavily on cameras across various applications beyond surveillance, such as quality inspection. As automation increases, so does the need for effective bandwidth management.

• The ability to adjust camera quality dynamically not only improves resource utilization but also enhances user experience across networks.

Future Prospects for Network-Aware Applications

• There is optimism surrounding network-aware applications that could revolutionize business operations by integrating various APIs into enterprise logic.

• Partnerships between telcos and application developers are crucial in addressing specific customer needs while navigating challenges in implementation.

Partnership Challenges with Mobile Network Operators

Collaborating with Carriers

• Effective partnerships between technology providers and mobile network operators face challenges due to financial constraints following substantial investments in 5G infrastructure.

• Despite these challenges, collaboration focuses on delivering platforms at no cost to operators through revenue sharing models that benefit both parties.

Revenue Generation Strategies

• Establishing relationships with demand partners can create immediate revenue opportunities for mobile network operators.

• A notable partnership with Twilio aims to accelerate adoption of network authentication APIs via their products, highlighting strategic collaborations that enhance service offerings.

Evolving Security Needs

The Impact of OTP and SIM Swap Fraud

The Emergence of One-Time Passwords (OTP)

• One-time passwords (OTP) became prevalent in the late 2000s due to frequent losses of RSA and Verify dongles, which were costly at $150 each.

• SMS was adopted for OTP delivery despite not being designed for secure financial transactions, leading to vulnerabilities.

Consequences of SIM Swap Fraud

• A significant case involved a $500 million theft through three SIM swaps, highlighting the scale of fraud.

• Personal stories, such as a Canadian woman losing $190,000 in life savings, illustrate the devastating impact on individuals.

• An incident where the SEC's Twitter account was compromised via SIM swap led to false announcements about Bitcoin regulation, causing market fluctuations.

Challenges and Solutions in Mobile Network Operations

• Many mobile network operators lack solutions for securing their systems against fraud; companies like Sush aim to provide these solutions at no cost.

• Predictions suggest that within two years, traditional OTP methods may become obsolete as major players like Google shift away from them.

Shifts in Authentication Methods

• There is a noticeable shift towards email authentication and multi-factor authentication as alternatives to SMS-based OTP due to rising fraud concerns.

• Brands are exploring various methods for delivering authentication securely while mobile operators must adapt quickly to meet demand.

Integration and Revenue Generation

• Companies claim they can integrate platforms into carrier networks within hours, significantly speeding up service deployment.

• Partnerships with operators focus on providing simplified APIs that enterprises can utilize for network-aware applications.

Future Outlook and Success Metrics

Mobile Network Operators and Monetization Strategies

Coexistence of Services

• The speaker emphasizes the coexistence of different services, suggesting that network operators need a monetization platform regardless of whether they choose to buy an F or SCF.

• There is a goal for the next year to engage a specific number of carriers, indicating a strategic focus on expanding partnerships.

Goals for Engagement

• Both speakers share similar goals regarding carrier engagement, aiming for a defined number of carriers actively working with them by 2026.

• The primary focus is on enabling applications to utilize network services effectively while ensuring that carriers benefit financially from these engagements.

Financial Dynamics in Carrier Relationships

• A critical point made is about the shift in how data (specifically CPNI data) will be shared outside traditional boundaries, highlighting the importance of vetting processes for security.

• The speaker argues against unregulated access to carrier data, stressing that only vetted entities should have access to sensitive information.

Protecting Carrier Interests

• The discussion touches on historical arguments regarding pricing control, asserting that mobile networks should dictate pricing due to their investment and maintenance responsibilities.