Telemedia Magazine - Issue 72 by Telemedia Magazine

monetizing connected consumers

IN THIS ISSUE

ISSUE 72

RCS wars

A2P payments

New ways to pay shake up the market

Apple embraces RCS – does everyone win across the messageverse?

Crime and punishment

MESSAGING & ENGAGEMENT

AI to create $32.6trn in marketing performance – and telemedia will see the benefits

How AI reframes the fight against fraud in 2024

IN THIS ISSUE 11 MEET THE PEOPLE... ... Rafal Nowak, HORISEN

12 ANALYSIS: APPLE AND RCS What does it all mean?

16 MEET THE PEOPLE... ... Ashraf Shrouf, 3ANet

18 CRIME AND PUNISHMENT How AI is reshaping antifraud

20 THE STATE OF MOBILE How mobile ads are winning

22 SHIFTING GEARS

Embracing omni-channel marketing

AI is impacting every facet of life, everywhere. In telemedia, the change it brings is the glue that now brings all areas of the sector together – and it makes for interesting times. There has been a growing consolidation in telemedia in the past three years, with messaging, payments and marketing – and cyber security (see page 18) – all coming together

to create a single compelling service. And that is all bound up in AI. The impact of AI on data collection, han>> 3 BILLING & PAYMENT

24 GDPR TURNS FIVE Has it worked?

26 HOW MENA BROKE THE BANK The region that keeps on booming

28 5G: DESIGN FOR LIFE?

How 5G has changed the world

29 5G ADVANCED

Taking the first steps towards 6G

30 5G REDCAP

The rise of the connected devices The rise of A2A payments and what it 31 MEET THE PEOPLE... ... Rabih Jreish, Mobile Arts means for carrier billing and alt.payments

Application-to-application or account-to-account (A2A) payments are growing in popularity globally, with services springing up in a variety of markets, propelled by the ease with which they allow consumers to pay for things. Account-to-account payments are electronic transfers of funds from one bank account directly to another. Fuelled by instant banking, which allows accounts to instantly move funds, A2A payments are simple and almost friction free, allowing a payer to simply open

their banking or payment app, scan a QR code and move the money to the payees account. According to The 2023 Global Payments Report, A2A payments are projected to grow >> 4

More news, views and analysis at www.TelemediaOnline.co.uk

34 MEET THE PEOPLE...

... Marco Priewe, InternetQ

COMPANIES YOU SHOULD BE DOING BUSINESS WITH! See page 32

MESSAGING & ENGAGEMENT

AI marketing

<< 1 dling and subsequent marketing action cannot be overstated. Pre-2021, data platforms could collect and gather data and, with manual intervention, crudely segment it to produce a spreadsheet for the marketing department. It was slow, it was inaccurate and it led to rubbish marketing. AI changed all that in an instant. As businesses saw that ChatGPT and its ilk actually worked, AI became a very powerful tool – but not for creating content, though it does that too – but to process all this data. AI and Machine Learning are on track to generate between $1.4trn to $2.6trn in value by solving marketing and sales problems over the next three years, according to the McKinsey Global Institute. The analyst believes that, through automating processes such as data analysis, campaign development, along with certain content creation tasks, marketers get back more time to focus on things requiring human discernment—like strategy implementation—which leads to increased performance of the business’s marketing activities overall. Now AI can sift through data at a rapid rate and spot groupings and subgrouping trends that no human could.

And it can write the marketing copy to go with it. This clearly impacts marketing and promotion of VAS services (see below), but it also impacts messaging and payments. Improved data leads to better marketing, which in turn needs a better and more immediate marketing channels – which makes rich business messaging services suddenly much more compelling. Better, more individual data means more personalised marketing, which needs to come through a ‘personal’ channel such as a mobile messaging. This is just what will drive the uptake of RCS (see page 8). While Apple’s buy-in to the Googlefounded messaging tech helps make it more compelling, it is the need for ubiquitous rich business messaging derived from this improved, AI-backed understanding of data that will really drive its uptake and that of all other rich messaging formats. The rich messages that this spawns also have another telemedia trick up their sleeve: the message can be transactional. Shoppable messages – with perfectly AI-honed marketing copy – can lead directly to sales. In theory, it should be so compelling as to drive the recipient to immediately engage and buy. Making that shoppable experi-

ence part fo the message is the ultimate goal. And one of the emerging ways in which to make this happen is to add DCB into the mix. For digital content and VAS sales this is a no-brainer, as it works already and is quick and easy to do. However, moves in Europe to make DCB a tool for buying physical goods too (see page 1 and 4) opens this up still further.

THE COOKIES CRUMBLE

AI is also driving a change in search and performance marketing, which telemedia is also set to be impacted by. Cookies are crumbling as a means of garnering data, so brands, service providers and merchants are having to rely on other ways to gather data. Many retailers and other customer facing platforms – be they B2C or B2B or B2B2C – have a wealth of first party data and many are starting to use that to develop their own media networks, selling advertising on their own sites. This has become the beginnings of a new trend among large retailers, which are creating their own retail media networks to capitalise on this. For VAS providers this is like affiliate marketing on steroids, giving them access to well segmented and analysed first party data. It

might be more expensive than ‘traditional’ affiliate marketing, but in theory it could well be much more accurate. This is also being compounded by AI’s role in search. Gone are the days of consumers putting in key words into search engines. Now we all type in questions – often very specific ones, such as “what are the best sunglasses for playing golf in the Bahamas” – rather than looking for a brand. This has a profound effect on how all companies can have their offerings discovered, making ‘search’ a long-tail business, not one that relies on who can pay the most for key words. This – which will be the subject of a special Google-backed session at Telemedia8.1 LIVE – is going to be something that anyone looking to generate traffic needs to be aware of and something that is going to totally reshape the marketing of telemedia entertainment services. Again, this relies on AI. And there you have it: AI is no longer a thing we need to talk about, it is the bedrock on which the whole sector will soon be operating and it is what will power a revolution in data management, marketing, messaging, advertising, search, traffic generation, customer services and probably even authentication.

Driving value added services for voice and mobile

BILLING & PAYMENT

A2A payments

<< 1 by 13% through 2026, resulting in a global ecommerce market size of almost $850 billion. Today, A2A payments are the leading online payment method in Finland, Poland, Nigeria, Malaysia, Thailand and The Netherlands. The growth of mobile payments – and the resultant decline in card payments – has seen A2A grow rapidly. In developing and under-banked markets, where mobile phones are more ubiquitous than cards, A2A has started to gain a real foothold with those that are new to having a bank account. In India, the Unified Payments Interface (UPI), the local A2A payment tool, has seen exponential growth. Similarly, Pix in Brazil has also grown rapidly. The tie-in with the biometrics on phones has also seen these services viewed as being very secure. In Europe, Apple Pay and Google Pay dominate, but these newer markets are ripe for homegrown alternatives that make digital payments really simple. For merchants, A2A offers

some real advantages. It is simple to implement and, being simple for customers to use, it has a really high conversion rate. It also offers substantially lower transactions costs compared to pretty much all other payment mechanisms. Above all it is instant movement of funds, which is great for cashflow and guarantees they get paid.

IMPACT ON DCB

This could be seen as a potential threat to carrier billing. DCB has thrived in these very markets – particularly in low-banked Africa and Middle Eastern markets as it offers a rapid and easy way to pay for goods consumed on the phone itself. It has, however, always fallen short when it comes to purchasing physical goods. A2A payments neatly fill this gap in some markets where there are growing numbers of middle class consumers who are starting to earn enough to want a bank account. And once these people are on-board with A2A, then it

could well usurp DCB. But the news isn’t all bad for DCB. Many markets still see DCB as the simplest way to pay, particularly for the vast majority who don’t have a bank account – they can convert their cash to mobile credit, from which they can buy things. Also, in the highly evolved European market, there are already significant advances in DCB – especially in Germany – towards seeing carrier billing become a physical and quasi-physical tool for payments. As we reported in the last issue, mobile payment and performance marketing provider InternetQ has become one of the first German providers of carrier billing solutions to receive permission from the German Federal Financial Supervisory Authority (BaFin) to provide payment services. As a regulated payment institution, the permit allows InternetQ GmbH to offer even more comprehensive services related to payment transactions from a single source. For example,

More news, views and analysis at www.TelemediaOnline.co.uk

non-digital goods such as electricity, ride share offers or licensed sports betting and casino services can also be settled via InternetQ GmbH. Similarly, fellow German payment provider DIMOCO has also been granted permission to use carrier billing to bill for bike hire. German MNOs have also got together to give DCB a brand name and a logo in the country to help educate consumers in its use and veracity. The beginnings of a third Payment Services Directive – PSD3 – in Europe is also hoped to pave the way for an expanded role for carrier billing in the payment landscape in the coming years. The potential for bringing DCB into shoppable rich business messages via RCS is also likely to give the payment channel a boost. So, while A2A is growing and is likely to rapidly become a key payment tool worldwide, DCB still has a very large and active niche to fill in many of the world’s markets and will continue to be a key payment tool for many years to come

BILLING & PAYMENT

There has been a lot of change in the world of payments and fintech over the past few years – much of it driven by PSD2 and Open Banking – but experts are predicting more to come in 2024. Elizabeth Streeter reports Consumers are looking for more efficient and easy ways to pay, while merchants, retailers, content providers and others across the telemedia sector all have a vested interest in making payments as flexible and simple as possible. After all, the easier it is to spend, the more they will buy. So, what does 2024 have in store for the fintech sector and what does this mean for telemedia companies? According to Juniper Research, there are a number of factors that are reshaping payments, all of which will impact how telemedia and VAS can be billed for – and how consumers will want to pay. These include: • Account to account (A2A) payments will hit the mainstream, allowing consumers to move money directly between accounts without the need for payment instruments such as cards. A2A payments will become a more common challenger to card use in ecommerce and for funding wallets. This development will cut out the middleman and allow for more efficient payment methods. • Central Bank Digital Currency (CBDC) cases will emerge in practise. Digital currencies

The changing face of A2P issued by a central bank as opposed to a commercial bank will enable CBCDs to be more of a part of the developing banking world. • Generative AI in banking can transform spending Insights. AI will enable banks to offer more personalised experiences to clients and can help to reduce risk by more intelligently analysing credit scores among other relevant data. It can also detect fraud, minimising risks to banks and allows them to make more informed decisions when approving loans. • Digital Identity adoption through digital wallet integration will allow for many market developments, with particular improvements in linking digital wallets and digital identity. Having the potential to boost efficiency, minimise fraud and establish more secure connections. • AML (Anti Money Laundering) tools will be increasing used to help prevent financial crimes and in assisting companies in meeting legal requirements. AML tools will be increasingly leveraging AI as alternative payments are complicating compliance. In 2024 AML tools will be rapidly evolving to ensure compliance is maintained,

as alternative payments are becoming more widespread and popular. • Acquiring more sustainable outcomes to problems is also going to have a major impact on fintech developments in 2024. As Fintechs strive for greener solutions, top of the agenda will be ESG (Environmental, Social, Government) compliance. Fintech is supporting new initiatives from service providers and is working towards addressing their ESG requirements. This should help to positively impact the environment. • Value-added services will flourish, whereas the US Federal Bank-backed faster payments inititative FedNow may fail to match the instant payments successes seen in Europe, it will lead to important innovations and development in banking. It won’t, however, be receiving the same amount of growth as seen in systems such as India’s UPI (the Unified Payments Interface) and Pix, the instant payment method in Brazil). • Mobile financial services are going to accelerate the transition to more advanced banking services, reducing reliance on P2P (person-to-person) transactions and making money

More news, views and analysis at www.TelemediaOnline.co.uk

transactions more efficient. • Checkout Innovation is on the rise, causing biometric in-store payments to surge. Catalysed by developments in the market, these biometrics have the potential to revolutionize the consumers daily checkout experience. • B2B BNPL (business-to-business, buy now, pay later) are to provide ‘critical’ financing for SMEs (Small-Medium Enterprises) BNPL scheme. It has real potential to fill a lingering gap in the market, and this should ensure the continuance of SMEs having access to their much-needed financial aid. Commenting on the predictions, Juniper Research’s VP of Fintech Market Research, Nick Maynard, says: “The fintech and payments market is undergoing fundamental changes, with new payment methods and different business models threatening to completely uproot existing operations. Stakeholders must fundamentally reassess the viability of their offerings, and build ambitious roadmaps for future developments, or they will be left behind by more agile competitors.” Elizabeth Streeter is a freelance writer

MESSAGING & ENGAGEMENT

Message wars Apple’s embrace of RCS is not only good news for RCS, but elevates the entire rich business messaging market to new heights – it might even also end well for SMS. Paul Skeldon reports The news, late last year, that the next update of iOS will include support for RCS has ignited the rich business messaging market like nothing before it. Suddenly, rich business messaging – RCS or otherwise – is top of the agenda for those looking to developed interactive, AI-powered, transactional marketing messages. Or even those just wanting to do better customer service. So, what does the telemedia industry make of the move? Nick Lane, Chief Messaging Officer, Messagologist and Founder, Mobilesquared, says: “It’s surprising and unsurprising in equal measure. Apple was under pressure from higher powers to open up its (i)messaging borders, and Google has been trying to force the interoperability issue with Google Messages/RCS for years. While it means a more consistent messaging experience between Apple iPhone users and Google Android users, the impact this announcement has on business messaging is yet to be understood. The brand and enterprise verification process alone already throws up numerous implications and issues for each party. Regardless, if this is the first, albeit, tentative, step towards a more unified business messaging platform to help drive growth – and brand and enterprise adoption of rich messaging – then it can only be a great thing.”

RCS takes on OTT and SMS – and everyone wins

Rafal Nowak, Business Messaging Director at HORISEN (see page 31), believes that it will exert a profound influence on A2P messaging, reshaping how businesses engage with their customers. According to Nowak, “One compelling argument revolves around the enhanced user experience facilitated by RCS. Traditional SMS lacks the interactive and multimedia capabilities that modern consumers have come to expect from digital communication channels.” He believes that RCS bridges this gap by offering features such as rich media sharing, suggested replies, and interactive buttons. With Apple’s acceptance of RCS, A2P messaging platforms gain access to these advanced functionalities, enabling businesses to create more immersive and engaging interactions with their customers. This heightened level of interactivity not only enriches the user experience but also drives higher engagement and response rates for A2P messaging campaigns, he says. More tellingly, while traditional SMS typically relies on per-message charges or bulk messaging fees, RCS introduces a range of monetisation possibilities, including branded messaging, interactive experiences and enhanced customer support services.

“With Apple’s acceptance of RCS, businesses can leverage these monetization features to generate additional revenue streams and maximize the return on investment from their A2P messaging campaigns,” says Nowak. “Moreover, by offering consumers a more seamless and integrated messaging experience, RCS has the potential to drive higher customer satisfaction and loyalty, further enhancing the value proposition for businesses and incentivizing continued investment in A2P messaging initiatives.”

BOON FOR OPERATORS

Juniper Research’s latest study into the messaging market also points to this expansion of RCS to being a payday for operators. The rich features of RCS, including brand verification, branded messaging, and rich carousels, will allow operators to compete with leading OTT messaging apps through RCS’ improved security and capabilities. This will foster consumer trust to engage in more sophisticated messaging use cases, such as conversational commerce, it says. The analyst believes that global operator revenue from rich business messaging traffic will grow from $1.3bn in 2023, to $8bn in 2025 – a massive 500% rise. According to its data, operators can expect to earn $57.5bn from A2P

More news, views and analysis at www.TelemediaOnline.co.uk

SMS in 2024, $3.5bn from A2P RCS and $381m from A2P OTT messaging (see chart). Much of this growth will be driven by RCS generating new interest in rich business messaging and that in itself will have an impact on SMS. Research author Gatford notes: “For the first time, the value of SMS is being questioned by enterprises. Operators must act quickly if SMS fraud and high prices cannot be resolved. Apple’s introduction raises the profile of RCS, a technology that has historically been hindered by a lack of support and can become a substitute for SMS business messaging traffic.”

MESSAGING GROWTH

RCS may look like adding competition to existing messaging services such as SMS and WhatsApp, but many in the industry believe that it actually strengthens all business messaging. Juniper’s research suggests that, despite a fall in OTT messaging’s global market share of conversational commerce spend from 53% in 2024, to 45% in 2028, OTT messaging apps will remain the dominant channel for conversational commerce. Much of this spend will be driven by the advanced capabilities of OTT messaging apps, says the report, including interactive calls to action and rich media.

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MESSAGING & ENGAGEMENT

These features, it predicts, will enhance the consumer experience; attracting high-spending users to engage in further commerce activity.

OTT messaging apps, being standalone platforms, can move quickly to integrate new technologies, including AI-based personalisation for cross-selling

and upselling opportunities. This will be imperative in highspending industries such as retail, as OTT messaging apps will be deployed as part of an omnichannel marketing strategy alongside messaging channels like RCS. It is also unlikely to have an immediate impact on SMS. Juniper believes that SMS is set to account for 70% of mobile-based authentication spend by 2025 – despite SMS authentication traffic predicted to only rise 4% next year (see panel).

BRACE FOR IMPACT

Source: Juniper Research, Global A2P messaging market 2024 to 2028]

However, Fabrizio Salanitri, CEO at HORISEN, believes that RCS is poised to have a notable impact on other messaging channels, particularly WhatsApp. “[One] significant advantage RCS holds over OTT messaging platforms like WhatsApp is its integration with mobile network operators’ infrastructure, potentially offering enhanced data security and privacy,” he explains. “While WhatsApp encrypts messages end-to-end to protect user privacy, concerns have been raised about its data-sharing

SMS still a winner for authentication – for now Despite the rise in rich business messaging, SMS still has a big role to play in the messaging market. It may be tainted by AIT and other frauds, but it still underpins authentication traffic. The latest data from Juniper Research finds that SMS is set to account for 70% of mobile-based authentication spend by 2025, beating all others such as flash calling and APIs – and despite SMS authentication traffic predicted to only rise 4% next year. The analysts predict that, despite market pressures, including rising SMS fraud and increasing termination charges, SMS will remain enterprises’ most used technology to authenticate and identify their users over the next five years. The new research, which assessed technologies including SMS, flash calling, verification APIs and mobile identity solutions, forecasts SMS traffic will reach 1.4 trillion messages by 2025; growing from 1.2 trillion in 2023. However, operators face challenges from thirdparty services, the report says. It has identified

the launch of third-party authentication services over OTT apps as the biggest threat to operators’ authentication SMS revenue. As SMS prices continue to rise, the value of the service amongst enterprises will decline, with some businesses already migrating their authentication traffic to OTT messaging applications. Over the next five years, the report forecast operators will lose $2.8 billion of authentication revenue to OTT channels, including WhatsApp and Viber. To minimise losses, operators must urgently reassess SMS pricing against competing channels, including OTT messaging apps, or risk losing further authentication revenue. Flash calling, in which a missed call replaces a monetisable SMS message, has experienced significant traction over the past two years. However, operators now block this through partnerships with third party messaging firewalls with the aim of keeping authentication traffic over established SMS channels, further increasing the reliance on SMS for authentication.

More news, views and analysis at www.TelemediaOnline.co.uk

practices with parent company Facebook and its susceptibility to security vulnerabilities. “In contrast, RCS leverages the existing security measures implemented by mobile operators, such as network-level encryption and secure authentication protocols. This integration with mobile networks could instill greater confidence among users and businesses regarding the security and privacy of their communications.” Salanitri believes that, as RCS gains traction as a secure messaging channel, businesses may gravitate towards it for sensitive communications, such as financial transactions, personal information exchange, or healthcarerelated interactions. The inherent security features of RCS could position it as a more trustworthy alternative to OTT messaging platforms like WhatsApp, particularly in industries where data security and regulatory compliance are paramount. Another compelling argument for RCS’s impact on other messaging channels is its native availability on mobile devices. Unlike OTT apps that require users to download and install additional software, RCS is integrated directly into the default messaging app on many Android devices, offering a seamless and familiar user experience. This native integration ensures widespread accessibility to RCS features without the need for third-party apps or additional installations. “In contrast,” says Salanitri, “platforms like WhatsApp require users to download and install the app separately, potentially creating barriers to entry for users who prefer to use native messaging apps or who are reluctant to install additional software due to storage constraints or privacy concerns. With RCS being pre-installed on many Android devices, users may find it more convenient to use RCS for everyday communication, gradually shifting away from standalone OTT messaging apps like WhatsApp.”

MEET THE PEOPLE

Meet the

PEOPLE

Rafal Nowak, Director Business Messaging at HORISEN What does your company do? HORISEN provides enterprises, telecoms and messaging aggregators with a stack of platforms dedicated to running a global trading and routing business in the omnichannel sphere. Its clients are the leading telecom networks, global aggregators and enterprises on several continents. Which countries or regions do you feel represent the greatest opportunity for your telemedia services in 2022? We look at this aspect from a broader perspective. European Union is our natural first-entry area, but we approach many leading economies in Africa, Asia and the Americas with success. What have been the biggest challenges faced by the industry since 2020? We see the diversification of communication channels as the main stopper for a more impactful digital change in conversational commerce. HORISEN’s Business Messenger is bringing the omnichannel orchestration under one hood but we are at the beginning of a long road. What new opportunities have arisen as a result? We see a faster pace in the activation of a unified RCS landscape across the globe. This Google-backed technology is slowly growing into a stronger ecosystem, which will be soon

competing with the likes of WhatsApp and Viber. Is SMS future proof? The coverage and reach of SMS/ MMS is still responsible for full order books and solid income. Anyway, margins are continuing to decrease and we notice slowly moving market consolidation. When it comes to this channel, there is a danger that the big volumes might be controlled by the few leading aggregators. Medium and small players are well advised to look for a more diversified business model. What’s the secret to optimising engagement, sales revenues and retention? Channel diversification and clever software products in automated omnichannel communication.

using the term ‘CPaaS’ we also consider our combined software portfolio as a ‘Messaging Ecosystem’. The fact that HORISEN doesn’t engage in channel trading or aggregating, positions us a trusted partner – not as a competitor – to all potential clients. Be it enterprises, aggregators or telecoms. What are the biggest challenges of offering CPaaS? The biggest challenge is to remain innovative and rediscover the chances in the ever-changing messaging landscape. Keeping the margins high requires new models and adapting to emerging new demands of various industries.

On a more personal level, what is the most inspiring piece of advice that has seen you through life in business to this day and who gave that advice to you? Once, an ex-sales director of mine told me that he feels best when he doesn’t see me around – meaning, in the office. In his eyes a true sales manager should be ‘out there’ with the clients. Despite the post-pandemic communication shift, I’m convinced that a personal relationship is the best foundation for serious business. No matter in which industry. In the next 12 months what key technical developments or innovations do you feel will have the most positive impact on mCommerce (VAS / mobile payments / marketing)? Simplicity in the UX of omnichannel orchestration platform will change the perspective on the side of big enterprises. Mobile payments, VAS and a big part of marketing will discover conversational commerce and we will see the rise of a new consumer behaviour.

What other messaging platforms do you offer and why? HORISEN offers a complementary stack consisting of a trading/ routing SMS platform, SS7 and MNP solutions and an omnichannel Business Messenger. All platforms communicate with each other and can be installed as one symbiotic ecosystem. Do you consider yourself a CPaaS (Communications Platform As A Service) provider or any other variant of the “XXaaS” service provider model? HORISEN doesn’t play by any standardized rules and besides

E PEOPLEpe?ople’, H T T E E M O T T eet the WAN company to ‘m e your estionnaire, If you would lik in our simple qu l fil is do to ils all you have For more deta and send it in. ot sh ad he a take om ine@w tevent.c contac t: gerald

Driving value added services for voice and mobile

MESSAGING & ENGAGEMENT

ANALYSIS

What Apple’s RCS embrace means for messaging With Apple announcing on 16 November 2023 that it was, after all, going to support Rich Communications Service (RCS) messaging the world of business messaging changed dramatically. But what does that look like? We asked Molly Gatford, Research Analyst at Juniper Research, for her thoughts With Apple announcing on 16 November 2023 that it was, after all, going to support Rich Communications Service (RCS) messaging the world of business messaging changed dramatically. But what does that look like? We asked Molly Gatford, Research Analyst at Juniper Research, for her thoughts On the 16th of November, Apple announced that it would support the universal profile for RCS (Rich Communication

Services) messaging. RCS can be defined as an operator-led messaging protocol, which allows for the sending of rich media and improved functionality over SMS. Support for RCS is expected to be available on iPhones following a software update starting in 2024. This follows new legislation in the EU, the DMA (Digital Markets Act), coming into effect in March 2024, which is designed to harmonise platform regulation across the EU.

A snapshot of RCS Business Messaging and where it fits in the market RCS Business Messaging is considered the next step in the evolution of SMS. It’s used for both P2P and A2P communication and combines the reach of SMS through MNOs with rich-messaging features for elevated customer experiences, writes Infobip. For businesses the messaging platform offers a range of enhancements over SMS, including verified sender status, custom branded messages, rich media – including text, images, GIFs, audio, video, documents and location – and offers suggested actions, as well as carousels. So how does it stack up against the other rich business messaging platforms out there – SMS, RCS and Apple Messages for Business (AMB)? SMS

RCS

AMB

Available on all devices?

Yes

Android, soon Only iOS on iOS devices devices

Type of messaging

P2P, A2P, P2A P2P,A2P,P2A

P2P, P2A

Rich media

Yes

Branding

Yes

Character limit

160

160+

File sharing

Yes

Internet connection No

Yes

Yes Table courtesy of Infobip

However, iMessage is still expected to be available to consumers for communication and is still a more secure and privacy-friendly messaging channel. RCS will therefore exist separately from iMessage, while SMS and MMS will be used as fallback when RCS is not available. However, it is expected that enterprises will be able to use RBM (RCS Business Messaging) via iOS devices towards the end of 2024. The RCS standard is supported by Google and is currently available on Android devices. At MEF’s RCS World in 2023, Google announced that there were 1.2 billion monthly active RCS users, and this number is expected to increase substantially following Apple’s announcement.

BETTER FOR ENTERPRISES

Apple’s intention to support RCS on its range of iPhones greatly increases the value proposition of RCS to enterprises. This is because the total addressable user base will increase substantially, and enterprises will now be able to communicate with a large proportion of their customers. SMS prices continue to increase, with AIT (Artificially Inflated Traffic) fraud being a key contributing factor to this. As a result, the demand for SMS is plateauing, with enterprises expected to lose out on revenue to OTT players. Therefore, it is likely that RCS business messaging will emerge as a key strategy for operators to maintain business

More news, views and analysis at www.TelemediaOnline.co.uk

messaging revenue growth. RCS is available on the majority of tier 1 operators globally and support for the messaging channel is well established in developed countries. The immediate boost to the addressable RCS userbase following Apple’s support will increase the potential monetisation opportunities for operators. This will also result in more operators supporting RCS as a technology.

THE IMPACT ON MOBILE MESSAGING MARKETS

The increase in the price of SMS has resulted in enterprises paying higher prices for mission-critical messages such as MFA (Multfactor Authentication) and OTPs (One time Passwords). The rise in AIT fraud is culminating in revenue losses for operators, as enterprises seek other alternative authentication technologies that provide greater value. The availability of other channels for authentication, such as OTT business messaging and flash calling, will continue to threaten overall business messaging revenue. However, as RCS becomes a more universal messaging channel, this will be a key method to combat operator losses. RCS basic messages will play an important role in increasing the adoption of RCS by enterprises initially, as these messages have price parity with SMS with the increased functionality of RCS messages. However, to grow RCS business messaging against the threat of OTT messaging, rich media capabilities, such as images and carousels, must be promoted. Unlike SMS, there is currently no standard pricing model

between operators for RCS In order for RCS to grow, RCS pricing should reflect the pricing of SMS, with a price per-message model. This will increase the familiarity of RCS, in a similar fashion to established SMS practices, which will be key to attracting highspending enterprises that operate on an international scale.

THE GROWTH OF RCSCAPABLE USERS

Juniper Research anticipates that following the roll-out of RCS on iOS devices, the total number of RCS-capable subscribers will reach 7.6 billion by 2028. Juniper Research has used inhouse data on the total number of RCS-capable subscribers, as well as the proportions of Android and iOS devices in each country in order to predict the growth of RCS-capable subscribers globally. This also included data on the operators that have

Number of RCS-capable Subscribers with and without Apple RCS Support (m), 2023-2028 (Juniper Research)

launched RCS in 2023. Through the support of the RCS universal profile on iOS devices, this is expected to increase the total addressable market by 36.7% compared to without Apple support, with more than 6.3 billion capable subscribers by

2024. The rise in the total addressable market for RCS increases the potential revenue for both CPaaS players and mobile messaging vendors, particularly those that are already established in the RCS market. Enterprises are

expected to adopt RCS as part of an omnichannel approach to communicate with their customers. Juniper Research believes that RCS will become a primary channel for enterprises due to the large addressable user base, which will surpass the user base of any OTT messaging platforms. Currently, WhatsApp has a higher number of active users globally than RCS, but, once Apple supports RCS, the number of active users is expected to be much higher than any single OTT app. The support of RCS on Apple devices will also encourage operators to launch RCS, due to the increased revenue potential. This will further increase the number of mobile subscribers that are capable of receiving RCS messages. Molly Gatford is a research analyst at Juniper Research www.juniperresearch.com

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MEDIA & CONTENT

Bridging the streaming gap:

the niche advantage Julia Dimambro, CEO of Seriously Fresh Media, takes a look at how targeted content, good data and niche markets can create a power content offering – even in the age of Netflix and the rest of the ‘Big 5’ In the dynamic realm of streaming platforms dominated by industry giants such as Netflix, Prime and HBO, the pursuit of the broadest possible appeal has been the central strategy to date. These streaming titans engage in an ongoing battle to outspend each other to create the blockbuster title that will have us all talking, often resulting in a saturated market where differen-

tiation becomes a challenge. As we have witnessed, even the allure of mega-series such as Game of Thrones, or Squid Game can only sustain subscriber interest for a limited time. This begs the question:iIs there an untapped avenue for smaller players to thrive by offering content tailored to niche interests? The “Big 5” streaming platforms — Prime, Netflix, Paramount+,

Hulu and Max — operate by casting a wide net for content to appeal to the largest audience. They invest heavily in a diverse range of content genres designed to appeal to multiple cultures, ages, and interests, and maximise long-term subscriptions. However, the downside of this strategy is evident in the struggle to retain subscribers when offerings are perceived as interchangeable.

TARGETED CONTENT

In contrast to the one-size-fitsall model of major streaming

platforms, smaller players, such as clients of Seriously Fresh Media (SFM), are capitalising on the commercial potential of specialised entertainment services. These services curate content around specific hobbies, interests, or genres, providing a more targeted and personalised viewing experience. Whether it’s cooking, comedy, sports, or children’s content, the aim is to carve out a niche and secure a dedicated, loyal audience.

NICHE AUDIENCES

Even within the major streaming platforms, we can see clear consumer preferences for specific content verticals. This strengthens the case for targeted niche entertainment services for MVAS and offers great commercial potential for Telemedia companies if you don’t have a Netflix budget for original content and marketing. With the global market size

The power of video revealed The true power of video content – long, short, mainstream and niche – is clearly demonstrated by YouTube. According to experts at Productivity Spot who analysed web traffic data from SimilarWeb across more than 1000 of the most popular websites worldwide, YouTube lies way out in front. The study found that from a traffic perspective, YouTube was second only to Google, which came out on top with a score of 72.75 out of 100. Google has a staggering 3.19 billion unique users per month. However, each user spends ‘just’ 10 minutes 37 seconds on the search engine per visit. For the study. Productivity Spot ranked each website according to an index, which considered the number of monthly visitors, the amount of time each user stays on the site, the number of pages each user views, its accessibility score, as well as the bounce rate – the percentage of users who click off after the first page. YouTube, on the other hand, was revealed as the website that people spend the most time on, with an index score of 65.56 out of 100. It clocked a staggering 33.57 billion visits per month, making it the second most

visited website in the world behind Google. An impressive 1.97 billion visits each month were found to be from unique users, which equates to every person visiting the site 17 times per month on average. YouTube also had one of the longest visit durations of any website, with users spending 20 minutes and 22 seconds on average per session. Facebook ranked third overall behind Google and YouTube, with an overall score of 62.07 out of 100. The social media platform generates 17.2 billion monthly visits per month on average, with 1.49 billion being visits from individual users. Users were found to spend approximately 10 minutes 36 seconds per visit to the site, and typically viewed 8.65 pages of content per visit. Placing fourth is Wikipedia with a score of 62.07 out of 100. The online encyclopedia generates 4.41 billion visits per month across its user-generated subpages. Users spend an average of 3 minutes 53 seconds on the site per visit, a significantly lower than that of Google, YouTube and Facebook. Rounding off the top five is Instagram with a score of 59.95 out of 100. Around

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6.68 billion monthly visits are made to the media sharing site each month from approximately 1.11 billion unique users. Users spent around 8 minutes 17 seconds on the site, excluding time spent in app. Making up the remainder of the top ten are X (Twitter), Whatsapp, Yahoo, Amazon and Discord. Jim Markus, Director at Productivity Spot comments on the study: “YouTube seems to have captured our attention the most, with the average user spending more than 20 minutes watching content and browsing the platform each time they visit. The average duration of a YouTube video is estimated to be 4 minutes 24 seconds, meaning that each user is watching 4.6 videos on average per desktop visit. “Surprisingly, TikTok failed to break the top twenty, ranking 60th overall, which could be due to most users browsing TikTok using the app rather than web-based or mobile browsers. Despite the app’s addictive nature, users were found to spend a surprisingly brief 3 minutes and 47 seconds on the site, when visiting from a browser.”

expected to reach $630m by 2028, up from $393m in 2022, this niche approach for MVAS will surge in commercial opportunity, suggests data from Research Report World. Whether you’re a marketing company or a streaming platform, data on audience preferences significantly impacts profit margins. Creating targeted

content services for specific demographics reduces upfront risks, minimises marketing costs and enhances the likelihood of securing subscribers from the intended audience.

BUILDING LOYALTY IN NICHE SPACES

By offering niche products and channels, engaging audiences

and fostering loyalty becomes not only easier but also more cost-effective. SFM’s approach revolves around providing curated solutions that transcend mainstream offerings. By creating a space where viewers feel understood and catered to, smaller platforms can cultivate a dedicated following that values the uniqueness of their content.

UNLOCKING NEW REVENUE STREAMS

Distribution of spending on original shows on subscription video-on-demand (SVOD) services worldwide in 2023, by genre. Source: Statista.com

In an industry where giants battle for supremacy, the rise of niche content presents a compelling alternative. Companies unburdened by the need to appeal to the masses can focus on creating content that resonates deeply with specific audiences. The success of niche streaming services lies not just in providing content, but in fostering a sense of community and understanding among viewers.

As we navigate the evolution of streaming, it’s evident that the one-size-fits-all model is expanding to allow smaller, more agile and innovative companies to thrive by providing diversity and specificity that sits comfortably alongside the ‘Big 5’. And whilst they continue their quest for the next global phenomenon, the real growth opportunity in 2024 may lie in the hands of those who dare to explore this more targeted strategy. If you don’t have a Netflix or Prime budget for content, then success and customer engagement lie in precision over mass appeal. We can help ensure you have the right content for your audience. Julia Dimambro is CEO of Seriously Fresh Media www.seriouslyfreshmedia.com

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MEET THE PEOPLE

Meet the

PEOPLE

Ashraf Shrouf, Managing Partner, 3Anet What does your company do? 3Anet is a leading mobile billing aggregator enabling other companies to take advantage of its DCB (Direct Carrier Billing) connectivity with telco operators in MENA region. Over the past 20+ years, 3Anet has built a strong track record of success by providing first-class services to its partners, including service providers and MNOs, leveraging its team’s expertise and passion in payments, VAS and content. Which content and/or applications do you see being the most likely to benefit from telemedia billing technologies? Offering applications and content using the cutting-edge technologies such as Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI) were the best assets. Do you think that Direct Carrier Billing can become mainstream and in which markets? Yes, for sure, especially in Gulf region and more specifically in Saudi Arabia. How do you balance payment flows, operator relationships and customer satisfaction? As an aggregator, our focus is on serving three key customers – operators, merchants, and endusers. We believe in streamlining payment flows through collaboration with operators to ensure satisfaction for the enduser.

What major factors do you think will impact the future development of mobile payments and which other payment options represent the biggest threat? Aligning strategies and plans with operators and service providers consistently influences the future development of mobile payments. I hold the belief that direct banking payments will always possess the potential to surpass digital payment methods if it is designed in simple flows for the end users.

array of digital services that touch various aspects of our digitalised lives.

Which specific VAS verticals are you expecting to have a great year and why? VAS categories and sectors should be enhanced and go beyond the basic services provided by operators to have great future, and I think the below verticals has an opportunity in the VAS future: m-commerce, health services, education services and IoT.

In the next 12 months what key technical developments or innovations do you feel will have the most positive impact on mCommerce (VAS / mobile payments / marketing)? There are many potential key

How might you answer that same question in five years time? VAS has indeed undergone significant transformations in the past five years and the trajectory suggests further evolution in the next five years. The dynamic nature of technology and consumer expectations contributes to the continuous adaptation of VAS. Looking ahead, it’s plausible that VAS will evolve into a broader concept, encompassing a comprehensive

What’s the most effective business model for an mVAS customer acquisition strategy? The most effective business model for an mVAS customer acquisition strategy depends on various factors, including the target audience, the nature of the services, and the market conditions, so it is challenging to consider a specific model as the best one.

innovations that might positively impact the VAS business in the coming months like: Enhanced AI and Machine Learning Integration, but we need to remember that the technology landscape is dynamic, and unforeseen innovations may also shape the VAS business in the coming months. Your words of wisdom: On a more personal level, what is the most inspiring piece of advice that has seen you through a life in business to this day and who gave that advice to you? That is a powerful and timeless piece of advice from Steve Jobs. The notion of pursuing what you love and finding genuine satisfaction in your work resonates with many, as it can contribute significantly to personal fulfilment and longterm success. “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.”

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FROM THE EDITOR

THE BIG GUY Paul Skeldon paul@telemedia-news.com ART DIRECTOR Victoria Wren victoria@wr3n.com CONTRIBUTORS & CONSULTANTS Nick Lane Elson Sutanto Jarvis Todd Tim Green SALES & MARKETING info@Telemedia-news.com PRODUCTION DIRECTOR Annika Micheli annika@Telemedia-news.com PUBLISHER Jarvis Todd jarvis@Telemedia-news.com TO SUBSCRIBE www.TelemediaOnline.co.uk CIRCULATION ENQUIRIES Geraldine Lawton - O’Sullivan Geraldine@Telemedia-news.com WHAT WE’VE BEEN LISTENING TO New Day, Greta Van Fleet With My Hand on My Heart, Cock Sparrer WHAT WE HAVE BEEN READING The small print... WHAT WE HAVE BEEN AMUSED BY Punchlines.ai WHO WE’VE BEEN FOLLOWING @poopsie_couple SPRING 2024 WILL BRING… The full power of AI marketing TELEMEDIA MAGAZINE is published five times a year and circulated in print to qualified readers and downloaded in digital format to 12,000+ requested readers. BUSINESS ADDRESS: Ground Floor, Virginia Cottage, Nash Lane, Scaynes Hill, West Sussex, RH17 7NJ, UK. Web: www.TelemediaOnline.co.uk Overseas subscriptions and non qualified readers can obtain Telemedia Magazine with an annual subscription rate of £15 / 20. Refunds on cancelled subscriptions will be provided at the publisher’s discretion, unless specifically guaranteed within the term of subscription. © World Telemedia Ltd. All rights reserved. No part of Telemedia Magazine may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording on any information storage or retrieval system without the written consent of the publisher. The contents of Telemedia Magazine are subject to reproduction in information storage and retrieval systems. Print by Borpi, S.L. (Borpisa).

Stop talking about AI’s role in telemedia, it is telemedia AI is now so entrenched in all things digital that we need to stop talking about AI and talk instead about the ways in which telemedia services will now operate in an AI-powered world. And that talk will be happening at Telemedia8.1LIVE in Barcelona and around the halls of Mobile World Congress at the end of this month. AI has come to define the tech sector in just a few short years and it now sits behind everything we do. But it isn’t in machines out-smarting humans (yet!), primarily where it is adding value is in how it understands data and automated grunt work. Sounds prosaic, but it is true. AI can sift the vast amounts of data that all digital services now accrue far quicker than

any mere mortal. It can also spot trends, groupings and demographics that may otherwise go unseen. This information is then passed to the humans, who are still way better at creating the content and services to tap into these new data groups. While they are doing that – investing the might and agility of the human mind in clever ways to market to other humans – AI can get on with writing the boring copy for all the everyday stuff. This to me is the paradigm of AI right now. It is a tool and already we are making great use of it in marketing (see pages 1, 3 and 22), payments (pages 4 and 6), content services (page 14) and fraud protection (page 18). Interestingly, the rise of AI has also shifted the mobile content

market, with more consumers than ever now looking for AI and GenAI apps in the app stores (see page 20), as well as it not only playing a key role in the running of 5G networks (see page 28) but is one of the main technologies that will also derive the most use from both advanced 5G (see page 29) and the IoT-friendly 5G RedCap (see page 30). So, should we be talking about AI? No. What we need to be talking about is what we do with AI – and that debate starts right here. telemediaonline.co.uk @telemediaTweets

Paul Skeldon. editor

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CYBER SECUIRTY & FRAUD

Crime and punishment Thanks to AI, cyber criminals can now operate at an almost industrial scale – but AI also holds one of the keys to stopping it. Paul Skeldon takes a look at the wider world of fraud and what can be done to tackle it 2023 appears on the face of it to have been a good year for cybersecurity. As we reported latterly in November and December on Telemediaonline.co.uk, great strides have been made in combatting many of the frauds hung around DCB – the battle not won, but certainly not lost. However, the rise of SMS fraud and the increasing use of AI among cyber criminals to get smarter, faster and more niche has made the picture less rosy.

As reported in late January 2024 by Gcore in its excellent Radar Report (see panel), there has been a surge in high volume DDoS attacks in 2023, now being measured in terabits rather than gigabits. Ransomeware attacks in 2023 also grew, with IBM reporting that March alone saw 400 attacks – with more than 34 on local government offices in the US that month. The problem is that, while

cyber security has got better, so have the cyber criminals – who can now operate on an almost industrial scale, perpetrating massive volumes of attacks, rapidly. And it is only set to expand in the year ahead.

THE YEAR AHEAD

So, what does 2024 have in store for cyber security? Well, where 2023 may have been a ‘good’ year for the cyber security industry, this year is set to see a new wave of problems. AI and GenAI is, in the words of Charles Henderson, Global Head, IBM X-Force, going to make “customer acquisition” much easier for cyber criminals.

There is a lot of stolen data out there, but until now it has been relatively hard to extract all its value. GenAI now makes it possible to sift through all the data points and find all the value. If that wasn’t enough, GenAI will also be able to help the crims optimise target selection. This will see both ‘civilians’ and corporations come under new levels of attack and new forms of security compromise. AI voice cloning, for example, could spell havoc with all manner of telemedia services. With voice tipped to be a biometric verification tool to supplant SMS OTP – which itself is seeing a different and costly fraud in AIT – security could be further weakened rather than improved. Similarly, AI created deep fakes and fake shopping bots are also starting to hit merchants and retailers of all kinds with fraudulent traffic and fake orders, returns and other scams. 2024 is a year of global events that will also add grist to the fraudsters’ mill. The Paris Olympics is likely to see a surge

Radar love: DDoS attacks 2023 International cloud and edge solutions provider, Gcore’s Q3-Q4 2023 Gcore Radar report finds that there were a number of significant developments in the scale and sophistication of cyberthreats in 2H 2023, including: • The maximum attack power rose from 800 Gbps (1H 2023) to 1.6 Tbps • The most attacked business sectors were gaming (46%), financial (including banks and gambling services) (22%) and telecom (18%) • USA (24%), Indonesia (17%) and The Netherlands (12%) list as the top three attack source countries • The average length of attack was approximately an hour, however, In Q3/Q4, the longest attack duration lasted nine hours. • UDP floods constitute 62% of DDoS attacks. TCP floods and ICMP attacks remain

popular at 16% and 12% respectively and SYN, SYN+ACK flood, and RST Flood, account for just 10% combined • The past three years have brought about more than a 100% annual increase in DDoS peak (registered maximum) attack volume. In 2022, the peak capacity of DDoS attacks increased from 300Gbps (2021) to 650 Gbps. In Q1–Q2 of 2023, it increased again to 800 Gbps, while in Q3–Q4 of 2023, it rocketed to 1600 Gbps (1.6 Tbps) • The jump in H2 of 2023 has resulted in the cybersecurity industry now measuring DDoS attacks in a new unit, Terabits. This escalation illustrates a significant and ongoing rise in the potential damage of DDoS attacks which, according to Gcore, is a trend that it expects to see continue in 2024. Commenting on these findings, Andrey Slastenov, Head of Security Department at

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Gcore, says: “The exponential surge in attack power and variation in attack methods that we saw in the second half of 2023 illustrates how sophisticated cyber attackers are becoming. It’s more essential than ever for organisations to adopt a multifaceted defence strategy that can protect against a range of DDoS techniques. Failure to address these evolving threats can result in costly disruptions, reputational damage, loss of customer trust, and security breaches.” Slastenov concludes: “The increase in attack power to 1.6Tbps is particularly alarming, signalling a new level of threat for which organisations must prepare. Paired with the geographical distribution of attack sources, it’s clear that DDoS threats are a serious and global issue, necessitating international cooperation and intelligence sharing to mitigate potentially devastating attacks effectively.”

in all manner of physical, social and digital frauds – not least phishing scams, social media cams and malicious app scams. The raft of elections taking place in 2024 – US, UK, EU, Russia, India and more – is also set to see fake news and other ‘social engineering’ frauds proliferate – giving fraudsters not only a rich seam of new victims, but also a boost to their own bottom lines, which translates into more investment in AI and other tech to grow fraud further. The rise in global conflict that started with the Russian invasion of Ukraine and continues in Gaza, the Houthi occupied regions of Sudan and across Ethiopia, Armenia and Azerbaijan to name just a few all act to destabilise vast swathes of the world – and fraud and crime thrive in chaos.

THE AI-NSWER IS…

But while the landscape looks ripe for a festival of fraud of all stripes in 2024, there is hope. AI is propelling many of the frauds seen in telemedia to new and frightening heights, but it also holds the answer. GenAI is the tool that is helping fraudsters, but it is also the tool that will fight them. As Evina points out (see page 14), the AI and bot surge in 2023 has drastically changed the cyber landscape. With cybercriminals leveraging advanced Large Language Models (LLMs), such as ChatGPT, the risk of sophisticated fraud has intensified. As a result, Evina foresees a critical need for proactive defence mechanisms in 2024 to safeguard against these emerging threats. All companies should be looking at how to reverse engineer AI back into their businesses to not only create new services

and efficiencies, but to tackle new and future fraud. Using the power of GenAI against fraud – not least to use it to spot ever more sophisticated frauds and deep fakes – is going to be essential in the year ahead.

BEYOND AI

Outside of AI, there are other ways that fraud can be prevented. Research is now a key component of fraud prevention – the University of Birmingham being a case in point. It has found new ways to foil mobile phone account take overs. Regulators, too, can play a role. On the payments front, we are likely to see more drafts of PSD3 this year, which provides a chance for financial institutions and PSPs to strengthen their dedication to consumer protection, improve their competitive edge, and foster innovation. It is also always worth look-

ing ahead too. While 2024 may have some AI-led frauds up its sleeve, these are all just things already on the mainstream radar. A lurking threat lies in Quantum computing. The huge processing power that these computers – which rely on quantum states rather than the binary nature of semiconductors, thus vastly increasing the number of individual calculations that can be undertaken simultaneously – means that traditional encryption could well be rendered useless. The computing power could also supercharge GenAI, exacerbating all the problems we have today, while generating new ones. The trick, as ever, is to use the same tools, so while we all must be on our guard – and using AI to help us – perhaps we also need to look ahead to how things like quantum computing may also be something we need to sit up and take note of.

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MEDIA & CONTENT

State of the mobile world The real world is in turmoil, but the mobile ecosystem is in fine fettle. Paul Skeldon takes a look the latest data from Data.ai to assess the high points from 2023 and what mobile marketing, gaming, commerce, app use and AI have in store in 2024 – and where the next raft of oppor tunities may lurk << THE MOBILE MARKET OVERALL

The global mobile market is booming, set to be worth $533bn overall in 2024, with app store revenues generating $171bn and mobile advertising a staggering $362bn worldwide. Mobile gaming leads the way, although growth has slowed, and continues to lead the gaming sector. Non-gaming app spend has rebounded 11% in 2023, thanks to streaming and UGC. Meanwhile, consumers are shifting their spending to social media, with TikTok out in front. And, as if it needs saying, AI is everywhere.

MOBILE AD SPEND >>

Mobile will continue to take a larger share of the advertising wallet as more time than ever before is spent in apps. Total hours will reach 5.1 trillion in 2022 on Android phones alone. Ad spend growth will bounce back a bit from the slower growth in 2023, though it will remain below the rates seen between 2019 and 2022. YouTube and TikTok continue to gain consumer attention and outpace to social networks by average time spent per user.

AI: THE 2023 BREAKOUT

Generative AI, data.ai’s latest addition to its App IQ taxonomy, emerged as one of the fastest growing genres of 2023. AI Chatbot apps really took off in the later part of the year with the launches of ChatGPT and Character AI and adoption has remained strong since. Consumer spend also continued to climb throughout 2023 after huge growth earlier in the year. Many top apps like ChatGPT include subscription offerings to unlock additional features. The AI popularity was fairly global, though the genre did not rank among the top five breakout genres in several Asian and Middle Eastern market including China, Japan, Saudi Arabia, and Turkey.

FOR MORE INFORMATION This is an extract from the latest State of Mobile 2024 report from Data.ai Request a demo here https://www.data.ai/en/go/contact-sales

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HYPERCASUAL GAMERS RULE >>

Hypercasual games as a genre have seen a boom in demand. As the market becomes increasingly competitive, we expect more hypercasual games to evolve in terms of blending mechanics to create deeper engagement. Hypercasual games have been a great user acquisition funnel for many publishers and now we expect the focus to shift partially to building depth and engagement since they have acquired a significant footprint. Innovative Genres such as Avatar Life (Gacha Life 2) and Party Royale (Eggy Party) are poised to disrupt incumbent market dominance.

<< CONSUMER HABITS

After declining 2% YoY in 2022, global consumer spend bounced back in 2023 up 3%. South Korea, Brazil, Mexico and Turkey all exceeded 25% YoY growth in 2023. Meanwhile, downloads growth stalled at 1% YoY. Bangladesh has emerged as one of the fastest growing markets. Time spent grew 10% YoY. Time spent in Pakistan (#10 by time spent), South Africa (#19) and Vietnam (#9) grew by 14%, 13% and 12% respectively.

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MARKETING & PROMOTION

Shifting gears Moving from multito omni-channel MarTech strategies Upstream CMO, Chrysa Karamanidi, and Head of Product & Growth, Katerina Matthaiou, highlight the impor tance of deploying omnichannel marketing strategies and why MarTech can accelerate their adoption

Consumers today do not just seek mere digital interactions, but consistent and unified experiences across any touch point through which they communi-

Four ways to apply MarTech to omnichannel The global omnichannel marketing opportunity is set to be worth $19.5bn by 2030, according to the latest research, driven by omnichannel’s improved connectivity between brands, retailers, merchants and audiences. Here are four ways to make it work. Programmatic advertising – One of the biggest steps forward with modern MarTech is the use of automation. Until now, many brands and merchants were having to manually collect, analyse and segment customer data, then create and deliver ads accordingly. They then had to track and optimise campaigns based on what then occurred. MarTech – especially today’s AI-powered platforms – can much more easily automate all of this, not only doing what a human would do, but also finding new, often overlooked segments, demographic groupings and more. Generative AI can also help create even more engaging ads for all identified groups, as well as automating the bidding and buying process. Targeted email – Similarly, AI-driven MarTech can create much more effective email marketing campaigns, generating new levels of personalisation based on the customer data collected and presented to the system. It can also be used to

automate B2B email marketing, generating and sending series emails, industry report emails and even writing blog posts. Geofencing – For marketing the relies on location, geofencing is ideal, but since it is often intrusive it relies on personalisation not only being totally fool proof, but also timely. Here MarTech systems backed with AI can look at the consumer data available, look at the content or offers and much better match the two. It can also assess how often someone has been pinged with a geofenced offer in a particular place – and indeed if they acted on it – and hold back from sending too many. Cross-channel customer support – better data means too that customer support can better serve customers. Collecting, analysing, slicing and dicing data can create the ultimate in personalised marketing, but this too can be translated into how you handle these customers should they contact your business. Omnichannel routing can also channel customers to the right person for their likely or known request, with the system knowing what they have bought and what they need from their interaction. It can also choose the best support based in the channel through which the customer arrives at the agent.

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cate with a brand. In response, many brands have implemented multichannel strategies. However, few are those that have succeeded in transitioning into an omnichannel approach. Usually, the emphasis is placed on the use of various channels to reach the largest possible number of customers, with the channels working independently from one another. This approach isn’t always successful as 56%1 of consumers report that they frequently have to repeat the same information through different customer flows, which is a cause for frustration. In fact, 79% of consumers expect consistent interactions across channels and 80% consider a brand’s experience as important as its products2. Omnichannel is the art of redefining the customer-brand interaction. It is not about the quantity of channels, but about the quality of the integration between the channels. In the realm of consumer expectations, the product purchased is only as important as the seamless journey it accompanies. Each communication channel needs to contribute its own distinct element, working together to craft

a unique personalized experience. Whenever we get closer to an omnichannel strategy, putting the user rather than the channel at the epicentre of the communication, the results are remarkable.

HOW MARTECH IS RESPONDING

The benefits of embracing an omnichannel approach are manifold, ranging from brand consistency and higher customer satisfaction to personalised offerings, efficient customer support, enhanced overall experiences and elevated conversion rates. Despite these advantages, the transition from multichannel to omnichannel is slow and intricate, influenced by factors such as organisational silos, resistance to change, resource requirements, lack of expertise of the marketers, inconsistent

customer data and inadequate customer understanding. Additionally, infrastructure and technology pose challenges in this transition, as different departments use different tools, which lack integration, there are costs to consider for upgrading existing infrastructure and new infrastructure has to be implemented to ensure security and privacy. Here’s where marketing technology comes into play, enabling companies to adopt true omnichannel strategies. What a MarTech platform needs to offer is centralisation, the ability to control all the communications across the board through a sole platform. Integrating data gathered from all different channels or even from existing customer data platforms (CDPs) will ensure better targeting, but it will also enable setting up event-triggered communications. Unified

reporting will help acquire a better understanding of customers, leading to improved decision making. Magic can only happen with the right tool.

PUTTING OMNICHANNEL MARKETING INTO WORK

One example of omnichannel strategies unfolding can be seen through Upstream’s mobile marketing platform, Grow. Such a case is driving plan upgrades for a major mobile network operator in Brazil. The seamless integration of the MNO’s data into the platform enabled targeted campaigns, which drove 24% higher conversions. Also, the company reported a 45% uplift in plan upgrades through automated retargeting of customers who dropped off the purchase funnel on the web, through mobile messaging channels, such as SMS or RCS. Similarly, Upstream reports

a 135% customer base increase through onsite campaigns for a fashion retailer in Brazil in 45 days. The new CRM base was then used to drive sales via mobile messaging. Leveraging behavioural data, the company ran personalised win back campaigns that improved repeat sales by 8%, as well as cart recovery campaigns, decreasing cart abandonment by 70%. Overall, the retailer enjoyed a 16-fold return on investment. Chrysa Karamanidi, Chief Marketing Officer, and Katerina Matthaiou, Head of Product & Growth, at Upstream were speaking at MEF Connects Omnichannel in London on 28 November 2023 References 1 Salesforce, State of the Connected Customer Report 2 Salesforce, State of the Connected Customer Report

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MARKETING & PROMOTION

Saudi Arabia have recently introduced new privacy laws. But, as we reflect on the fifth anniversary of GDPR’s introduction, the first billion-dollar fine has been issued. So, what does this mean for data privacy moving forward?

THE IMPACT OF GDPR

GDPR Is it winning? On the fifth anniversar y of the introduction of GDPR, Alasdair Anderson, VP EMEA, Protegrity, discusses how it could yet be the game-changer needed in creating proper privacy and data laws GDPR continues to be a gamechanger, setting the precedent for privacy and data laws around the world. In fact, the United Nations Conference on Trade and Development(UNCTAD) recently reported that 71% of countries now have data protection regulations in place and a further 9% have legislation in development. Countries such as Vietnam and

Where once enterprises could buy, sell, share, and store customer data with relative freedom, for the last 5 years every organisation that operates under the GDPR has been subject to scrupulous regulatory compliance requirements. Brands like Amazon, WhatsApp and Google are just a few of many that have been fined for breaches. In many cases, the GDPR has been successful in protecting consumer privacy by setting clear guardrails for how businesses should protect data travelling through the EU. However, today’s global supply chains and international corporate footprints require data to be shared across borders, and whilst we understand the intentions behind data sovereignty regulations, the GDPR has enforced antiquated policies that have stifled innovation, arrested economic growth and overlooked the many technologies that are transforming data privacy for the better. It has also raised issues around the data transfers needed for businesses to comply with important international regulations such as anti-money laundering and sanctions. Therefore, while the GDPR has been hailed as one of the most robust data governance, data management and data transparency regulations in history, many organisations, particularly those in the US, are still ill-equipped to comply with it.

DOES THE DECISION ON META SHIFT THE NEEDLE?

One clear challenge of the GDPR has been that there is no definitive way for business leaders to achieve compliance. The language used is

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performance-based, meaning that while the mandated outcomes of GDPR are clear, for example, ensuring user data doesn’t fall into the wrong hands, the ways to get there are very generalised and largely seen as ‘up to the company’ to put in place. Additionally, fines to date haven’t been that onerous. That changed with the Meta fine and six month window to stop data transfers from the EU to the US. Effectively, the basis of Meta’s fine is that, while it had contractual language in place to treat EU data differently from a legal standpoint, it had no demonstrable controls in place to show that it was actually doing so. This ruling puts an end to paying lipservice to compliance; without demonstrable controls governing data movement, a company will find itself outside the law and therefore liable. This clearly shifts the needle on the importance of data protection to business. It firmly cements data protection – and proof of data protection – as not a ‘nice-to-have’ but a necessity to operating, and one that every organisation must take seriously. Fines in the billions have previously been reserved for the worst breaches of corporate responsibility. Now, however, the €1.2 billion figure casts a large shadow over the previous EU record fine of €746 million handed to Amazon. The fact that the figure is comparable to fines relating to the money laundering scandals of Westpac ($1.3 billion), Danske Bank ($2 billion), and HSBC ($1.9 billion) only further highlights the importance of this decision to the future of data protection and EU-US data flows. The decision will have implications that will ripple far beyond the tech ecosystem. Industries that are heavily reliant on crossborder data flows – particularly supply chain, manufacturing, and petroleum/chemical – will now be scrutinising their use of data more than ever before.

RAISING THE PRIVACY BAR

As a result, we’ll likely see the bar being raised in terms of how organisations prioritise privacy regulation. It will certainly get organisations to reflect on adequacy and what they need to do to achieve it. Without a doubt it is challenging to be fully globally compliant. There will never be a single global regulation covering all territories, instead there will be a patchwork of bilateral regulations. Therefore, industry as a whole needs to reach consensus on what is acceptable, or deemed the gold standard? What is going to be the standard that organisations follow and how does that have equivalence across the world? In pursuit of that goal, we’re seeing two words are becoming highly significant: adequacy and equivalence. Adequacy – in other words has the organisation done enough?

And the issue for US companies is equivalence. The EU has determined that US law doesn’t fulfil EU standards so, because of this lack of equivalence, they must comply with GDPR as the superior standard.

GDPR PAVES THE WAY FOR AN INTERNATIONAL FRAMEWORK

While challenges undoubtedly exist, the fact that GDPR has had such strong influence over the shape of national privacy regulations worldwide offers the opportunity to use it as a foundation for a workable international data governance framework. Such a framework would need to be flexible enough to accommodate changes to national privacy regulations, while ensuring equivalence with the key principles of GDPR is maintained. The framework would establish and clearly articulate the con-

trols required for data to move safely, allowing organisations to build and deploy compliant protections. Once built, these protections can be automated and audited to ensure strong governance. This approach provides a wealth of benefits to organisations as they focus on achieving workable data protection and compliance. It allows them to build scalable data protection and control systems at speed, based on universal principles. It avoids having to tailor systems to every jurisdiction, with the associated risk of human error in decision-making. Also, by deploying a platform-based controls system, organisations can achieve the agility they need to stay up to date with any changes; when a regulatory change happens, the relevant control is adjusted accordingly, allowing data flows to continue uninterrupted.

GDPR HAS SET THE GOLD STANDARD

Ultimately, the free flow of data is a driver in the global economy and essential for organisations across every sector. Data must be moved not just for commercial purposes, but also to address a variety of critical issues such as compliance with regulations around sanctions and ESG, so it is essential to find a route forward that balances privacy with compliance obligations. GDPR has set the gold standard for data sharing while keeping it protected and should form the basis of an international data governance framework that facilitates protected, effective cross-border data flows. Alasdair Anderson is VP EMEA, Protegrity

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VALUE-ADDED SERVICES

How MENA broke the bank The MENA region continues to go from strength to strength, with markets becoming ever-more lucrative and fraud falling. Paul Skeldon takes a look The Middle East and North Africa (MENA) region has become one of the biggest success stories of the mVAS and carrier billing markets in the past five years. A surge in use of the web – particularly over mobile – during the pandemic saw millions of consumers across the region turn on to just what fun there was to be had in digital entertainment. With many unbanked, carrier billing become the default for how they paid. Mobile internet penetration in the region continues to rise post-pandemic and is expected to surpass 350 million connections by 2023, according to Statista. This has also driven a surge in tech investment in the region, most notably in 5G, AI and cyber

security. 5G has become particularly popular in Saudi Arabi and the UAE since its initial limited roll out in 2019.

CONTENT IS KING

From a content point of view, the MENA market has embraced many of the tropes of other content and VAS markets elsewhere in the world, with sports, news, games and video entertainment all flying high. The most popular mobile games in the region are what you would expect; strategy, action and sims, together accounting for 63% of the market according to the MENA-3 Games Market Report 2022. However, hyper causual gaming is set to be the

most popular games category in the region going forward, according to Data.ai’s State of Mobile MENA 2023, growing 28% in a year and its 2.6 billion downloads accounting for 31% of all downloads. By contrast, simulation games account for around 18%. The esports market is a significant growth driver in the MENA gaming industry. The report highlights that 73% of gamers engage with esports in some capacity, with 14 million esports enthusiasts and 11 million esports gamers. Saudi Arabia has the highest revenue, and Egypt has the largest. As time as gone on, the market has also come to be defined by a raft of ‘localised’ services, many tapping into the particular tastes in the region – religious content and localised sports and even poetry and traditional stories.

Social media use in the region has also exploded, with five MENA nations already lying way above the global average of 59.3% for uptake of social. The UAE has 100% uptake, Bahrain 98.7%, Qatar 96.3% and Lebanon and Oman both on 90.5%. Financially, this is injecting a lot of money into the region, with GO-Globe data suggesting that internet ad spend in MENA’s top 14 social markets is worth $4.4bn in 2022. Apps too are extremely popular. Across 2022, app store spending in the region rose 10.3% year-on-year to $3.1 billion according to Data.ai’s State of Mobile MENA 2023 report. Daily time spent grew 3% to 4.5%, while new downloads increased a massive 45.7% to 13.8 billion - an average of 26,200 apps downloaded per minute.

‘Digital Corridor’ opens up MENA to rich content and telecoms services MENA telco Telecom Egypt has joined forces with Oman’s Zain Omantel, to create a new digital corridor connecting the Mediterranean Sea to the Arabian Sea and Arabian Gulf, creating an unprecedented Eurasian data highway. The innovative infrastructure will extend from Oman’s Arabian Sea and Gulf shores to Egypt’s Mediterranean coastline, employing a high fibre count, cutting-edge blend of terrestrial and subsea segments. The terrestrial segments, spanning Oman, Saudi Arabia and Egypt, promise unparalleled reliability and protection. On the other hand, the subsea section, directly linking Saudi Arabia and Egypt through the Red Sea, will feature a high-capacity, repeaterless cable system. The route design will provide Telecom Egypt and ZOI’s partners and customers with the best resiliency and reliability for their end-to-end solution. Furthermore, the infrastructure will be extended to Kuwait, Bahrain, Iraq and Jordan through ZOI’s network and collaboration with the

licensed cable landing parties in each country. This collaboration also offers a revolutionary opportunity for subsea cable owners. By connecting to this open access system, they can significantly reduce their construction costs and greatly enhance latency, resilience, and market response times. Telecom Egypt will develop new infrastructure across Egypt from the Red Sea to the Mediterranean and onwards to Europe, complemented by ZOI’s robust infrastructure across the Middle East. This new network route will have the shortest, enhanced latency profile, giving hyperscalers, subsea cable providers, carriers and telecom operators improved connectivity options from the Indian Ocean to Europe. Mohamed Nasr, Managing Director and CEO at Telecom Egypt, comments: “We are excited to collaborate with ZOI on this strategic project; it’s a game-changer in the Eurasia route connectivity landscape. As we look for innovative ways to better serve our customers, we will consistently

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strive to provide a seamless international connectivity network and increase our diversity layers, without compromising quality, cost or speed. We will do this by leveraging on both Telecom Egypt’s established history in the subsea cables arena and its experienced and competent team.” Sohail Qadir, CEO at ZOI, adds: “We are delighted to partner with Telecom Egypt on such a ground-breaking project. ZOI was created to revolutionize the wholesale telecom scene and this is an example of what the future holds. We are facilitating the landing of subsea connections through our shareholders such as Omantel and Zain KSA being the licensees in those jurisdictions. This one-of-a-kind infrastructure will be expanded to most of ZOI’s network footprint to maximize the benefit to our group operations across the region. The value that this digital corridor will create is enormous and it will be widely realized in the region and beyond not only from a connectivity point of view, but also on technological, commercial and social levels.”

Users in Saudi Arabia proved to be the most engaged of the country’s key mobile-first markets (Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, and Israel), with an average of 5.5 hours spent on their phones per day.

BATTLING FRAUD IN MENA

This has created a thriving digital entertainment economy across the region, which while attracting investment – not least in infrastructure (see panel) – has also attracted fraudsters. Battling this has become key to making this success story continue and there have been some real success here. In fact, the annual DCB Index carried out by anti-fraud company Evina and DCB experience developer Telecoming finds that the region is in stunningly good health. Ranking each country on a five-point scale, the DCB Index provides insights into the Direct Carrier Billing market of countries in the Middle East and Africa region (MEA), ranking them according to their current DCB status and potential to develop this growth-boosting mobile payment method further. For the first time, the 2023 edition of the DCB Index includes three new countries with positive ratings: Algeria at 2.9, Botswana at 2.3, and Saudi Arabia leading with a score of 3.4. Among the countries it has looked at for a number of years results reveal that Morocco is the leading country in the ranking, with the highest score (3.6 out of 5). Almost all mobile players are deploying DCB, and that’s why Morocco’s DCB market is a reliable and consistent sector. The market’s resilience and steady progress point to a solid foundation for future DCB development. South Africa is second this year with 3.5 out of 5. Mobile users in ZA have quickly adopted alternative payment methods, such as mobile money, reaching 8 million users in South Africa this year.

How India and LatAm are also driving growth

While the MENA region is one of the most lucrative ‘new’ markets for telemedia, India has also become a boom market for DCB around a growing digital economy in the country and the wider Indian subcontinent region. According to data from Juniper Research, India will see a CAGR of Carrier Billing spend of 37.7% – slightly ahead of the MENA region on 37.3%. Analogous to the MENA region, growth in the Indian subcontinent has been driven by rapidly increasing smartphone penetration and a hunger for content. Many consumers in the region are also unbanked and, while many of the emergent middle class is starting to get bank accounts, driving growth in A2A payments (see page 8), the vast majority use DCB quite widely, even if it is just an onboarding/sign up mechanism for first When combined with effective cybersecurity, this trend will enable DCB to boost revenues for mobile players significantly. At the same stage, Iraq (3.5 out of 5) and Egypt (3.5 out of 5) differentiated by opening more opportunities for DCB deployment and increasing their protection against fraud attempts on Direct Carrier Billing. Saudi Arabia (3.4 out of 5) is one of the new countries in the ranking and follows close behind. Also, in the Middle East and North Africa, UAE (3.3 out of 5) and Kuwait (3.0 out of 5) stole the show, surpassing last year’s leaders, Qatar down to 2.9 this year from 3.3 in 2022 and Tunisia that goes down to 2.9 from 3.3 in 2023. Algeria is also new onboard and has the same level as Tunisia, with 2.9 points out of 5 on the list. “As per the latest DCB Index analysis, mobile penetration in Africa and the Middle East is on track to surpass 90% by 2023,” says Roberto Monge, COO of Telecoming. “This significant growth reflects the expanding accessibility of mobile services across these regions. Notably, our findings show an impressive rise in innovation, with the indicator climbing an average of 3.4 points out of 5 this year alone. This trend is joined by the substantial

time users. There are also signed of growing use of DCB across LatAm. While the region traditionally has a low rate of financial services penetration, Carrier Billing’s spend is expected to increase from 2.6 billion in 2023 to 6.5 billion in 2027, CAGR of 25.1%. The market has shown a huge growth potential and alternative payment methods are becoming more popular, as the digital content consumption and interest have increased with better mobile connections and a higher rate of internet penetration. Again, A2A payments are taking off in LatAm, but there is a large base of DCB users, making it a tempting market, which may probably become the next big area of growth as MENA and India slows.

growth of the most innovative new mobile payment solutions.” He adds: “These advancements are vital in driving the mobile economy, where DBC has already established a prominent presence. Telecoming is witnessing the region’s dynamism and the exciting developments currently shaping the market.” David Lotfi, CEO of Evina, says: “This year’s ranking shows a modest increase in the overall level of security among DCB players operating in the MENA region. This positive trend is

welcome, but should not mask the growing disparity in security levels between players.” Lofti concludes: “Some players are investing in their development and security on the DCB and reaping significant benefits in terms of growth and profitability, while others are caught in a downward spiral where they find themselves unprotected and under attack by fraudsters who target the least protected regions of the world and avoid defended players.”

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TELECOMS & NETWORK OPERATORS

A mobile life

5G is finally starting to be widely used and over the next three pages Paul Skeldon looks at where it’s at today and what it might be offering tomorrow – starting with some of today’s key developments It’s been a long time coming, but 5G is finally rolled out and, while only 32% of consumers worldwide use it with any regularity, it is set to be the network we all use to do all the real and virtual things the telemedia industry has in store. But what of today: where is 5G seeing some wins right now and what does that mean down the line?

STREAMING

The bandwidth, network slicing and ‘brains’ within 5G is already driving a boom in streaming of everything from music and podcasts to audio to games. Latency and lag are greatly reduced – even when the network is under strain – and users get a great experience. In addition, this leads to new services looking to stream to mobile users, creating the opportunity for new money-mak-

ing services to be rolled out. Sam Media’s Holozonia, for example, is something that leads the way in 5G ready services, which brings us to…

THE METAVERSE

Widespread 5G is what will make the metaverse ubiquitous. The bandwidth and low latency will be essential for mobile metaverse applications and, in making the metaverse easy to use – and not at all frustratingly jerky – will see more people want to try it, immerse themselves in it and then start spending their (virtual) money in it.

AR AND VR

Like the metaverse – and indeed as part of the metaverse – 5G is also starting to see widespread adoption of AR overlays and virtual reality services on mobile. These require a stable network

that will not glitch at a crucial moment and 5G is delivering. This is leading to services across m-commerce such as placing virtual items in the home before buying, to capturing AR Pokémon wherever you go.

GAMING

5G is already having an impact on gaming, offering a raft of advantages to deep and casual gamers alike. This is particularly true for multi-player, interactive gaming as it allows for more users to interact in the same game at the same time while enjoying high level graphics and very low latency. It also greatly improves mobile cloud gaming, which will see more users attracted to playing these games and more cloud games being created – adding significant growth to this segment of the games market.

ROAMING

And all of this will be done wherever the consumer goes. Operators will see retail roaming revenues from consumer and

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IoT mobile connections approach $33bn by 2028, fuelled by a complete recovery in travel and increased consumer roaming usage across key markets. In addition, an eight-fold increase in 5G consumer roaming connections between 2024 and 2028 is also forecast, contributing to an estimated 70% average annual growth in retail revenues. According to Retail Roaming: Market Trends & Outlook 2024 research found that the retail roaming spend per trip will continue to fall in all major regions over the next five years. This will be driven by the continued expansion of ‘roam like at home’ and the introduction of cheaper daily bundles worldwide. Kaleido expects IoT roaming connections to continue to see robust growth, exceeding 1 billion by 2028. However, monetisation of roaming IoT devices will become a fundamental aspect for operators, as they ensure access based charging offers do not price customers out of the market.

TELECOMS & NETWORK OPERATORS

5G Advanced The first step towards 6G

The first tranche of 5G networks have been rolled out around the world – but that is just the start. Part of 5G’s charm is that it is designed to continuously evolve and the next step – 5G Advanced – is here, but is it the bridge to 6G, wonders Paul Skeldon? Is it too soon? Too soon to talk about 6G? With 5G only just being rolled out in many places – and with as many as 68% of the world’s mobile phone users not yet using it – it seems premature to talk about 6G. Yet here we are, talking about it. And for good reason. 6G is on its way and will be one of the key topics being talked about at Mobile World Congress 2024 because of how 5G has helped change the world. 5G has introduced a world of lower latency, higher bandwidth connectivity that has played no small part in ushering in the era of AI and Web3.0. And that very success is what drives talk of what must come next. But 5G was designed to evolve and that is exactly what it is doing: with the latest iterations offering some new functionalities and offering MNOs an opportunity to generate new revenues from what they can do.

WHAT IS 5G ADVANCED?

The first of these is 5G Advanced – or 3GPP Release 19, to give it its proper name – offers a wide range of enhancements to 5G that make it even more suited to the AI-led world we live in today and builds a bridge towards 6G. The improvements delivered by 5G Advanced cover a range of technical issues that unleash a torrent of acronyms – Uplink and Downlink MIMO evolution, layer 2 device mobility enhancements, advanced network topology, and on-going improvements to SON, MDT and

RACH – but what that means in practical terms is the 5G Advanced will support capabilities beyond data communication that can further enhance user experiences. For instance, Release 19 will further improve device ranging and positioning accuracy for use cases like navigation. Sidelink will play an increasingly important role in 5G Advanced systems, not only for improving positioning and ranging performance, but also for data offloading and for connecting new devices, like wearables and XR glasses. This offers a raft of new services for MNOs to offer and for SPs to monetise. It also puts 5G very much at the centre of enabling AI everywhere in everything, as well as being an underpinning technology for the metaverse. It is also much more environmentally friendly. We tend to not think about the energy consumption of the mobile network, it all seems to be invisible magic to the user, but they are quite energy-hungry. 5G Advanced aims to define an evaluation model with associated KPIs that measure system energy consumption performance and study a variety of power-saving techniques. The objective is to improve energy savings across diverse system deployment scenarios. Additionally, there is an ongoing effort to introduce a brand-new, very low-power WUS design aiming to substantially reduce

inactive mode device power consumption. And of course, 5G Advanced offers more capacity and faster speeds.

THE ROAD TO 6G

It also sets the telecoms industry on the road to 6G. It helps evolve the technology used in 5G networks towards the telecoms Holy Grail of full duplex, which offers the ability to transmit and receive simultaneously on the same band – so my mother can talk over me on the phone just as she does in real life – which is a key aim of 6G. It also enables a raft of new spectra, specifically in the 7 to 24GHz range. This is vital for meeting the insatiable capacity demand that the wireless ecosystem is starting to see as everything gets connected and those connections have to carry vast amounts of rich data. It also sets up the networks for something really quite amazing: RF sensing. This uses the radio waves of 5G to located and map in 3D

any item, so that devices can now be used to sense what is around them and transmit that information. This is the sci-fi end of the 6G proposal, but it is very much something that is covered within the scope of 5G Advanced and could well be a real game changer for service providers.

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TELECOMS & NETWORK OPERATORS

percent for high-band (FR2) devices, while high enough peak data rates are maintained to still serve more demanding IoT use cases.

WHAT DOES THIS DELIVER?

5G RedCap

Growing the device market

With the MNOs market naturally limited by the total number of smartphones it can connect – which is limited by the number of people on the planet – the industry has concocted a cunning plan: RedCap. Paul Skeldon explains There are only so many smartphones that will ever be in play at any one time. The market then is limited. Sure, we can add more content and services, charge more and encourage even greater use – though how my kids could frankly find any more time to be on their phones is beyond me – but ultimately there is a limit to the growth device makers and MNOs can squeeze out of the mobile market. The human mobile market that is. Where the real device growth is going to come from in

the coming decades is through connecting everything else to the network – building out the Internet of Things (IoT). For MNOs there is a huge opportunity to connect everything from smart wearables to industrial sensors and they have already begun to do so. Right now that is being done through 4G and 4G LTE (long term evolution), but as the world moves to 5G there is a need for a new category of devices that can tap into these faster networks and deliver even more to their users. The problem is that current

5G radio tech is too expensive to make this viable – so the industry has come up with a whole new category of 5G: 5G Reduced Capacity (RedCap) devices that can more cost effectively use the minimum amount of 5G tech to work. Let’s get technical for a moment. According to the boffins at Ericsson, the simplest RedCap device, that is, a RedCap device with the lowest possible complexity, is expected to reduce the modem complexity by about 65 percent for low- or mid-band (FR1) devices, and by about 50

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What this means in practice is that a single network – in this case 5G, but it also lays the groundwork to evolve to 6G in time – can be used to connect a raft of devices and deliver a wide range of services. This includes upgrading current LTE-based networks and their devices to deliver the benefits of 5G to things like smartwatches, wearable medical devices, security cameras and VR and AR glasses and other devices. Of course, there is a massive industrial angle to this too, with sensors and other equipment all being connected via 5G too. This corporate market is indeed largely untapped and MNOs can start to work their way in here thanks to 5G RedCap bringing new customer and new growth. In fact, it is estimated that MNOs globally can generate $400bn in service revenue from 5G networks in 2024 – an annual growth of 32% from 2023 – through rolling out 5G Advanced (see page 29) and RedCap offerings. The study by Juniper Research predicts the benefits of 5G Advanced and RedCap will be instrumental in the growth of IoT sectors, including automotive and mobile broadband. In turn, it forecasts there will be over 360 million 5G IoT devices using public network by 2028; a substantial growth from 35 million devices in 2024. It identified FWA (Fixed Wireless Access) as the sector to benefit most from these services, given the large amounts of traffic generated. FWA leverages cellular networks to provide Internet connectivity to other devices, often through Wi-Fi.

MEET THE PEOPLE

Meet the

PEOPLE

Rabih Jreish, Business Development Manager, Mobile Arts What does your company do? Mobile Arts Group is a multinational company specialising in cutting-edge monetisation solutions. Our primary focus lies in offering a comprehensive suite of services – in particular mobile payments, including DCB, Credit Card payments and a spectrum of other mobile payment solutions. Additionally, we function as a multichannel source for digital advertising campaigns, securing and optimising digital advertising efforts to expand reach and enhance customer acquisition. Which countries or regions do you feel represent the greatest opportunity for your Telemedia services in 2024? I believe that in 2024, Africa stands out as a rapidly growing market for mobile services, boasting a sizable, youthful population with a strong appetite for digital services and content. However, one challenge is the limited penetration of traditional payment methods. Which content and/or applications do you see being the most likely to benefit from Telemedia billing technologies? I see that cloud gaming platforms and e-vouchers poised to gain considerable advantages from billing technologies. Such applications and content can adapt to diverse payment structures, accommodating small

transactions with DCB and larger transactions through credit cards. Do you think that DCB can become mainstream and in which markets? I believe that DCB can become mainstream in both developing and developed markets because it offers convenience, security and accessibility for consumers and merchants. In developing markets, DCB can reach the unbanked and underbanked populations who may not have access to traditional payment methods, such as bank accounts and credit cards. DCB can also enable them to access digital services and content, such as gaming, video, and music, that they may otherwise not be able to afford or access. In developed markets, while DCB can provide a smooth and rapid payment option for online purchases, particularly for microtransactions and subscriptions, a substantial number of consumers still prefer paying through credit cards or bank-to-bank payments. This preference persists despite the high penetration and usage of mobile devices. How do you balance payment flows, operator relationships, and customer satisfaction? While there’s no universal solution, one key strategy we employ involves adopting a

unified user journey experience for payment flows across all operators, maintaining a consistently optimised checkout process. To foster trust with operators and nurture strong relationships, we prioritise compliance with regulatory and marketing standards. We’ve implemented a third-party anti-fraud cybersecurity solution for DCB within our digital marketing framework. Additionally, we’ve developed an in-house AIpowered compliance toolkit for marketing, safeguarding banners, and landing pages to prevent misleading information. Which specific VAS verticals are you expecting to have a great year and why? Gaming has emerged not just as a popular pastime, but also as a highly profitable sector within VAS. Moreover, the rise of esports platforms featuring tutorial videos has garnered significant attention,

fostering robust engagement, notably within online gaming communities, particularly on platforms like YouTube. While gaming remains a frontrunner, the landscape is evolving, presenting opportunities for AI-based verticals to shine. Despite a relatively slow pace of growth for AI-based services across markets, we’ve taken a proactive stance. We’ve introduced our groundbreaking AI product, the ‘AI Avatar,’ now available across various app stores. Do you see affiliate marketing being a primary, trusted channel for Telemedia propositions or do you think alternative routes to market will become more popular? I believe affiliate marketing can no longer serve as a primary, trusted channel, especially for DCB services. Over recent years, it has gained a negative reputation due to misleading practices and auto-subscriptions, resulting in damage across multiple markets. Consequently, operators have taken stringent measures, limiting advertising exclusively to social media and Google platforms, while imposing additional monitoring tools. This effectively restricts the use of affiliate marketing. As an Ads Technology provider, we’ve focused on sustaining our customers through campaigns that are not only cost-effective but also low-risk, utilizing diverse channels across social media and Google.

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3Anet stands out as a leading information technology solutions provider based in Saudi Arabia, serving the MENA region, offering a wide range of mobile and digital services, including Carrier Billing, VAS products, Content Management platforms, and digital marketing services. T: +966 11 450 9250 / Ext: 4111 F: +966 11 450 17 61 content@threea.net | www.threea.net

clipfeed is a global gaming and esports entertainment company that powers communities with our award-winning technology. We provide world-class gaming and esports entertainment to hundreds of millions of consumers. clipfeed works with telecom operators, DTH, ISP and OEM partners to create innovative and engaging gaming destinations for consumers. Connect, engage and monetize.

www.clipfeed.com CHOOSE YOUR PAYMENT METHOD

The go-to payment gateway for your mobile payment needs Pay via Carrier Billing

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400+ Happy Customers

est.

1997

+44 (0) 808 206 0808 sales.uk@dynamicmobilebilling.com www.dynamicmobilebilling.com

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www.messagecloud.com | sales@messagecloud.com HQ phone: +44 (0)3301 130 243

Content Monetization

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Driving value added services for voice and mobile

MEET THE PEOPLE

Meet the

PEOPLE

Marco Priewe, Managing Director, InternetQ What does your company do? We have been providing carrier billing solutions under the brand of KANZAROO for almost 30 years all across Europe. We recently acquired a license as payment institution from the German regulator BaFin(Federal Financial Supervisory Authority) and now also offer traditional PSP solutions, such as payments through credit cards, instant SEPA, cash payments, bank transfer and many more. What sectors does your business operate in (list all that are appropriate)? Our main focus is on payments and compliance solutions, but we also offer messaging and value-added services. Which verticals do you serve? Our main customer basis is engaged in gaming and entertainment services. As the BaFin license offers more opportunities, we have been developing new solutions for high-risk industries, such as adult, sports betting and online casino. What new solutions do you offer for these high-risk merchants? Besides carrier billing, we have been implementing a cash payment method into our platform that allows users to pay cash in 360,000+ stores for their digital goods, not just in Europe, but as well in LATAM, Africa and parts of Asia.

Besides the payments, we offer compliance solutions within our API, such as adult verification (AVS) and a KYC match that allows our merchants to verify the users’ data based on its mobile phone number with the data of its mobile network operator. With the KYC match solution, we can verify data such as name, address and date of birth. We see huge potential for the KYC match solution to comply with regulatory requirements in many countries, e.g. to comply with the regulation by the GGL (joint gambling authority of the federal states) for the German iGaming industry.

The payment flows have to be as smooth and simple that best conversion rates can be reached. Out of our 30 years of experience in this sector, we definitely know which flows work best in which markets. Our operator relationship is based on long lasting partnerships, which is essential for fast service approvals. You cannot be successful without a good balance within this triangle of payment flows, operator relationships and customer satisfaction.

Your words of wisdom: On a more personal level, what is the most inspiring piece of advice that has seen you through a life in business to this day and who gave that advice to you? Always be yourself and don’t pretend to be something you are not.

Which content and/or applications do you see being the most likely to benefit from telemedia billing technologies? DCB is a very intuitive payment method that can be interesting for basically all industries. In addition to the sectors mentioned above, we also see immense growth potential in the areas of e-mobility, ride share and cab services, for example. How do you balance payment flows, operator relationships and customer satisfaction? Customer orientation and satisfaction always comes first. All of our customers have a dedicated account and project manager and are always served personally no matter which company size.

More news, views and analysis at www.TelemediaOnline.co.uk

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Telemedia Magazine - Issue 72

Articles inside

Meet the PEOPLE

Meet the PEOPLE

5G GrowingRedCap the device market

5G Advanced The first step towards 6G

5G A mobile life

How MENA broke the bank

GDPR Is it winning?

Shifting gears Moving from multi to omni-channel MarTech strategies

Crime and punishment

Stop talking about AI's role in telemedia, it is telemedia

The Rise of A2A payments and what it means for carrier billing & alt. Payments

GDPR - is it winning?

Shifting gears

State of the mobile world

Crime and punishment

Stop talking about AI's role in telemedia, it is telemedia

State of the mobile world

Meet the PEOPLE - Ashraf Shrouf

Bridging the streaming gap: the niche advantage

AI to create $32.6trn in marketing performance – and telemedia will see the benefits

What Apple’s RCS embrace means for messaging

Meet the People - Rafal Nowak

SMS still a winner for authentication – for now

Message Wars

The Changing face of A2P