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SAP Mobile Services: Boosting trust, building business
SAP Mobile Services: Boosting trust, building business
SAP Mobile Services: Boosting trust, building business
SAP Mobile Services: Boosting trust, building business
SAP Mobile Services: Boosting trust, building business
SAP Mobile Services: Boosting trust, building business
SAP Mobile Services: Boosting trust, building business
SAP Mobile Services: Boosting trust, building business
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SAP Mobile Services: Boosting trust, building business

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In some African and Middle Eastern countries, the practice of outsourcing international traffic management is seen by regulators and Ministries of Communications (MoCs) as a means to get their fair …

In some African and Middle Eastern countries, the practice of outsourcing international traffic management is seen by regulators and Ministries of Communications (MoCs) as a means to get their fair share of revenues from local operators. The outsourcing model is considered by MoCs as a way round the notion that operators declare lower levels of international traffic than they actually handle, resulting in lower payments to the local MoC.

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  • 1. Boosting Trust, Building Business SAP Mobile Services, Operator Guide 2013 Ranjeet Wilkhu, Director, Neucom Solutions
  • 2. Boosting Trust, Building Business In some African and Middle Eastern countries, the practice of outsourcing international traffic management is seen by regulators and Ministries of Communications (MoCs) as a means to get their fair share of revenues from local operators. The outsourcing model is considered by MoCs as a way round the notion that operators declare lower levels of international traffic than they actually handle, resulting in lower payments to the local MoC.
  • 3. Boosting Trust, Building Business While outsourcing may be a way to collect ‘true’ revenues, MoCs and regulators have to balance between enforcing license conditions without damaging competition at the consumer level and having a negative impact on quality of service (QoS). The two operating models gaining traction with MoCs are monitoring operator traffic streams and outsourcing international traffic management to third parties.
  • 4. Boosting Trust, Building Business Mixed Results The first model focuses on new control and visibility – some MoCs have empowered the regulator to have access to near real-time data for all international traffic – voice, SMS, MMS – managed by local operators. This allows the MoC to calculate and collect correct amount of levy from the operators. The other business model being adopted is around third-party management – according to this model, the MoC outsources international traffic management to an independent third party or to an international Wholesale Operator. Domestic operators are then required to send and receive international calls through single or multiple international gateways managed by the third party.
  • 5. Boosting Trust, Building Business Some MoCs have even gone so far as to outsource financial settlements between local operators and international operators, making the third party responsible for billing, collections and payments. In this scenario the third party may also earn revenue from the financial transaction and may be entitled to a percentage of revenue, or be permitted to charge a fixed fee plus a share of revenues, or gross margin. Under the latter model, local operators are concerned that their interests and the interests of the third party – are not aligned. Put another way, operators believe the third party may be more focused on maximising profit for themselves than on reducing termination cost for the operator, or delivering QoS for the customer.
  • 6. Boosting Trust, Building Business
  • 7. Boosting Trust, Building Business For the complete article, updates and to join the conversation please visit: https://community.sapmobileservices.com Download the complete guide here: http://sap.com/mobileoperatorguide
  • 8. © 2013 SAP AG or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices. ©  2013 SAP AG or an SAP affiliate company. All rights reserved. 8

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