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Mobile business special-report 11 2016

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Mobile business special-report 11 2016

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Mobile business special-report 11 2016

  1. 1. INDEPENDENT PUBLICATION BY 30 / 10 / 2016#0413raconteur.net Mobile is a powerful and fast-moving force transforming the way we live and work From 1G to 4G and beyond, the mobile phone has rapidly evolved to change lives forever Mobile technology impacts most, if not all, walks of working life, but some more than others ARE WE A NATION OF ‘SCREENAGE’ JUNKIES? DISRUPTIVE POTENTIAL OF MOBILE TECHNOLOGY MOBILE MOMENTS THAT CHANGED THE WORLD EXECUTIVE JOBS MOBILE WILL AFFECT MOST As boundaries between work and leisure blur, smartphones are always in our lives 03 04 06 08 MOBILE BUSINESS Visit our website: www.mtmy.io Advertising that delivers exceptional return on ad spend. Ad agency for mobile apps Although this publication is funded through advertising and sponsorship, all editorial is without bias and spon- sored features are clearly labelled. For an upcoming schedule, partnership inquiries or feedback, please call +44 (0)20 8616 7400 or e-mail info@raconteur.net Raconteur is a leading publisher of special-interest content and research. Its publications and articles cover a wide range of topics, including business, finance, sustainability, healthcare, lifestyle and technology. Raconteur special reports are published exclusively in The Times and The Sunday Times as well as online at raconteur.net The information contained in this publication has been obtained from sources the Proprietors believe to be correct. However, no legal liability can be accepted for any errors. No part of this publication may be repro- duced without the prior consent of the Publisher. © Raconteur Media SIMON BROOKE Award-winning freelance journalist, who writes for a num- ber of international publications, he specialises in lifestyle trends, health, busi- ness and marketing. GABRIELLA GRIFFITH Freelance business journalist and as- sistant commercial editor at News UK, she has also worked for City A.M. and Management Today. BENJAMIN CHIOU Business and eco- nomics writer, his specialisms include a range of topics including financial markets and com- modities. GIDEON SPANIER Head of media at advertising maga- zine Campaign and Broadcasting Press Guild chairman, he writes about busi- ness for the London Evening Standard and The Times. NICK EASEN Award-winning free- lance journalist and broadcaster, he pro- duces for BBC World News and writes on business, economics, science, technology and travel. TIM STAFFORD Freelance journal- ist, specialising in business and management, he was launch editor of CEB Blogs. FINBARR TOESLAND Freelance journal- ist, he specialises in technology, business and economic issues, and contributes to a wide range of publications. MARK FRARY Science, technology and business writer with eight published books, he speaks reg- ularly on technology and futurology at conferences. DISTRIBUTED IN PUBLISHED IN ASSOCIATION WITH BUSINESS CULTURE FINANCE HEALTHCARE LIFESTYLE SUSTAINABILITY TECHNOLOGY INFOGRAPHICS raconteur.net/mobile-business-2017 RACONTEUR PUBLISHING MANAGER Nathan Wilson DIGITAL CONTENT MANAGER Jessica McGreal HEAD OF PRODUCTION Natalia Rosek DESIGN Samuele Motta Grant Chapman Kellie Jerrard PRODUCTION EDITOR Benjamin Chiou MANAGING EDITOR Peter Archer CONTRIBUTORS SMARTPHONE PENETRATION UK SMARTPHONE FORECAST Source: eMarketer 2016 UK must move faster to keep up with mobile Although a frontrunner in mobile development, the UK is now showing signs of fatigue and falling behind global competition OVERVIEW NICK EASEN B y any measure the UK has one of the most advanced and de- veloped mobile phone markets on the planet. Walk up any high street and there’s no doubt that we have an insatiable desire to interact and trans- act on our handsets. The UK is ranked in the top ten globally when it comes to harnessing information technology, according to a recent ranking by the World Economic Forum. It helps that the telecoms market is one of the most competitive and regulated in the world. “The UK’s smartphone appetite for faster mobile speeds continues to grow,” says Derek McManus, chief operating officer at O2. “Four in every five adults own a smart- phone and 4G data usage has almost dou- bled in the last year. The consumer appe- tite and growth oppor- tunity are clear.” MarketssuchasSouth Korea, Japan and the United States have long led the global race, but for some measures the UK ranks favourably. For example, access to phone banking is far more advanced here than across the Atlan- tic. The UK also has some of the world’s fast- est mobile internet speeds, according to a report by content delivery company Akamai. “We know that 92 per cent of British mil- lennials now view their mobile as their primary device for accessing the inter- net,” says Chris Worle, digital strategy director at investment firm Hargreaves Lansdown. “The UK has one of the most sophisticated markets in the world.” And when squared up to Continental Europeans, the UK is a 600-pound goril- la – it’s one of the largest in terms of sub- scribers, as well as total revenues, and has some of the most competitive pricing. It is also one of the most advanced in terms of roll-out and up-take of 4G. So the market should be in rude health, right? Not quite. While brand names have evolved over three decades alongside handsets, the big players driving the market have largely stayed the same. Four operators dominate – BT’s mobile busi- ness EE, Vodafone, Hutchison’s Three and Telefonica’s O2 – all heavyweights on the international scene. “Had the merger earlier this year be- tween O2 and Three not been stopped by the EU, things could have been very dif- ferent,” explains Ernest Doku, telecoms expert at uSwitch.com. “Austria reduced its operators from four to three and prices there soared by up to 30 per cent.” Competition is fantastic for consumers, but it’s not great for a sector that’s been consolidating globally because of price squeezes. The UK is also highly saturat- ed, for instance mobile penetration in the US and Europe’s big five countries has reached 91 per cent, according to research by Kantar, and now ageing infrastructure dogs the sector. “The return on in- vestment for mobile operators is meagre to say the least. This needs to be ad- dressed,” says Simon Beresford-Wylie, chief executive of Arqiva, providers of mobile infrastructure. Telecoms companies have also com- plained about BT’s lack of investment in infrastructure. Many were disappointed when the regulator did not force it to sell its Openreach business outright. This company owns the pipes and cables that connect nearly all businesses and homes in the UK. “The regulator wants BT to place more em- phasis on improving the network, but this will be costly,” says Helal Miah, investment research analyst at the Share Centre. The UK was at the forefront of deploy- ments in 2G and 3G. When 4G came along, the country lagged behind South Korea, Japan and the US. Many European mar- kets already have 100 per cent coverage; the UK does not. The regulator wants BT to place more emphasis on improving the network, but this will be costly South Korea will also unveil the next generation 5G in 2018 to coincide with the Winter Olympics. In the UK, it is unlikely to be launched until at least 2020. “5G will be important since it has the potential to support a whole new range of applications and industries. If the UK is serious about having a vibrant digital econ- omy, being a 5G leader is a must,” says Mr Beresford-Wylie. “This will be a basic competitive require- ment for advanced economies. If we’re not a 5G leader, there will be negative consequences for the economy and our global competitiveness.” Yet who is going to utilise these services? At present the con- suming public is suffering from handset fatigue, which shows few signs of abating. This not just a national issue but something with global impact, which is keenly felt in the UK where Apple and Sam- sung dominate. Globally mobile services are now becom- ing more like other utility services and therefore as time progresses the consumer is increasingly differentiating contracts in terms of price. “Let’s hope that we don’t end up with a mobile market that resembles the supermarket sector,” says Mr Miah. Some providers have now made strides towards new payment structures, sepa- rating airtime from handset costs, for in- stance. “But we’re some way from a truly value-driven market in terms of what cus- tomers are getting for their money in a Eu- ropean context,” says Mr Doku. One of the biggest developments in the UK going forward will be the increasing uptake of multi-play services, broadband internet, television and telephone with mobile thrown in, also called quad-play. Consumers are used to separate suppli- ers, but this situation is changing. “Con- vergence is key and what that means for pricing discounts,” says Guy Peddy, head of European telecoms research at Mac- quarie Group. The question is whether fast-growing and profitable mobile services should subsidise fixed lines or ageing infra- structure. “The main challenges facing operators will also be maintaining voice prices anywhere close to current levels in this multi-play environment,” explains Dr Windsor Holden, head of forecasting at Juniper Research. Making the UK’s mobile sector work and pay in the years to come could be a tricky business. Share this article online via raconteur.net If we’re not a 5G leader, there will be negative consequences for the economy and our global competitiveness Penetration is the percentage of mobile users who own a smartphone Globalsmartphoneusers(bn) Penetrationrate 47.9m people in the UK are expected to have a smartphone in 2020, up from 38 million in 2015 86% of UK mobile users use a smartphone 2014 2015 2016 2017 2018 2019 2020 Global smartphone users (bn) Global penetration rate UK penetration rate 90% 80% 70% 60% 50% 40% 30% 3.0 2.5 1.5 0.5 0 2.0 1.0
  2. 2. MOBILE BUSINESS raconteur.net2 RACONTEUR30 / 10 / 2016 Ms Robinson of M&C Saatchi Mobile be- lieves annoying, interruptive ads are the single biggest “frustration” for consum- ers and this has driven the adoption of ad-blocking. Despite the efforts of repu- table, leading companies to clean up the mobile ecosystem, she warns: “Unfor- tunately, there have been an increasing number of rogue ad players looking to monetise by duping consumers into un- intended engagement.” She says it is not difficult to give people what they want. Being able to skip ads and being able to stop ads that slow page-load- ing are the top priorities for consumers, according to Ms Robinson. “This demon- strates that there is still a lot of work to do on the basics,” she says. “Advertisers need to understand that you can’t just repurpose print or digital ads for mobile; you need to design for the screen and most importantly for the consumer.” Mr Clarkson of Yahoo agrees. “I think that ad delivery and experience are more important than targeting when it comes to creating better consumer feeling to- wards ads,” he says. “If the ad experience is good, clean and non-interruptive, and the targeting is relevant, consumers are happy to accept the ads.” Mr Franks says creating relevant, per- sonalised advertising can work, but it must be done with care. “Mobile is a much more personal device and therefore the risk of getting advertising wrong can be higher,” he says, noting the European Union is bringing in tougher rules, called COMMERCIAL FEATURE Share this article online via raconteur.net Can marketers halt the rise of the ad-blockers? Mobile marketers, facing the prospect of ad-blockers obliterating their message from smartphone screens, must find a way to win back consumers fed up with irrelevant or intrusive advertising AD-BLOCKING GIDEON SPANIER M arketers face a dilemma about mobile. The smart- phone has become the pri- mary screen for consumers, so brands have been investing billions of pounds in mobile advertising to reach their target audiences. But because the phone is such an intimate, personal me- dium also poses a huge challenge as con- sumers have become increasingly resist- ant to the growing number of marketing messages they are receiving. The backlash against intrusive ads has driven a surge in ad-blocking on both desktop computers and mobile in the last 18 months, and forced brands, ad- vertising agencies and telecom firms to reconsider what marketing will work best on mobile. The media industry’s hope is that a more selective, relevant and personalised ap- proach will appeal to consumers, rather than bombarding them with irrelevant or intrusive messages that slow page-load times and eat up their data allowance. Mobile advertising continues to grow rapidly. Global revenues almost dou- bled last year to $53 billion, according to Zenith, a media-buying agency, which forecasts they should more than double again to reach $134 billion in 2018. Yet the signs are that ad-blocking is still on the rise. “The main trend over the last year has been the shift of ad-blocking from desktop to mobile,” says Robert Franks, managing director of commerce at the mobile phone giant O2 UK. “But adoption of ad-blocking in North America and Europe lags other continents, which is interest- ing considering high levels of smartphone adoption [in the West].” Libby Robinson, Europe, Middle East and Africa managing director of ad agency M&C Saatchi Mobile, says: “China, India and Indonesia are leading the charge with the highest number of ad-blocking brows- ers used globally.” She cites eMarketer data that shows 5.8 per cent of UK internet users are using ad-blockers on mobile compared with 21 per cent worldwide. Stuart Bowden, global strategy officer at media-buying agency MEC, says Google and Facebook, the two biggest platforms for mobile advertising, have been able to fend off the threat of ad-blockers because their mobile apps are “walled gardens” where blocking technology largely does not work. “That means the effect of ad-blocking is focused on their weaker, more tradi- tional, open mobile web competitors,” says Mr Bowden. “Many of these sites re- spond by trying to increase the amount of ad units on their mobile pages, which just exacerbates the problem and drives more ad-blocking.” The ad overload can be “gruesome”, he warns. Nigel Clarkson, UK managing director of Yahoo, believes the adoption of ad-block- ers may be stabilising as smart publishers learn from consumers’ behaviour. “We are seeing as many as 15 per cent of people disabling their ad-blocker for various reasons, including their favour- ite websites asking them to, switching devices and not re-installing it, content being blocked as well as the ads, and the ad-blockers not working properly,” he says. Making consumers understand there is a value exchange – that advertising helps to fund the cost of content and if they refuse to accept advertising then they will have to pay – is crucial. O2 has found most consumers still want ad-funded services despite their mis- givings about mobile advertising. “Ac- cording to a survey we conducted earlier this year, 61 per cent of consumers would rather accept ads than pay for content and 48 per cent wouldn’t pay for an ad blocker,” says Mr Franks. He goes on to cite research by the In- ternet Advertising Bureau, the trade body for the online ad industry, which identified a number of reasons why users are blocking ads. Firstly, they feel such ads are interruptive or annoying. Sec- ondly, they worry that ads slow down web-browsing. Thirdly, they feel the ads may be irrelevant. Fourthly, they have privacy concerns. the General Data Protection Regulation. “But equally the opportunity is far great- er for richer, more immersive experience, if advertisers have the right permissions and can leverage the sensors on the device to offer an amazing experience.” He explains how Weve, O2’s mobile ad- vertising platform, has created mobile ad campaigns for leading automotive brands that utilise the gyroscope in the phone to enable consumers to have a 360-degree look around the inside of a new model of car to promote its launch – an in- novative and highly engaging form of mobile marketing. Mr Clarkson is also optimistic and re- jects the suggestion that the smartphone screen is too intimate and personal to work for most advertising. “Quite the opposite,” he declares. “A mobile screen held up to eye level has a similar arc of vision to being sat ten feet away from your wall-mounted television. “The personal nature of the screen means deeper engagement and the abil- ity to touch, scroll, and control ads is a far better tool for creatives and clients to play with. The bigger challenge is getting creative teams to think about mobile ex- periences differently to other screens, for example making vertical video content which sits better in mobile.” A ten-sec- ond clip might work better on mobile than a classic, thirty-second TV spot, says Mr Clarkson. Mr Bowden says the media and market- ing industry needs to challenge itself to be far more radical in the way it uses mobile. While Mr Clarkson believes the rise of “native” advertising, particularly video, which blends in with content and is not interruptive, is the way forward. New technological opportunities, which are likely to emerge in the near-future, excite Mr Franks. “Augmented reality has the potential to deliver a truly engaging experience,” he says, recalling the recent craze for mobile game Pokémon GO. “An- other interesting development is ‘cross- screen’ where advertising can be deliv- ered on different devices that consumers are using.” The so-called internet of things, which will mean we can control household ap- pliances and cars from our phones, opens up other marketing opportunities. Whatever the future for mobile, we can be sure we will be spending a lot of time with portable devices. And where people go, advertisers follow. MOST ANNOYING TYPES OF MOBILE ADS Source: Hubspot 2016 RikkiChan/Unsplash PERCENTAGE OF EUROPEAN AND US ONLINE USERS WHO RATED THE FOLLOWING 'HIGHLY ANNOYING' 5.8% 48% of UK internet users are using ad-blockers on mobile, compared with 21 per cent worldwide wouldn’t pay for an ad-blocker Source: eMarketer 61% of UK consumers would rather accept ads than pay for content Source: O2 73% 65% 49% 40% 39% 31% Ads that pop over my entire screen Ads that seem to follow me from my computer to my phone Video ads in games Video ads on YouTube Video ads in general Text-based ads "M obile first” is the buzz phrase that is driving advertising strategy around the world as brands and advertisers look to make this rapidly growing channel central to their marketing programmes. "The appeal of mobile is obvious," says Richard Nunn, chief revenue of- ficer at RhythmOne, an online adver- tising company that connects digital audiences with brands through premi- um content across devices. He cites a recent report by Deloitte that revealed Americans checked their phones on av- erage 48 times a day last year, up from 33 times, while those in the 18 to 24 age bracket did so on 74 occasions daily. “It’s largely about scale,” he says. “There are around two billion devices globally and so mobile is the best way for advertisers to reach eyeballs. Improved targeting is also positioning mobile as the most pow- erful of all advertising channels. “You can target by device, by operat- ing system and by time of day, as well as a variety of audience demographics and purchase behaviours. Couple this with the location-based targeting unique to mobile and you have a powerful combination.” "However, advertisers are just be- ginning to grasp the full potential of mobile," Mr Nunn argues. He points to research from Kleiner Perkins Caufield & Byers (KPCB), which shows that while consumers spend about around 25 per cent of their screen time on mobile media, advertisers are only allocating around 12 per cent of their advertising budget to this channel. Compare this with print, which rep- resents a mere 4 per cent of media con- COMMERCIAL FEATURE GETTING MOBILE MARKETING MOVING Mobile is growing fast, but it’s still underutilised. So how can advertisers and publishers make the most of this exciting and highly effective channel? sumption time, but swallows up 16 per cent of advertising spend. KPCB calcu- lates this gap represents a $22-billion op- portunity for advertisers to align better with consumer consumption habits. So what should advertisers be doing to make the most of mobile’s vast power to reach consumers? Firstly, they have to think creatively. “It’s about using var- ious mobile ad formats, including video, and leveraging the native features of the device, like the accelerometer, to create entertaining and informative advertis- ing experiences that will appeal to au- diences and make them want to engage with it,” says Mr Nunn. The most effective mobile advertising, he explains, is a fusion of art and science. “The art is the creativity – the best creative ad- vertising ideas really resonate. The science is the data - the ability to precisely segment and target your audience” he says. Secondly, brands need to exploit the full potential of mobile data to create more dynamic ad experiences. A cam- paign could, for instance, not only hone in on the appropriate demographic, but also take into account the time of day to serve a consumer an ad that features the sun setting out the window. It could also leverage weather inputs. When weath- er forecasts predict rain, a brand could use this to serve an ad that, for example, encourages consumers to snuggle up in- doors with a new down comforter. Mobile, by its very definition, allows advertisers to target consumers better by using geolocation. “It’s possible to tell, for instance, that I am a frequent consum- er at a quick-service restaurant,” explains Mr Nunn. “This information could be used in conjunction with my geolocation and competitor chains could target me with a special offer when I am in the vicinity of one of their locations.” Thirdly, mobile-infused influencer marketing offers significant and growing potential, especially for younger audi- ences. Influencer marketing is expected to grow to $1 billion by 2018, according to user-generated media research com- pany Technorati. Meanwhile, market research company eMarketer calculates that US native display advertising spend- ing is projected to surpass traditional dis- play ad spending this year before going on to grow at double-digit rates for the next few years. “Imagine that you’re an olive oil man- ufacturer,” says Mr Nunn. “You could ap- proach an influencer, such as a chef with a well-known social presence, and pay them to create video content for mobile in which they use your olive oil in a variety of recipes they prepare.” Influencer content is powerful and im- pactful. However, the real benefit comes from amplification. An influencer might have two million followers, but by build- ing a look-alike profile, we can create an audience-based targeting segment and use programmatic exchanges to amplify distribution among consumers with simi- lar characteristics. These people will then receive an ad that features some of the best influencer-created content, thereby extending the reach of the campaign. Fourthly, creating engaging, absorb- ing mobile-optimised video and serving it to carefully segmented audiences is also essential. Agencies should com- bine creativity with targeting. “For many demographic groups, nearly all video consumption occurs on a mobile device,” says Mr Nunn. “If you are an apparel retailer, mobile may be the ide- al vehicle to reach different consumer segments with highly bespoke video content featuring look-books of age and gender-specific fashions. Video is the highest performing and highest growth area on mobile.” Finally, in order to target audienc- es most accurately and to exploit the huge benefits of scale that mobile of- fers, advertisers need to embrace pro- grammatic. RhythmOne’s programmatic exchange RhythmMax, for example, pro- vides a turnkey platform that connects publishers with advertisers in an auc- tion-based environment, with transac- tions being made in the space of just 120 milliseconds around the globe 24/7. In this way, programmatic can help brands scale their mobile campaigns efficiently. Putting together these five elements will help brands and advertisers to take advantage of mobile’s unique potential to reach and engage audiences. However, the scope of mobile is con- stantly being extended, according to Mr Nunn. Big data, wearables and the inter- net of things are among the innovations that are already coming online, as is vir- tual reality, which allows a mobile phone user to “visit” a virtual store and view it in 360 degrees. “There’s so much potential,” he says. “It’s those brands and advertisers that can exploit and then co-ordinate all these exciting elements to get a single, accu- rate view of the customer that will reap the rewards.” For more information please visit www.rhythmone.com Source: Advertising spend based on IAB data for full year 2015. ~$22BN opportunity calculated assuming mobile ad spend share equal its respective time spent share. Time spent share data based on eMarketer 4/16. Excludes out-of-home, video game and cinema advertising TIME SPENT IN MOBILE V MOBILE ADVERTISING SPEND UNITED STATES 2015 Total internet ad spend = $60BN of which mobile ad spend = $21BN Time spent Ad spend 25% 12% ~$22BN opportunity Advertisers are just beginning to grasp the full potential of mobile 01BE CREATIVE Use the unique features of mobile devices to create imaginative, engaging campaigns. 02ENSURE TARGETING IS ACCURATE Make the most of location based geo-targeting and user data. 03EXPLOIT INFLUENCER AND CONTENT MARKETING Use the reach of mobile in conjunc- tion with social programmes to am- plify distribution of branded content. 04USE VIDEO CONTENT Video is highly attractive to mobile audiences and searches for video content are growing faster than text and static images. 05ADOPT PROGRAMMATIC SCALE AND DELIVERY TO IMPROVE AUDIENCE TARGETING Cross-device targeting can help to put mobile at the centre of the cus- tomer journey. FIVE WAYS TO GET YOUR MOBILE MOVING Richard Nunn Chief revenue officer RhythmOne
  3. 3. 30 / 10 / 2016RACONTEUR raconteur.net 3MOBILE BUSINESS based platform for collaboration called Workplace by Facebook. The social media giant has been using the system inter- nally for a number of years and started testing the service with a thousand com- panies, including Starbucks, Danone, Oxfam and Booking.com, in countries around the world a year ago. Workplace includes the Newsfeed, Chat and Group features familiar to users of the personal version of Facebook, but also new features such as analytics and single sign-on with enterprise IT sys- tems. There are also multi-company groups, enabling companies in supply chains, for example, to collaborate in the mobile environment. Waitrose is one of a number of compa- nies recognising that smartphones have a key role to play in the workplace. Over the summer it rolled out its Quick Check Are we a nation of ‘screenage’ junkies? As the internet and social media intermingle with work and leisure time, smartphones seem always to be in our lives MOBILE JUNKIES MARK FRARY H ow often do you check your smartphone a day? Most peo- ple tell researchers it averages between 20 and 30 times. Yet what shocks people is that when their mo- bile phone usage is actually monitored, the number is more like 85 times a day. Sally Andrews of Nottingham Trent University was one of the first research- ers to measure phone usage, not by asking users themselves, but by using technology to monitor when the screen switched on and off. “It was a bit of a shocker for some to be told that they were using their phones for up to half of a working day,” says Dr Andrews. “Our subjects didn’t really believe it.” She says increasing smartphone use is in part down to a blending of the bounda- ries between working and private lives as some companies now expect employees to be at the end of a text or e-mail 24/7, throwing the traditional nine to five out the window. At the same time, individ- uals are now beginning to think that it is perfectly acceptable to check their social media messages in the office. Dr Andrews’ study monitored people over the course of 14 days, both day and night, and for each subject they created a “barcode” plotting usage. Drilling into the data in more depth, the team showed that the average amount of time spent on the phone was more than five hours. Over half the incidences of using the phone were less than 30 sec- onds in distraction, suggesting subcon- scious checking for new messages or re- acting to notifications. So should mobile usage in the work- place be discouraged? The jury is out on whether using a smartphone boosts or saps productivity. Research carried out by Frost & Sullivan and paid for by smartphone manufac- turer Samsung of 500 executives found that respondents believed they gained an hour in both work and personal time from using smartphones. The research claimed that productivity among these executives had increased by 34 per cent. By contrast, a survey of 2,186 human re- source professionals for CareerBuilder in early-2016 found that one in five believed their workers were productive for less than five hours a day. Some 55 per cent of employers said employee mobile phone use was the culprit. Rosemary Haefner, chief human re- sources officer at CareerBuilder, says: “While we need to be connected to devic- es for work, we’re also a click away from alluring distractions from our personal lives like social media and various other apps. The connectivity conundrum isn’t necessarily a bad thing, but it needs to be managed. Have an open dialogue with employees about tech distractions. Ac- knowledge their existence and discuss challenges and solutions to keeping pro- ductivity up.” In some of the most recent research into this area, Cary Stothart and colleagues at Florida State University found that just receiving notifications was detrimental. The team asked participants in a study to carry out an attention-demanding com- puter task. Some of these were interrupt- ed by a mobile phone call, some with a text and some were not disturbed. The authors of the research paper say: “Although these notifications are gener- ally short in duration, they can prompt task-irrelevant thoughts or mind-wan- dering, which has been shown to damage task performance. Cellular phone no- tifications alone significantly disrupt performance on an attention-demand- ing task, even when participants do not directly interact with a mobile device during the task.” With people checking their phones 85 times a day on average, the obvious question to ask is whether we are addicted to them. Telecoms regulator Ofcom carries out re- search into device and internet usage every year in its Communications Market Report. In an indication of what we might expect in years to come, younger people are revealed as spending far more time on their smartphones (five hours a day) than the average two hours. This age group is also better at multitasking, such as sending messages while simultaneous- ly watching television, cramming in 13 hours and 11 minutes of media and com- munications activity into 8 hours and 56 minutes of actual time on their devices. The “screenager” generation is certainly growing up. Ofcom’s research shows that mobile phones are increasingly encroaching on our working lives with most saying they have increased the flexibility of working life, but no doubt meaning that is harder than ever to switch off. The 2016 Ofcom report says adult users in the UK are spending an average of one day a week online. Three out of five internet users admitted they considered themselves hooked on their device while just over a third said they found it hard to disconnect. Jane Rumble, Ofcom’s director of market intelligence, says: “The inter- net has revolutionised our lives for the better. But our love affair with the web isn’t always plain surfing and many people admit to feeling hooked. “So millions of us are taking a fresh look Our love affair with the web isn’t always plain surfing and many people admit to feeling hooked USAGE OF SMARTPHONE WHILE DOING OTHER ACTIVITIES AVERAGE TIME SPENT A DAY USING A SMARTPHONE UK survey of people who own or have access to a smartphone only Includes all time spent on a smartphone, regardless of multi-tasking Source: Deloitte 2016 Source: eMarketer 2016 at the role of technology in our lives and going on a digital detox to get a better tech-life balance.” Despite the potential risks to productiv- ity, companies are actively introducing smartphone technology to help in many areas, such as increasing the flexibility of their workforce, particularly as many employers have adopted hot-desking and allowing employees to work from home. Unified communications (UC) systems have been at the forefront of this trend. Early UC systems were simply a way of enabling calls on fixed landlines to be forwarded to mobile devices. Now UC systems additionally comprise elements such as real-time staff directories to show whether employees are present in the office or are on the road, desktop-based video conferencing as well as integrated instant messaging. Such systems enable virtual call centres, where employees are in different locations with the consumer blissfully unaware. They are also helping to reduce the costs of business travel for internal meetings. The UC market is now forecast to be worth $96 billion by 2023, according to Global Market Insights, on the back of rising adoption of mobile devices. Rather than trying to fight the use of smartphones in the workplace, some companies are actively embracing it. Facebook has recently launched a work- Share this article online via raconteur.net You will probably hear a lot about the so-called internet of things in the next few years. It is essentially the idea of connecting otherwise dumb objects, such as fridges and traffic lights, to the internet using mobile technology to enable them to work smarter or help users save money. The growth in the number of companies working in ways that would have been impossible without mobile connectivity is growing by the day, from the pregnant cows with Moocall sensors on their tails to alert the farmer when they are about to give birth, to clever cars that communicate with each other to stop them colliding, despite what the person behind the wheel does. Another company that has mobile connection at the heart of its business model is pay-as-you-go energy company Utilita. The company was founded in 2004 on a hunch that smart meters – electricity meters permanently connected to the mobile phone network – would be a perfect solution for pre-pay customers. What is attracting prepay customers to the company is innovation in technology, giving customers smart meters and the ability to pay via an app when their credit runs out rather than racing to a shop on a rainy night to top up their account. Prepay customers have typically paid a premium to buy their electricity, but Utilita has put an end to that. “Price is what we sell on – it will save you a bob,” says chief executive Bill Bullen. “The thing that gets people is that we have applied modern technology to the problem and it is making the stigma of prepay disappear. Lots of people have prepay mobile phones so topping up using a mobile phone is almost anti-stigma.” SMART WAY TO RUN A COMPANY MOBILE ADDICTION IN THE UK “scan as you shop” app to members of its myWaitrose loyalty scheme on both iOS and Android. The app replaces the retailer’s initial Quick Check service, which is based on dedicated hand-held scanners and has run for the past ten years. The new app means customers can now scan items in their basket with their own smartphone. Matt Clifton, the company’s head of retail change, says: “We know that cus- tomers are shopping little and often, and therefore want the experience to be as convenient as possible. Being able to complete a whole shopping experience using only a smartphone means that shoppers can scan as they go, benefit from tailored offers, detailed product in- formation and pay anywhere in the shop. The dynamic world of smartphone tech- nology means that the future capabilities of this app are endless.” Ultimately, the smartphone and other mobile technologies are certain to be ev- er-present in the workplace and younger employees will expect to be able to use them, even if they are unwittingly be- coming addicted. It is incumbent on em- ployers to make sure they are used for the corporate good. UNACCEPTABLE DEVICE USAGE IN SOCIAL SITUATIONS Source: Ofcom 2016 * Source: Ofcom 2016 ** Source: Deloitte 2016 16-24 65+BY AGE GROUP Percentage of internet users who think it is unacceptable to use a smartphone in the following situations INTERVALS BETWEEN THE LAST CHECK OF A SMARTPHONE ACTIVITIES CHECKED ON A SMARTPHONE IN THE MIDDLE OF THE NIGHTUK survey of people who own or have access to a smartphone only UK survey of people who own or have access to a smartphone only Source: Deloitte 2016 Source: Deloitte 2016 BEFORE PREPARING FOR SLEEP 10%Immediately 27%Within 5 minutes 43%Within 15 minutes 58%Within 30 minutes 77%Within an hour 87%Within 3 hours AFTER WAKING UP 10%Immediately 33%Within 5 minutes 52%Within 15 minutes 69%Within 30 minutes 86%Within an hour 93%Within 3 hours Check the time 22% Respond to instant messages 6% Read work e-mails 2% Check instant messages 11% Read news 5% Read a book 2% Check social media notifications 9% Play games 4% Respond to work e-mails 1% Respond to personal e-mails Check personal e-mails 8% 3% I don’t check my phone during the night 66% Taking selfies in public places 12% 39% When on public transport 8% 45% While walking along the street 10% 45% Using a phone to record videos/take photos at a live event 45%14% While watching TV with others 13% 57% While out socialising with friends 51%14% During meals with others at home 40% 76% INTENSITYOFUSAGE(%) INTRUSIVENESSLOW HIGH 2012 2013 2014 2015 2016 2017 201860 50 40 30 20 10 0 1 2 3 4 5 Using public transport Watching a film/TV While out shopping Talking to family/friends In a business meeting Crossing the road Eating in a restaurant with family/friends Driving Eating at home with family/friends At work Walking Meeting friends on a night out Spending time with family/friends HOURS:MINUTES 0:36 0:55 1:13 Forecast Actual 1:29 1:46 1:592:09 59% of internet users say they are hooked on the device they're most likely use to go online* 32% have had a friend or relative tell them they spend too much time online* 25% have someone bump into them at least once a week because they were too busy looking at their phone* 34% find it hard to disconnect from the device* 9% use their smartphone to pay for taxi fares** 34% of consumers check their smartphone during the middle of the night** 29% check text messages first after waking up** 12% bump into someone at least once a week because they were too busy looking at their phone*
  4. 4. MOBILE BUSINESS raconteur.net4 RACONTEUR30 / 10 / 2016 COMMERCIAL FEATURE Disruptive potential of mobile technology Mobile is a powerful and fast-moving disruptive force which is rapidly transforming the way we live and work I nnovative mobile technologies have been responsible for dis- rupting established companies in virtually every industry, with apps such as Uber and Apple Pay show- ing the potential mobile solutions have to change our lives for the better. The increasingly interconnected world we live in is creating new opportunities for forward-thinking companies to de- velop enterprising services that utilise mobile technologies. Countless technological advance- ments that are hailed as the next big thing fizzle out before making any meaningful impact, but mobile still has the ability to drive major social and economic transformations. It’s not just businesses that will be changing in the wake of mobile dis- ruption, the way we communicate with each other and carry out day- to-day tasks will be simpler than ever before. From universal translators to artifi- cial intelligence-based personal assis- tants, innovations that were once be- lieved to be light years away are now in clear sight due to the rapid pace at which mobile is progressing. Time will tell when these transformative ideas come to fruition and when they do we will wonder how we ever lived without them. Share this article online via raconteur.net 01UNIVERSALTRANSLATORS Once thought of as only possible in sci- ence fiction, real-time universal trans- lators are on track to be reality in only a few years, with both startups and interna- tional technology companies working on innovative solutions. The Google Trans- late mobile app can provide two-way in- stant speech translation in 32 languages, although it’s not ideal for free-flowing conversations as you have to look at the smartphone for each translation. New York-based Waverly Labs have overcome this issue by creating an in-ear device called Pilot that connects with a dedicated smartphone app to translate conversations instantly. At the moment Pilot only works between two people wearing earpieces, limiting the situations where it could be used. However, future generations of the smart earpiece could listen to multiple people speaking different languages and still quickly translate their speech to the user. The company has raised more than $3.3 million on crowdfund- ing website Indiegogo, with an expected product release date of May 2017. Widespread adoption of universal translators will not be reached until the quality of translation is virtually perfect. The fusion of voice recognition, machine translation and mobile technology could soon make language barriers a thing of the past, and completely change how we travel and learn foreign languages. 03DISABILITY Well-designed smartphone apps that utilise the latest technological inno- vations can improve the lives of people with disabilities and enable them to live more independently. iPhone and Android app Be My Eyes connects vol- unteers with blind people who need help with everyday tasks, such as checking the expiry date on food, via live video chat. Once a blind person has sent a re- quest for help, a volunteer receives a notification and the video connec- tion can be made. The volunteer can then answer the question by simply describing what they see. Since launching, almost 400,000 sight- ed volunteers and 30,000 blind and visually impaired people have used this service. Other innovative apps use voice rec- ognition software to provide captions to deaf people on video calls, letting them “hear” what the person on the other end of the line is saying. Mobile app Talkitt has been life-changing for people with motor, speech and lan- guage disorders, such as ALS (amyo- trophic lateral sclerosis) and cerebral palsy, as it translates extremely hard- to-hear speech into clear prose. No matter what the disability, there is likely to be a mobile solution which can make life easier, especially for issues around mobility. 05EARTHQUAKE WARNING Seismologists have discovered an in- genious mobile solution that has the po- tential to make traditional earthquake early-warning systems more accurate and responsive, as well as providing vital early warnings to people in areas where there is no seismic network. A small chip found in smartphones, known as a micro-electro-mechanical system (MEMS) accelerometer, has been proven to detect earthquakes that register a magnitude of more than five. MEMS sensors were originally intended to change the orientation of the smartphone’s screen, but they also have the potential to create a real-time seismic network. Mobile app MyShake, developed by scientists at the University of Califor- nia Berkeley Seismological Laborato- ry, aims to give users an alert on their mobile several seconds before the earthquake hits, giving them much needed time to take cover. Thanks to the intelligent algorithm that under- pins the app, everyday movements can be easily differentiated from an actual earthquake, so much so that in sim- ulations the app correctly detects an earthquake 93 per cent of the time. The widespread use of smartphones with MEMS sensors allows for almost complete coverage to be achieved, with scientists believing this technology will soon become advanced enough that it will be able to identify even small earthquakes. 02PERSONAL ASSISTANTS Artificial intelligence-based person- al assistants are becoming more and more advanced, with improvements in speech-recognition technology making them a real threat to the job prospects of human PAs. Since the launch of Apple’s popular AI-based personal assistant Siri in 2011, dozens of other high-profile tech companies have released their own products. The latest intelligent personal assistants can do so much more than just check the weather or tell the time. Viv.ai, for example, can do everything from ar- ranging the perfect holiday to ordering a pizza. “Just like a human PA, an AI PA can adapt to your routine, habits and taste. Themaindifferenceisthattheydon’tget bored,” says Julien Hobeika, co-found- er of virtual assistant Julie Desk. “AI- based PAs work more efficiently and can do simultaneous tasks like writing an e-mail to thank a client for confirming a meeting, while inserting it in the agenda and purchasing a train ticket.” It might take a few years to get AI personal assistants on the same level as humans, with Julie Desk still requir- ing a human AI supervisor to give final approval before any e-mail is sent, but if machine-learning continues to de- velop at its current pace, mobiles will become fully fledged personal assis- tants very soon. 04HEALTHCARE Healthcare is perhaps one of the indus- tries most at risk of disruption by mobile technology, due to the massive gap be- tween demand and supply. Far from just offering relatively simplistic advice on how to live a healthier lifestyle, a range of healthcare apps are giving users access to services previously only avail- able at GP practices or hospitals. Artificial intelligence-based person- al health assistant Your.MD offers an alternative to a physical consultation with a doctor by using AI and ma- chine-learning to determine the proba- bility of a person’s condition, based on their symptoms, personal factors and wider medical history. “Mobile health (mHealth) apps have the opportunity to offer people pre-primary care sup- port so that in many situations it won’t be necessary to visit a doctor in the first place,” says Matteo Berlucchi, chief ex- ecutive of Your.MD. While it is highly unlikely that mHealth will make GPs redundant in the near future, if patients embrace these apps, they may be able to get an accurate and rapid diagnosis wherever they are through their mobile device. “Assisted self-care solutions can ser- vice the huge number of people suffer- ing from minor ailments, allowing GPs to have more time to dedicate to those patients with more complex condi- tions,” adds Mr Berlucchi. DISRUPTION FINBARR TOESLAND COMMERCIAL FEATURE M obile network operators (MNOs) have seen the demand for voice and messaging services dimin- ished by internet-based communication platforms such as WhatsApp and Viber. The GSMA, representing mobile opera- tors, reports that traditional voice reve- nues have declined by 56 per cent over the last five years and, overall, ARPU (average revenue per user) is down 12 per cent. At the same time, other over-the- top online services such as Netflix and Spotify are selling entertainment ser- vices directly to millions of increasingly content-hungry consumers. Mobile operators looking to build up their position and meet consumers’ ap- petite for digital services as new oppor- tunities present themselves, should be especially focused on emerging markets. Close to one billion new mobile connec- tions are forecasted over the next five years in these regions and, according to m-commerce technology firm Upstream, MNOs have the opportunity to capture a share from a potential $70-billion digital opportunity in emerging markets. Oper- ators have unique assets, which put them in a prime position to engage with cus- tomers and boost their revenues. Only if these assets are utilised effectively, how- ever, will they be able to make the most of this opportunity. BRAND EQUITY The GSMA has found that consumers are increasingly ready to trust mobile oper- ators with their finances. In December 2015 there were almost as many active mobile money accounts as active Pay- Pal users for the first time. Marco Ver- emis, chief executive and co-founder of Upstream, a leading mobile commerce platform, comments: “In emerging mar- kets, mobile network operators deliver a crucial service, often providing consum- ers their only window to the world. Op- erators, as day-to-day consumer brands, are highly recognised and trusted.” Research commissioned by Upstream found that consumers in emerging mar- PARTNERSHIPS ARE THE KEY How mobile operators can capture the $70-billion digital opportunity in emerging markets kets want more access to health (26 per cent) and financial services (23 per cent) on their mobile devices, as well as utilities and tools (21 per cent), such as battery or memory boosters and antivirus software. Brand credibility is particularly es- sential when offering services such as micro-insurance or mobile antivirus software. The GSMA reports that 70 per cent of respondents in Ghana would rather purchase insurance from an MNO than from an insurer. Such services are in high demand in emerging markets. Mr Veremis adds: “Consumers are ready to trust their operators for ser- vices such as micro-insurance or mo- bile utilities, a position that places them ahead of the curve when it comes to broadening their portfolio of services and ultimately increasing their ARPU. Given the weakening performance of traditional voice services, revenues from digital services are critical for for- ward-thinking mobile operators.” CONSUMER REACH Mobile operators enjoy unparalleled reach in emerging markets. Mobile device penetration in developing markets stands at 59 per cent, according to the GSMA. Moreover, operators typically own more than 20 marketing channels, such as SMS, USSD, SAT push, affording them a strong position when it comes to engaging cus- tomers. Owning the channels, however, does not mean they are necessarily uti- lised to their full potential. Mr Veremis points out: “Every channel requires bespoke expert optimisation for each market and offering. Our experience shows that partnering with mobile mar- keting experts can improve the effective- ness of MNO channels in customer acqui- sition by more than 20 per cent.” Operators also play a critical role with respect to providing internet access in developing markets. A recent Ericsson re- port found that in Nigeria mobile broad- band infrastructure is used 70 per cent of the time when consumers access the internet, across any device. The prevalence of mobile broadband in emerging markets opens up opportunities to use MNO infrastructure such as head- er enrichment for marketing purposes. This technology enables user authentica- tion over an operator-provisioned mobile broadband connection. Working with dig- ital marketing experts can help operators leverage their infrastructure to optimise customer acquisition flows. Upstream experience shows that the steps consumers need to take to subscribe to a service can be reduced from nine to two, thereby reducing sign-up time by up to 80 per cent. Even better, customer acquisition costs can be reduced by up to 90 per cent when using an optimal digital flow with header enrichment. PAYMENT CAPABILITIES Some 87 per cent of consumers in emerg- ing markets state they are willing to pay for high-value digital services via mobile devices, according to an m-commerce re- port commissioned by Upstream. With 80 per cent of people in emerging markets being unbanked, mobile operators are able to provide the ubiquitous solution for con- sumers paying for digital services. “When it comes to payment cards, the combined reach of Visa, MasterCard and Amex is currently at 18 per cent of the population in Sub-Saharan Africa. While M-Pesa was a runaway success in Ken- ya, mobile money payment options only reach 11 per cent of mobile phone users in emerging markets. That said, the most trusted and preferred payment method is direct operator billing, with 45 per cent of consumers in these markets expressing a preference for this payment method. It is available to anyone who has a mobile phone and it utilises a consumer’s airtime balance as a reliable form of digital cur- rency,” says Mr Veremis. The majority of mobile consumers in emerging markets are on prepaid plans, with an average airtime balance of often less than $2. Hence, offering the right kind of billing plantosuittheirtop-upfrequencyhabitsand corresponding income is critical. The most appropriate way to monetise consumption of digital services is the subscriptions-based, micro-payment business model. Responding to this, Mr Veremis puts forward his view: “A subscription model works well, but to really make it effective, the payments have to be small and occur more often, more commonly known as micro-payments. Working with a technol- ogy partner who really understands the needs of consumers in emerging markets, and who can provide the right platform and consumer data, typically can increase the percentage of successful charge rates by up to 50 per cent.” CUSTOMER DATA On top of all this, mobile network opera- tors have access to a wealth of data from their customers, from spending patterns and habits to their browsing preferences and demographics. Mr Veremis says: “The right use of operator customer data can really help unlock improvements in pay- ments, customer acquisition, and better targeting of digital services and offers.” In conclusion, mobile network opera- tors are exceptionally well placed to se- cure a significant share of the $70-billion digital opportunity in emerging markets. Trust in their brand is strong, they have unparalleled consumer reach and they hold the key to payment offerings for unbanked consumers. However, as Up- stream’s Mr Veremis concludes: “These unique assets are not always leveraged to their full potential. It helps a great deal to partner with a company that has deep mo- bile-commerce expertise, and can assist in maximising revenues and place operators at the top of the digital pyramid in devel- oping markets.” For more information please visit www.upstreamsystems.com It helps a great deal to partner with a company that has deep mobile- commerce expertise and can help maximise revenues in developing markets CUSTOMER ACQUISITION COMPARATIVE PERFORMANCE USE OF MNO CHANNELS TO RECRUIT SUBSCRIBERS TO DIGITAL SERVICES IN EMERGING MARKETS Performance indexed to 100 for comparison UPSTREAM MOBILE OPERATOR DIGITAL SERVICE PROVIDER Based on a case study with a leading Brazilian operator +17 +21 121 100 83 PENETRATION OF PAYMENT METHODS IN EMERGING MARKETS PERCENTAGE REACH OF POPULATION Source: GSMA Global Mobile Report 2016/Global Findex MOBILE MONEY (M-Pesa, Easypaisa) CREDIT CARDS (MC, Visa, Amex) CARRIER BILLING x15 x6 59% 10% 4%
  5. 5. 30 / 10 / 2016RACONTEUR raconteur.net 5MOBILE BUSINESS If a brand can produce helpful content, as well as their core service, it can remain at the forefront of a customer’s mind without becoming an annoyance RYANAIR Ryanair hasn’t always been an airline synonymous with digital prowess or indeed great customer care. But over the past two-and-a-half years, the company has invested heavily in becoming a mobile-first business. “Our mobile app has now had 13 million downloads and 15,000 customers use our mobile booking passes each day,” says Ryanair’s head of communications Robin Kiely. The My Ryanair customer registration service means the company is able to build up a profile of their frequent flyers and can use this to make tailored offers. “If someone regularly flies to, say, Barcelona, we can make discounted offers, such as have 20 per cent off next time and bring the kids,” says Mr Kiely. “We can also use booking information to make timely offers like, for example, if we know there are large queues at a particular airport, we can send a passenger a message to see if they want to buy a fast track ticket to bypass the queues.” Ryanair utilises social media as a point of contact for flyers. The @ Ryanair handle deals with customer queries and now travellers can get real-time updates on the @RyanairFlights handle or get flight information texted to their phones. Rounding off the customer journey is the Rate My Flight service, which uses the app to send a notification once someone lands, asking them for feedback. BEAUTY OF GETTING MOBILE FIRST OFF THE GROUND Globally almost 4.8 billion men and women subscribe to a mobile service – almost two- thirds of the world’s population – and this is expected to reach 5.6 billion people in 2020. The mobile industry is also connecting billions of people to the internet; mobile is the dominant platform for internet access in many parts of the world, given the lack of alternative infrastructure. By the end of the decade, just under 60 per cent of the global population will be on the mobile internet, but this also means that 40 per cent of the world still will not have access. We must change this and it’s some- thing our industry is very focused on, to extend network coverage to rural areas, improve affordability of mobile services, deliver locally relevant content, and in- crease digital skills and literacy. But it’s not just about connectivity, though that is a very important first step; it’s about what this connectivity enables. It really is about connecting everyone and everything to a better future. As an industry, we have an opportu- nity to leverage the mobile networks we have built and the services we deliver to help achieve the United Nations sus- tainable development goals (SDGs). With a far-reaching and ambitious agenda, the goals truly define what this “better future” will be. In February 2016, the mobile industry became the first sector to commit to the SDGs. In September, at the UN Gen- eral Assembly week, we published the 2016 Mobile Industry Impact Report: Sustainable Development Goals, which provides an assessment of the mobile industry’s current impact in achiev- ing the SDGs and outlines future actions that will expand and strength- en impact. This first-of-its-kind report offers critical insights into the transforma- tive impact of the mobile industry on individuals, societies and economies around the world, in developed and developing markets. Further, it estab- lishes a benchmark through which we will measure the industry’s progress in contributing to the SDGs by 2030 and serves as a blueprint for other in- dustries as they commit to achieving the goals. The report finds that the mobile industry impacts all 17 goals to varying de- grees, with the greatest effect being felt
on SDG 9 (industry, innovation and infrastructure), SDG 1 (no poverty), SDG 4 (quality education) and SDG 13 (cli- mate action). Mobile opera- tors and players across the eco- system are already delivering a vast range of programmes and initiatives that contribute to achieving the SDGs. SDG 1 (NO POVERTY) Today more than 400 million people have access to financial services via their phone, with mobile money services available in more than 90 countries. The mobile industry is committed to continue to develop new mobile money products, such as international remittances, for de- veloping world consumers who need them most. SDG 5 (GENDER EQUALITY) The mobile industry is focused on increas- ing women’s access to and use of mobile services in low and middle-income coun- tries around the world. Since its launch in February, 18 operators representing more than 90 million customers have joined the Connected Women Commitment Initiative to close the gender gap in mobile internet and mobile money services. SDG 8 (DECENT WORK AND ECONOMIC GROWTH) The mobile industry is a major contrib- utor to the world’s economy. The mobile ecosystem added $3.1 trillion in econom- ic value to the global economy in 2015, equivalent to 4.2 per cent of GDP, a figure predicted to rise to $3.7 trillion by 2020. The industry also directly and indirect- ly supported 32 million jobs in 2015 and contributed $430 billion to public fund- ing in the form of various types of taxa- tion. SDG 11 (SUSTAINABLE CITIES AND COMMUNITIES) The mobile industry is committed to lever- aging technology and expertise to ensure thatcommunication ispossiblein disasters and humanitarian crises, such as recon- necting families displaced by conflict in Syria or supporting the response following the recent devastating earthquake in Italy. Endorsed by the United Nations Office for the Co-ordination of Humanitarian Affairs, the GSMA’s Humanitarian Connectivity Charter now has 103 mobile network oper- ators across 76 countries, committed to en- suring network resilience and supporting subscribers during times of crisis. The GSMA study also identified three primary ways the mobile industry can accelerate progress on SDGs: expand the global mobile network footprint and connect subscribers to voice and data services; enhance the quality of connec- tivity and ease of access, and innovate mobile-enabled services to meet sustain- able development needs; and contribute to sustainable development policy along- side governments and agencies. The 2016 Mobile Industry Impact Report forms a baseline to measure the industry’s pro- gress against the SDGs, and we’ll publish updates on an annual basis. In addition to publishing the report, we have partnered with the United Na- tions and Project Everyone to develop and launch the official SDGs in Action mobile app, creating a community for in- dustry, governments and individual cit- izens to work together in delivering the SDGs. Users can get details on each of the 17 goals, including the associated SDG targets, as well as explanatory videos, case studies and data, and suggestions on how people can take action to help achieve them. The app also enables in- dividuals to highlight the activities they are undertaking in support of the SDGs and to invite their social networks to get involved. Mobile networks are transforming the world as we know it and are a revolution- ary force in overturning the status quo. They are also essential in achieving the SDGs, whether it’s ensuring healthy lives and promoting wellbeing for all, achieving gender equality and empowering women and girls, making cities and settlements inclusive, safe, resilient and sustainable, or helping to combat climate change and its impacts. Working together as an industry, with other sectors, governments and key stakeholders, I do believe we can make a real difference in peo- ple’s lives. The GSMA represents mobile operators worldwide Get on board for the full mobile journey Businesses are increasingly managing the full customer life cycle, from before to after sales, purely through mobile, leveraging data to provide a proactive and personalised service FULL-SERVICE MOBILE GABRIELLA GRIFFITH W hen it comes to disruption, few industries have experi- enced quite as much in re- cent years as banking. Once a traditional, slow-moving stalwart of British society, banking is now witness- ing the arrival of challenger banks that are doing things faster and doing them differently. One such example is Monzo. This app-only banking service gives users access to a pre-paid debit card from their phones, with lots of helpful notifications to make it easy to manage money. Services such as current accounts and overdrafts are on the way, but if you’d like to use Monzo now, you’d better get your name on the waiting list fast as you’ll be joining roughly 250,000 others in the queue. “The waiting list is a mechanism to give the cards out to the keenest early adop- ters while we fine-tune the service, but we didn’t anticipate the demand,” says founder Tom Blomfield. “We think it’s taken off because we’ve created some- thing that people really want. When it comes to controlling your money on a day- to-day basis, the future is on mobile. It gives you an amazing connection with the customer on a minute-by-minute basis.” Of course it’s not just the banking indus- try that’s looking to mobile. There are an increasing number of businesses describ- ing themselves as “mobile first” that are serving customers on mobile at every step of their journey. “Delivering a full-service mobile expe- rience is fundamentally important today when trying to reach, engage and retain modern mobile-first audiences,” says Julian Smith, head of strategy and inno- vation at mobile strategy agency Fetch. “For mobile app-only businesses like Uber, it is business critical. If you are a traditional brand or business, with a high street presence, it will provide a competi- tive advantage, especially when targeting younger adult audiences.” These mobile-first businesses are interact- ing with customers on the platform from the very start. The audience numbers on mobile make it the most sensible place to fish for new customers. According to Refused Car Finance, 85 per cent of its audience views its website on mobile and more than 80 per cent of its conversions are completed using a mobile device. “Advertising on Facebook is one of the key ways for us to reach our target audience, so our recent campaigns have been tailored to mobile users exclusively,” says managing director Craig Rutherford. “Using features within the campaign manager section of Facebook, we were able to analyse our audience and identi- fy which devices they were viewing our advert campaigns and Facebook page on. We changed our adverts to display only to those on a mobile device and created effective landing pages for the campaign that were mobile optimised. We identified our customer touchpoints to ensure we had an overall holistic view to fully track the customer journey at all stages.” There are many businesses that after se- curing a sale deliver their service through mobile touchpoints. Monzo lets custom- ers handle their finances at the push of a button. Companies such as Uber are offering an offline commodity delivered through a mobile service. People order cabs though the app and can then be con- tacted directly by drivers on their mo- biles. By taking the customer through the service on mobile, companies are able to track their activities and therefore get to know their customers better. “Data lies at the heart of managing a full customer life cycle through mobile,” says Mr Smith. “Data and insights need to direct everything companies do from ac- quisition to delivery to retention. For ser- vice delivery, companies need to under- stand the depth of engagement customers have with mobile services and optimise these to reduce friction and provide a more seamless experience.” By understanding a customer’s behav- iour and preferences, a company can deliver personalised experiences that will help with the next step of the jour- ney, retention and aftersales care. If a company understands when someone usually requires its service, it can create relevant and timely offers, giving the customer what they need and keeping them engaged. Share this article online via raconteur.net “The mobile life cycle also depends on delivery and aftersales messaging,” ex- plains Marise Treseder, head of market- ing at Zeta Interactive. “Proving you care beyond the point of purchase will build loyalty and keep customers coming back for more. And while push messaging can feel intrusive if it comes at the wrong moment, a timely contact can reinforce a positive perception of the brand and its emphasis on customer care. Euros- tar’s customer satisfaction survey text messages, for example, arrive as you pull into your destination station and are a great example of time-sensitive messages that reinforce positive per- ceptions which begin to address any service issues.” Of course, with any business strategy there are pitfalls. One of the benefits of managing a customer life cycle through mobile is that you are always with them. Using a mobile is a more personal experi- ence, so when a brand has a customer in that kind of space, it needs to be respect- ful. “It’s a fine line between being help- ful and intrusive, and brands need to be careful in how they are tracking and pro- actively contacting customers on mobile,” says Ms Treseder. One of the ways a brand can mitigate this is by adding another thread of con- versation with the customer that has nothing to do with sales. If a brand can produce helpful content, as well as their core service, it can remain at the forefront of a customer’s mind without becoming an annoyance. Columbia Sportswear is a good example of this. The brand de- veloped an app called What Knot to Do, which gives customers guidance on how to tie various different knots. “Almost entirely devoid of sales mate- rial, the app transcends the transaction, encouraging engagement with their ex- isting audience and tapping into new customers by establishing Columbia as a relevant and helpful brand for sailing customers,” says Ms Treseder. “Creating a ‘mobile value exchange’ where custom- ers feel like they are getting as much as they give on their smartphones will help brands to deepen engagement and drive loyalty beyond the transaction.” Eurostar’s customer satisfaction text mes- sages arrive as trav- ellers pull into their destination station OPT-IN RATES FOR PUSH NOTIFICATIONS FROM MOBILE APPS Source: Accengage 2016 TELECOMS E-COMMERCE FINANCE GAMING TRAVEL REAL ESTATE ENTERTAINMENT RETAIL MEDIA FAST-MOVING CONSUMER GOODS 56% 41% 51% 36% 51% 36% 43% 34% 41% 29% OPINION COLUMN Connect everyone and everything to a better future The mobile industry has an opportunity to improve the lives of billions of people around the world MATS GRANRYD Director general GSMA TungCheung/Shutterstock TREATWELL Sixty per cent of beauty marketplace Treatwell’s business happens on mobile and chief executive Lopo Champalimaud expects this to rise to 90 per cent over the next few years. “We realised a while ago that we needed to become a mobile-first business and we’ve seen a huge transformation since then,” says Mr Champalimaud. Indeed, the company has found that customers who use their mobile are likely to spend more frequently than those who visit on desktop. “We use things like competitions to encourage our desktop users to download the app and start using mobile,” he says. Mobile is Treatwell’s biggest channel for acquisition, particularly Facebook, where they buy mobile-targeted ads. “We have also seen that Google has started to index our app in search results, which is driving more people on to the app,” says Mr Champalimaud. Once a customer has booked a treatment with the company, the booking is added to the user’s calendar and they receive text messages to remind them. Having customers search for a service via their mobile also means they get a more accurate result, getting salons located closest to them. “It allows us to make better recommendations,” he says. Once customers have been to their appointments, Treatwell can prompt them to leave reviews, which it describes are an important part of the ecosystem. 32m jobs directly and indirectly supported by the mobile industry in 2015 $3.1trn contribution to the global economy by the mobile ecosystem in 2015, growing to $3.7trn in 2020
  6. 6. MOBILE BUSINESS raconteur.net6 RACONTEUR30 / 10 / 2016 MOBILE MOMENTS THAT CHANGED THE WORLD In just four decades, the mobile phone has rapidly evolved to become a device we can't be without, in the pockets of an estimated two billion people worldwide. We now live in an age when information, connectivity and entertain- ment are instantaneous, at the touch of a button or swipe of a screen. From the 80s “brick” to the flip-phones of the 90s, to the dawn of the smartphone and the touchscreen mini computers we know today, each stage of the evolu- tion has effected major change in the way we do business, interact socially and live our lives on a daily basis 1973 Motorola made the first publicised mobile phone call on the DynaTAC prototype, weighing in at 1.15kg. It was 10 inches long (excluding the 4-inch antenna) and had a battery life of just 20 minutes First-generation (1G) analogue cellular networks were launched by Nippon Telegraph and Telephone. Calls were low quality and insecure, so people were able to hack signals and eavesdrop on conversations 1979 1984 1991 1992 Motorola's DynaTAC launched as the first commercially available mobile phone, retailing for $4,000. Talk time improved to 30 minutes, though a full charge took 10 hours. It included enough storage to save 30 phone numbers, weighed 800g and was nicknamed "the brick" 2G cellular telecom digital networks were launched commercially in Finland by Radiolinja, enabling higher-quality, more secure calls 1994 The first SMS message was sent via the Vodafone network IBM's Simon Personal Communicator, priced at $1,099, was one of the first attempts at a touchscreen phone with no physical buttons. It was the first to include both telephone and PDA (personal digital assistant) features in one device Ericsson invented Bluetooth, the wireless technology for exchanging data over short distances 1996 1997 Motorola's StarTAC, the first flip phone, was much smaller and lighter than other devices on the market at the time. Priced at $1,000, it was the first to include a vibrate alert function Nokia’s 9000 Communicator, complete with QWERTY keyboard, is widely regarded as the first commercially available smartphone. It had 8MB of memory, a monochrome display and weighed 397g Sources: GSMA Intelligence/company accounts and press releases/online sources Nokia's 6110 gained cult status for its pre- installed Snake game. Along with an infra-red port for data transfer between compatible phones, the 6110 doubled up as a handy pager 1998 3G telecom networks were launched commercially. Meanwhile, the number of mobile phones sold worldwide surpassed sales of cars and PCs combined Siemens' S10 was the first colour-screen mobile, capable of reproducing just four colours – red, green blue and white 2010 2011 1999 Wireless Application Protocol, or WAP, became the technical standard for accessing information over a mobile wireless network – essentially a stripped-back version of HTTP Nokia released the 3210, the first mass-market device with an internal antenna. Official standby time was 260 hours – that’s a charge every 10.83 days 2000 The J-SH04, produced by Sharp and released in Japan by J-Phone, was regarded as one of the first camera phones, with an integrated 0.11-megapixel camera Research In Motion launched its maiden phone, the BlackBerry 5810. It was the first BlackBerry to combine the PDA features of RIM’s older models with a phone. It lacked a speaker and required earphones to make a call, but still cost $500 2002 MARCH Nokia's 7650 slider phone was its first with an in-built camera (0.3 megapixels). The handset’s release was promoted in conjunction with the futuristic Tom Cruise sci-fi film Minority Report JUNE 2003 Nokia's 1100 went on to become the world’s best-selling handset by 2007. While colour-screen camera phones were rising in popularity, the black-and-white 1100 targeted developing countries that did not require advanced features and sold 250 million units in just four years 2005 A mobile startup named Android was quietly acquired by Google for $50 million, revealing the internet giant’s ambition in the mobile space Apple boss Steve Jobs introduced the iPhone, featuring an inbuilt iPod and multitouch interface without the need for a physical keyboard or stylus. He described it as being “five years ahead” of its time 2007 2008 iPhone sales surpassed one million just 74 days after its commercial launch in June Google opened up its Android operating system for free development with the Open Handset Alliance, a consortium of firms including HTC, Samsung and LG working to advance open standards for mobile devices. Google’s own services for search, video and e-mail were made default on all Android devices NOVEMBER JANUARY SEPTEMBER JUNEApple introduced the iPhone 3G Apple launched the App Store with 500 native applications to download. Later that month, App Store downloads topped ten million JULY Apple’s App Store downloads topped 100 million SEPTEMBER OCTOBER The first commercially available smartphone running on the Android operating system, the HTC Dream, was released. Meanwhile, the Android Market app store (now known as Google Play) was launched WhatsApp launched its now- eponymous instant messenger app, enabling users to send messages, files, multimedia, audio and location data over cellular data Apple unveiled FaceTime in conjunction with the launch of the iPhone 4, enabling one-on-one video-calling with compatible devices Global mobile penetration reached 19 per cent in the developed world and 5 per cent in developing nations 2009 APRIL NOVEMBER Apple’s App Store downloads topped one billion, rising to two billion by September Samsung released its first Galaxy phone, running on the Android OS. It had 8GB of storage and a 5-megapixel camera autofocus camera, costing more than $700 4G telecom networks were launched JANUARY Microsoft's Windows Mobile renamed Windows Phone and revamped due to competition from rivals iOS and Android FEBRUARY Google’s Android OS finally began to take off with the launch of Samsung’s Galaxy S smartphone MARCH JUNE Google bought Motorola Mobility for $12.5 billion to gain control of its portfolio of patents Apple unveiled Siri as a feature of the iPhone 4S, a voice-activated personal assistant that answers questions, makes recommendations and performs tasks AUGUST OCTOBER 2013 The number of Android apps on Google Play topped one million, surpassing Apple’s App Store. Downloads on Google Play reached 50 billion 2014 Facebook bought WhatsApp for $19.3 billion Apple announced the Apple Pay mobile payment and digital wallet service as a feature of the iPhone 6, enabling users to pay using the phone's contactless technology Google sold most of Motorola Mobility to Lenovo for $2.91 billion, but retained 2,000 of its patents AUGUST OCTOBER 2015 The global 4G connection base passed the one billion mark Worldwide mobile advertising spending reached almost $70 billion, accounting for more than a tenth of all advertising 2017 Apple launches the iPhone 8 2020 5G telecom networks are launched Global mobile penetration reaches 76 per cent in the developed world and 63 per cent in developing nations The number of mobiles around the world tops 5.8 billion The mobile industry contributes $3.75 trillion to annual global GDP. The mobile ecosystem directly employs 20 million people worldwide, plus an additional 16 million indirectly 2019 Global payments from mobile phones surpass $1 trillion, up from an estimated $620 billion in 2016 2016 Google launched its video-chatting app called Duo, expected to compete with Apple’s FaceTime and Microsoft’s Skype. It includes the so-called “knock knock” feature, allowing users a glimpse of who’s making the call before they answer WhatsApp’s user-base topped one billion, making it the world’s most popular messaging app Global mobile penetration reached 69 per cent in the developed world and 46 per cent in developing nations FEBRUARY AUGUST iPhone 7 Samsung Galaxy iPhone Nokia 8210 BlackBerry 5810 Nokia 6110 IBM Simon Personal Communicator Motorola DynaTAC Motorola StarTAC
  7. 7. 30 / 10 / 2016RACONTEUR raconteur.net 7MOBILE BUSINESS COMMERCIAL FEATURE DON’T BE A TARGET In Q2 2015, Kaspersky Mobile Security detected 291,887 new malicious mobile programs. Protect your smartphones and tablets with advanced security, management tools and controls enabled by Kaspersky Mobile Security. Read our Guide to Mobile Security Best Practices: www.kaspersky.co.uk/enterprise-security/mobile © 2016 Kaspersky Lab. All rights reserved. Registered trademarks and service marks are the property of their respective owners. Making mobile payments safe and still easy As mobile payments gain in popularity, fraud is also on the rise, requiring speedy tech solutions to thwart the fraudsters FRAUD SIMON BROOKE M obile payments are booming. According to research pub- lished earlier this month by Visa, the number of consum- ers regularly using a mobile device such as a smartphone, tablet or wearable to make payments has tripled since 2015, rising from 18 per cent to 54 per cent. Unfortunately, but not surprisingly, mobile payments fraud is also growing rapidly. In the United States although mobile pay- ments account for 14 per cent of transactions among merchants who accept them, they make up 21 per cent of fraud cases, according to a survey of around 1,100 companies pub- lished in January by risk management con- sultancy LexisNexis Risk Solutions. “With mobility changing everything we do as humans, especially the way we bank and pay, cyber crime has fully migrated to the mobile platform, with all the threats we know from the PC in tow,” says Limor Kessem, executive security adviser at IBM Security Systems. “Despite storing large amounts of personal information on their devices, most people don’t implement even the most basic security countermeasures on their smartphones.” AccordingtoSalvatoreSinno,chiefsecurity architect at Unisys, mobile devices are more susceptible to loss or theft than desktops and tablets. “At the same time users have the ten- dency to use these devices in a more personal and confidential way,” he says. “On the technical side, the security con- trols and the tools available are still evolving and are limited by processing power and bat- tery life. Moreover, by their intrinsic nature, mobile payment systems rely on wireless carrier infrastructure, which are open and designed to ‘share’ and interoperate connec- tion, not designed with security in mind.” As with other areas of financial technol- ogy banks and technology companies are working hard to stay ahead of the fraudsters. Passwords are unpopular with consumers and are not even particularly secure. The challenge now is to improve security while ensuring that performing transactions is quick and easy. Transactions incorrectly declined by banks annoy consumers and lose money for merchants, points out Ajay Bhalla, president of enterprise risk and security at MasterCard, which earlier this month an- nounced the European rollout of Identity Check Mobile, a new payment technology application that uses biometrics such as fingerprints or facial recognition to verify a cardholder’s identity. “We take a multi-layered approach that in- volves biometrics in conjunction with other technology,” he says. “We want the custom- er experience be very smooth and conven- ient every time they use their device.” Fraud isn’t at point of sale, it’s at the ac- count-opening stage, according to Mitek, a company that provides visual and biom- etric identification for the onboarding of accounts to more than 5,200 financial insti- tutions. “If you’re confident in the identity of the person who owns the account then duced an increase in usage of the app of more than 10 per cent, with millions of ad- ditional logins. Already developers are ensuring that data on mobile is deeply hidden, often tokenised, in other words encrypted, and safer from theft in a way that cash or a payment card in a customer’s hand or a PIN code typed into a payment terminal can never be, explains Dennis Jones, chief executive at mobile payments provider Judopay. “It’s just that much harder to steal your phone and your thumb print,” he says. “Yet additional layers of mobile-specific security, which track unique devices and react to unu- sual activity, need to be scaled across mobile commerce to avoid fraudsters trying to trick the system by changing SIM cards or using different accounts on the same device.” VocaLink, a UK-based payments systems company, has launched a Pay by Bank app. AlreadyinusebyBarclaysPingitcustomers,it allows people to make instant payments from within their existing trusted mobile banking app, directly from their account, without the information ever leaving their bank. “This adds the layer of security needed for consumers as you authorise every pay- ment individually, without the hassle of inputting the data required, via a payment technology that prevents certain types of online payment fraud from ever happen- ing,” says Liam Spence, head of product at Pay by Bank. Veridu, which was founded in 2014 and now has backing from Worldpay, asks con- sumers to sign into their social media to verify their identity when a transaction has been flagged up. According to recent research from finan- cial technology firm Intelligent Environ- ments, 25 per cent of consumers would like their bank to introduce biometric security, to avoid the need for them to remember a number of passwords. In addition, only 23 per cent trust traditional passwords or pass- codes over biometric authentication. “However, the tradi- tional banks have been slow to incorporate biometric technology within their mobile banking and payment facilities, largely due to difficulties updating ageing infrastructure,” says Intelligent En- vironment’s chief technology officer Clay- ton Locke. Instead of passwords, challenger bank Atom is employing face and voice recogni- tion technology, the kind of biometric soft- ware used at airports and border controls. Once a customer’s identity credentials are registered, including their face, voice and passcode, they can choose how they want to login to the Atom app. They can then pres- ent their face to view their balance or say a few words to transfer money. Biometrics combined with geolocation and data analytics can start making a difference Share this article online via raconteur.net in reducing fraud significantly, believes Jitin Goyal of financial technology product pro- vider Polaris Consulting. “But we’re just now seeing the evolution of these technologies and they will take anywhere between two to five years to mature,” he says. Research published by Deloitte in Septem- ber shows that 21 per cent of all smartphone users in the UK are now using their finger- prints for a range of authentication-based applications, including approving trans- actions. Some 76 per cent of those with a fingerprint scanner use it and it’s by far the most popular biome- tric identifier used by smartphone owners. Hannah Maun- drell, editor in chief of money.co.uk, says: “Security is still the biggest worry and it does put people off de- spite phone companies giving us assurances it’s safe. It’s a new tech- nology though and the more widely accepted it becomes, the more people will say goodbye to cards in favour of a wave of their handset.” Mr Sinno at Unisys believes the industry should consider a simple customer educa- tion programme on security that addresses issues such as the structure of strong pass- words and ensuring customers’ devices lock after a certain period. “The importance of updating their operating system and appli- cations must be stressed, as well as other issues such as the dangers of a ‘jail-broken’ device, and the implementation of encryp- tion and anti-virus software whenever pos- sible,” he says. Ms Maundrell advises consumers to keep a keen eye on their statements so that if they can spot any transactions they don’t recog- nise, they can take action quickly – sound advice however sophisticated anti-fraud mobile payments technology becomes. 53% FINGERPRINT SCANNING 29% COMBINATION OF PIN AND BIOMETRICS 23% RETINAL SCANNING 15% FACIAL RECOGNITION 12% VOICE RECOGNITION 10% BEHAVIOURAL BIOMETRICS Biometrics combined with geolocation and data analytics can start making a difference in reducing fraud significantly 01 MasterCard’s Identity Check biometric technology includes the so-called “selfie pay” feature 02 According to Visa, three quarters of consumers believe that two-factor authentication – biometrics used in conjunction with a password – is secure for mobile payments 02 01 you should be relatively safe from fraud,” says Sarah Clark, Mitek’s general manager of payments. “The problem is that current- ly far too many people are simply unable to make their way through the verification processes on their mobile device.” Among other security innovations, Ge- malto, a digital security company, has de- veloped what it calls Dynamic Code Veri- fication. This allows issuers to replace the static three-digit visual cryptogram tradi- tionally used for online purchases with a verification code displayed on the custom- er’s mobile that changes every 20 minutes, thereby limiting the time for fraud to occur. Nationwide Building Society introduced fingerprint logins to its new banking app this summer and, in the first month, pro- 21%of all UK smartphone users are now using fingerprint authentication for a variety of applications, including approving transactions Source: Deloitte 2016 Bloomberg/GettyImages BIOMETRIC AUTHENTICATION OF PAYMENTS Percentage of consumers who would prefer biometric authentication Source: Visa 2016 COMMERCIAL FEATURE COMBATTING THE MOBILE HACKERS Your mobile number is all a hacker needs to intercept your calls and texts, block your signal and track your movements I n five years' there will be nine billion mo- bile subscriptions – that’s more than there are people on the planet. “Mobileisgoingfromstrengthtostrength. It’s crucial for our private and business lives. But with greater reliance on devices, comes a greater risk especially when it comes to pri- vacy and fraud,” warns Steve Buck, product director at Evolved Intelligence. Phone hacking isn’t new; stories of high-profile figures being plundered are le- gion, from Kate Middleton to Milly Dowler. These examples seem disconnected from our everyday use, but fresh revelations of hacking potentially affect us all. They come in the wake of a US me- dia storm, sparked by CBS news show 60 Minutes, where a congressman’s calls and movements were monitored. All hackers did was get hold of one piece of data – his phone number. They then accessed a network few of us have heard of, yet all of us have used. Once in, the hacker can track your movements, in- tercept calls and texts, as well as block your signal from anywhere in the world. Mobile operators use a network called Signalling System 7 (SS7), which allows all operators to talk to each other. “It’s the cen- tral-nervous system of the worldwide mobile network. It connects our devices with all networks and allows us to move around while using them. It’s essentially what makes them mobile. More people use SS7 than the inter- net,” says Mr Buck. Criminals are increasingly using the SS7 network to access our mobiles. “Attacks can affect any phone, on any carrier and any oper- ating system, and it’s possible because of se- curity flaws in the global network,” says Nick Jones, chief technology officer at Evolved Intelligence, that provides roaming, fraud and security solutions. Developed in 1975, SS7 is considered an- cient in tech circles. Security officials have flagged vulnerabilities for decades. The GSMA, whose members include 800 oper- ators globally, are actively working to advise operators how to plug this hole. The US Fed- eral Communications Commission and other regulators are also investigating. For example, every day a medium-sized operator serving five million customers will have thousands of attacks, including doz- ens of sophisticated ones. Even intelligence agencies, accused of espionage, are believed to be in on the act. “Nowadays it costs as little as £800 a month to access the SS7 network – a small price for hackers who use it to eavesdrop on calls, track movements, spam you, deny you service or use it to intercept passwords to access your bank account. The holes are there to be exploited and we need more protection,” says Mr Jones. Yet it’s impossible to know if we’re be- ing hacked. If you have access to SS7, you have access to anyone’s mobile. There is no global policing and it’s up to each operator to resolve these issues. Some operators have begun installing protection. Attacks can be combatted with a signalling firewall or to a degree with modifications to exist- ing equipment. Evolved Intelligence is working with mo- bile operators to tackle the issue. “The prob- lem is widespread so that’s why we’re speak- ing to operators across the world about how to solve this SS7 flaw,” says Mr Jones. Every day the Bristol-based company pro- cesses two billion messages. “We separate malicious messages from the legitimate, so we can secure the network while allowing genuine services through,” explains Mr Buck. “We have worked with many banks to secure their communications. Once we secure the network, we can then enable a lot more legitimate and useful applications, including more secure banking or applica- tions for the internet of things, such as ve- hicle tracking,” he says. “The mobile revolution continues una- bated. We must do more to secure the mo- bile network, while enabling lawful appli- cations and communications. Mobile is like the early days of the internet, when users first realised they needed to protect their PCs from malicious attacks.” For more information please visit www.evolved-intelligence.com Mobile is like the early days of the internet, when users first realised they needed to protect their PCs from malicious attacks 2bn £50 messages processed by Evolved Intelligence every day is all a criminal charges to hack a mobile phone 35mroamers managed by Evolved Intelligence every day EugenioMarongiu/Shutterstock

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