5G Operator Evolution: Additional thoughts and considerations around risks facing Satellite providers

The baseline operational model for satellite providers has, in most countries, been based on “closed” network paradigms where risks associated with revenue loss and fraud have been more focused on the BSS domain. While network risks still exist for these providers, the nature of delivery and ongoing fulfilment within the OSS domain has been historically smaller, when compared to other non-satellite communications service providers. The introduction of 5G networks, however, levels the playing field for those other providers to actively compete for high-quality video content products, where (until now) the satellite providers have enjoyed limited competition, mostly from Cable providers. For classic satellite providers to adequately compete, they too will need to begin leveraging an expanded service model, via 5G network delivery.

 How will the profile of a satellite provider change? Today’s satellite subscriber most commonly has equipment onsite comprised of an antenna, a receiver, a router (for additional televisions and computers, for instance), and connection to the home or business broadband (or a landline, in older delivery models). In some cases, especially in rural delivery models, direct satellite-based broadband is also available. This configuration means that received content is secured from the NOC to the satellite to the receiver, and the downloads for pay events (e.g., PPV movies or sporting events) are requested through a firewall-protected internal network. The risks, therefore, are more often associated with access to broadband services (fraud risks), and to BSS event and billing continuity.

 The advent of 5G services will introduce a far more complex operational and business environment, where risks will increase substantially when compared with previous operational risks. While most organizations have focused on new charge models, new products, and new services, a more in-depth view is certainly warranted, to better prepare for (and counter) the risks ahead. Offering new IOT-based products such as Smart Home tech, Fleet Management, External Sensors (environmental, traffic, etc.), will also be complimented with potentially thousands of new digital developers, who will require API-based self-onboarding to get their products exposed to your customer base. All of these will require revenue and cost model designs that are far beyond what may have been “customary” models used in the past. This opens the door for margin risk and revenue losses if performance models and consumption monitoring aren’t properly deployed and adequately monitored.

 Security and Fraud are of paramount concern in a 5G world, far more than in previous mobility and fixed line operations. The sheer number of network devices required for proper “densification” and the expected 100x increase in connected devices (IOT) have made exploitable vulnerabilities far more numerous than ever before. Device attacks in IOT can cost customers, and the CSPs, millions of dollars in hours or days. Account hacking and take-overs (and overall subscription fraud) is now far more of a threat, especially as the diversity and quantity of devices, accounts, and services grows exponentially from current levels. Partner relations are now also more complex, and revenue share frauds (e.g., IRSF, bypass) are issues which plague virtually every telecom-based CSP today globally. Today, security is now at the top of almost every network administrator’s concerns when surveyed globally.

Considering the volumes of data, dramatic increases in devices, and explosive growth in revenue partners, products, and models that CSPs are facing, a unified program of Assurance, Security, and Fraud controls are now frequent conversations for those operators leading the charge into 5G. Careful consideration should be taken when deploying any new service in 5G, to ensure delivery and billing models are tested, controls are deployed and working properly, and analytics are deployed in appropriate places to predict vulnerabilities and to quickly identify risks.   The same care should be taken when creating a vetting procedure for the new array of partners that will greatly increase the CSP’s revenue potential, but may also increase the risk.