FMRA within a Pan-European MVNO 10 th WeDo Technologies Worldwide User Group Lisbon Portugal May 2015
Content Liberty Global Fact Sheet What s a MVNO? What about FMRA in a MVNO? Who is taking care of FMRA? How we are doing it? What tools do we use? Opportunities and Challenges Key Points 2
Liberty Global Fact Sheet
Liberty Global is the largest international cable company and is a provider of market-leading TV, broadband internet and telephony services 14 countries 38,000 Employees** 52 mm homes passed*** over $20 bn of revenue* 27 mm Customers*** 56 mm RGUs*** founded 25 yrs ago 90% business is in Europe Listed on NASDAQ Global Select Markets, Dow Jones Sustainability World and North America Indices, FTSE4GOOD Index and Forbes Global 2000 *Revenue is presented as combined annualized results of Liberty Global plc and Ziggo N.V. for the nine months ended September 30, 2014. ** Combined results of Liberty Global plc and Ziggo N.V. as of December 31, 2014 ***Combined results of Liberty Global plc and Ziggo N.V. as of September 30, 2014. 4
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Our Innovation Drives Growth Over the past 25 years, innovation has been one of our key growth drivers. Among the first to provide TV, telephony, and broadband services in a single bundle 7
Our Business Focus Our Cable Platform provides scale and stability Our Key Growth Drivers provide leverage opportunities The Best Digital TV Mobile M&A Synergies Speed Leadership B2B 8
Mobile Vision and Why Mobile Vision Liberty Global s vision is to provide customers with device independent and network agnostic connected entertainment Why Mobile To capture untapped markets and benefit from the rapid increase in Smartphone adoption Protect core business against integrated players and to reduce churn Wireless will deliver rapid and sustainable growth and significant added value to the business Offer simple wireless propositions that are aligned with current fixed offers at launch and in the long term offer convergent solutions 9
What s a MVNO?
MVNO Context (1) What is a MVNO? A MVNO (Mobile virtual network operator) sells mobile services under its own brand, network code and SIM cards using a licensed radio network operator (MVNE) How is this achieved? The different business models in the MVNO market are based on how the value chain is restructured. Therefore, four main business models that emerge are: Branded Reseller, Light- MVNO, Full-MVNO and Network enablers 11
MVNO Context (2) LGI MVNO Full MVNO in house : Network elements HLR IN MSC SMSC GGSN BSS Marketing proposition: commercial hybrid package Resource Management 12
What about FMRA in MVNO?
FMRA Approach 360 Approach Corporate operating model Processes agreed and implemented Skilled people Authority Accountability FMRA Competence virtual team Corporate/affiliates stakeholders (SAO, DMG etc) 3rd parties Tools RAID FMS RAID RA Mitigation solution 14
FMRA Strategy for MVNO PE Trigger LGI MVNO Pan-European Program and technical solution NL Plan FMRA MVNO Pan-European Strategy CH HU Define FMRA MVNO Pan European Risk Matrix & Control Framework FMRA MVNO Operational Model AT IE Execute FMRA MVNO Pan European tooling implementation FMRA Competence Center FMRA Supporting Processes WeDo RAID FMS WeDo RAID RA Mitigation reports (inhouse) 15
FMRA Control Frameworks FRAUD TYPES 54 FM KRAs Controls Revenue Assurance Leakage Points 93 RA KRAs Controls Subscription Fraud Dealer fraud High usage, PRS, Roaming Fraud, High cost international destinations and Hotlists SIM boxing / Bypass fraud SIM cloning Internal fraud Technical and hardware fraud Partner fraud FMS Wedo Solution: 54 controls Manual reports: 52 controls Product Configuration : hybrid prepaid solution operator credit limit IPRS numbers blocking Product assurance Activation assurance Provisioning assurance Billing assurance Rating assurance Traffic assurance Wholesale/Interconnec t billing assurance Resource management RA Wedo Solution: 25 controls (only UC in scope traffic assurance): Phase 1 16 PE controls operations by LGI Phase 2 9 CS controls operations by affiliates Manual reports: 75 controls 16
Accountable RA KRAs Fraud KRAs End-to-End Processes Fraud Management & Revenue Assurance Controls Pre-sales Selling & Lead Capturing Product Management Product service is commercially available Sales to activation Order to Install Client is able to use service Billing & collection Billing & Collection Client is nearing end of contract After sales, service delivery & support Fraud & Abuse Network Services Customer Lifecycle Management Subscription Fraud Usage Fraud Technical Fraud Partner Fraud Internal Fraud Product, Order & Provisioning Network & Usage Rating, Billing & Collection Customer Partner End-to-end process owners are accountable for implementation & execution of the process, including the fraud prevention & revenue assurance controls Network Services is accountable for Technical Fraud, making sure fraud prevention controls are correctly implemented & executed National Security is accountable for Internal Fraud, implementing & executing fraud prevention controls Director Billing & Collection is accountable for Subscription, Usage & Partner Fraud, implementing & monitoring fraud detection controls, Revenue Assurance, and implementing revenue leakage detection controls * Note: Network services is not and end-to-end process, but will be accountable for Technical Fraud 17
Who is taking care of FMRA?
FMRA Competence Center Mission and Goals Mission Statement FMRA CC is a tactical team, acting to support Liberty Global and affiliates for protecting their revenues by providing a framework for gathering and sharing intelligence on emerging vulnerabilities and threats, and by delivering and supporting tools which control the revenues against revenue leakage resulted from fraud attacks and operational inefficiencies Objectives To define and implement enterprise-wide and external policies to facilitate detection, management and prevention of revenue loss & fraud attacks To enable tooling for the detection & prevention of revenue leakage & fraud and identifying threat reduction improvements 19
FMRA Footprint Q2 2014 H2 2015 Q1 2015 Q3 2014 Q4 2014 20
How we are doing it?
FMRA Competence Center The challenge: to create an operating model that optimizes collaboration between Corporate and its Affiliates Scan market for risks Business Intelligence Update tooling Data Collection Management Reporting KRA, Control & KPI and Policies Management Tool planning Define tooling requirements Report on KPIs Define how to mitigate financial risks Monitoring & Trouble Analysis Trouble Action Act on identified issues Trouble Management Monitor & analyze usage Identify improvements 22
FMRA Competence Center 23
What tools do we use?
FMRA Dashboard (manual / tool) based on Key Risk Areas and mitigating controls Background: FM and RA playing field overview Key Risk Areas Controls (Key Performance Indicators) Areas of Financial and Operational risks for mobile products needing mitigation, key risk areas exclude accepted risks Mitigating FM/RA controls (KPIs) to mitigate risks in Key Risk Areas RA / FM Dashboard (manual or tool based) Data Inputs, Reports IT systems & Network Elements Tool or manual reports used to execute controls Data and reports used as input for the RA & FM Dashboard IT Systems or Network Elements generating relevant data for FM/RA 25
Challenges and Opportunities
Challenges and Opportunities What are our challenges? What are our opportunities? Data collection and management Projects keeping in timelines with new projects and being part of a complex program 3rd parties Regulators Ownership Distance Virtual team with affiliates members but in the same time a unified entity as a corporate stakeholders PE data collection and management PE knowledge and sharing PE project 27
Key Points
Key Points Ensure a strong organizational structure: skilled team members, proper authority & accountability Communication & Intelligence make sure you know what new risks appear and how to respond to them Keep always a door open to your peers Define processes but be prepared to adjust them, as even the group is the same, the map is not the territory and specific adjustments will be required Keep your tool requirements in sync always review the requirements before implementation, when you have fast development cycles 29
Questions Thank you?!