FMRA within a Pan-European MVNO

FMRA within a Pan-European MVNO

10th WeDo Technologies Worldwide User Group

Lisbon Portugal

May 2015

2

Content

LGI FMRA Competence Center | May 2015 | WeDo User Group

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

Liberty Global Fact Sheet

4 LGI FMRA Competence Center | May 2015 | WeDo User Group

Liberty Global is the largest international cable company and is a provider of market-leading TV, broadband internet and telephony services

Listed on NASDAQ Global

Select Markets,

Dow Jones Sustainability

World and North America

Indices, FTSE4GOOD Index

and Forbes Global 2000

14 countries

52 mm homes passed***

27 mm

Customers***

56 mm RGUs***

over

$20 bn

of revenue*

38,000 Employees**

*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.

founded

25 yrs

ago

90% business is in Europe

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7

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

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Our Business Focus


Our Cable Platform provides scale and stability

Our Key Growth Drivers provide leverage opportunities

The Best Digital TV

Speed Leadership

Mobile

B2B

M&A | Synergies

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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

Vision and Why Mobile

What’s a MVNO?

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• 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

MVNO Context (1)


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MVNO Context (2)

LGI MVNO

Full MVNO – in house :

• Network elements

• HLR

• IN

• MSC

• SMSC

• GGSN

• BSS

• Marketing proposition:

• commercial hybrid

package

• Resource Management


What about FMRA in MVNO?


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FMRA Approach 360° Approach

Processes agreed

and implemented

• Skilled people

• Authority

• Accountability

Tools

• RAID FMS

• RAID RA

• Mitigation solution

• FMRA Competence

virtual team

• Corporate/affiliates

stakeholders (SAO,

DMG etc)

• 3rd parties

Corporate operating

model


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FMRA Strategy for MVNO

Execute

Define

Plan

Trigger LGI MVNO Pan-European Program and technical solution

FMRA MVNO Pan-European Strategy

FMRA MVNO Pan European Risk Matrix & Control Framework

FMRA MVNO Pan European tooling implementation

WeDo RAID FMS WeDo RAID RA Mitigation

reports (in-house)

FMRA MVNO Operational Model

FMRA Competence

Center

FMRA Supporting Processes

NL

CH

HU

AT

IE

PE

NL

CH

HU

AT

IE


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FMRA Control Frameworks

Controls

•FMS Wedo Solution: 54 controls

•Manual reports: 52 controls

•Product Configuration :

•hybrid prepaid solution

•operator credit limit

•IPRS numbers blocking

54

FM KRAs

FRAUD TYPES

•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

Controls

•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

93

RA

KRAs

Revenue Assurance Leakage Points

•Product assurance

•Activation assurance

•Provisioning assurance

•Billing assurance

•Rating assurance

•Traffic assurance

•Wholesale/Interconnect billing assurance

•Resource management

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Fraud Management & Revenue Assurance Controls

Product, Order & Provisioning

Network & Usage Rating, Billing & Collection

Partner Customer RA

K

RA

s

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

Acc

ou

nta

ble

Pre-sales Selling & Lead Capturing Product Management

Sales to activation Order to Install

Billing & collection Billing & Collection

After sales, service delivery & support Fraud & Abuse Network Services Customer Lifecycle Management

Product service is commercially available

Client is able to use service

Client is nearing end of contract

End

-to

-En

d P

roce

sse

s


Subscription Fraud Usage Fraud Technical Fraud Internal Fraud Partner Fraud

Frau

d

KR

As

* Note: Network services is not and end-to-end process, but will be accountable for Technical Fraud

Who is taking care of FMRA?


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

FMRA Competence Center Mission and Goals

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FMRA Footprint


Q2 2014

Q3 2014 Q4 2014

Q1 2015 H2 2015

How we are doing it?


FMRA Competence Center The challenge: to create an operating model that optimizes collaboration between

Corporate and its Affiliates

Tool planning

Monitoring & Trouble Analysis

Business Intelligence

Data Collection Management

Trouble Action

KRA, Control & KPI and Policies

Management

Scan market for risks

Reporting

Trouble Management

Monitor & analyze usage

Define how to mitigate

financial risks

Define tooling

requirements

Update tooling

Act on identified

issues

Identify improvements

Report on KPIs

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FMRA Competence Center


What tools do we use?

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FMRA Dashboard (manual / tool) based on Key Risk

Areas and mitigating controls Background: FM and RA playing field overview

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

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

RA / FM Dashboard (manual or tool based)

Data Inputs, Reports

IT systems & Network Elements

Controls (Key Performance

Indicators)

Key Risk Areas


Challenges and Opportunities

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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

Key Points

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• 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

Key Points


Questions ? Thank you !

FMRA within a Pan-European MVNO

Documents

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