It is worth remembering that when business models get disrupted, the disciplines embedded in those business models also get disrupted. OTT providers of content are disrupting older business models. By doing so, they also create a new dynamic for managing fraud and assuring revenues – one that fits and supports the way that OTT providers make money and the particular kinds of frauds they suffer. And this opens up possibilities for vendors to service their specialist needs. Who will fill the gap? One such firm is Farncombe, a British professional services company that focuses on digital media, and TV in particular. They have just launched a monitoring service that protects OTT content providers by detecting piracy and fraud; see their press release here. With many traditional electronic comms providers needing to revamp their business model to compete with OTT, and opting for revenue models where content charges generate a larger slice of revenues compared to access and usage charges, there will be increasing demand for revenue protection services like Farncombe’s. Will firms like Farncombe get an ever-greater foothold into these telcos, or will the vendors of traditional telco RA and FMS extend their offerings to match the new threats to their customers? When it comes to fraud and criminality, everybody needs to run to keep pace with change, and that is true of traditional telcos, disruptive players, and suppliers.
About the Author
Eric is a recognized expert on communications risk and assurance. He was Director of Risk Management for Qatar Telecom and has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and others. Eric was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He was a founding member of Qatar's National Committee for Internet Safety and the first leader of the TM Forum's Enterprise Risk Management team. Eric currently sits on the committee of the Risk & Assurance Group, and is an editorial advisor to Black Swan. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy. Commsrisk is edited by Eric. Look here for more about Eric's history as editor.