How Illegal GSM Gateway Exchanges Affect Operators?

During the operation, maintenance and optimization of a cellular mobile network, variation and fluctuation in mobile traffic is often encountered. Traffic is an indicator about how much the network is being used by subscribers. When a voice call is connected and answered over radio and non-radio links, billing starts.

Traffic is measured in a unit called Erlang — named after Danish mathematician Agner Krarup Erlang. Increased traffic is always a welcoming development; hinting that more users are using the network, thus more revenue is generated. Often when an event like a political rally, anniversary of some Sufi or simply a large gathering takes place, mobile traffic at the site surges. Mobile operators take into account such incidents and take necessary measures to provide seamless access to the network for subscribers.

There are times when surge in mobile traffic corresponds to no known event in the area. More so, when detailed investigations take place, it is revealed that the revenue against that site has not increased. This means that the mobile subscribers are using mobile operator’s radio network but somehow successfully bypassing the core network — the part where billing and routing takes place.

This is done by setting up routers, switches and exchanges which are able to route voice calls when GSM SIM cards are inserted.

A typical way would be to route mobile calls via the SIM card, effectively turning the call from landline to mobile, from mobile to mobile, cutting the cost by over half.

GSM Gateways come in various different shapes, sizes and languages, by languages I mean protocols, e.g. ISDN30e/PRI, ISDN2/BRI, Analogue and VoIP Including H.323 and SIP, depending on what is needed for the company.

For example, for a typical 2 person company, the most cost effective would be the analogue device and connect this to the original analogue line (just like your home phone).

This is, of course, illegal. PTA has been fairly active in this regard to track and shut down such mobs. NR3C extends logistics during such raid on illegal GSM gateways. In fact, NR3C and PTA collectively raided and confiscated the equipment of 9 illegal GSM gateways. However – considering the amount of illegal traffic Pakistan is carrying — this was just the tip of the iceberg.

The world cellular community came together and formed a GSMA Fraud Forum to deal with this. According to a recent CFCA report, US$40.1 Billion is lost annually to fraud and operators who fail to take action both promptly and decisively will see their revenues deteriorate rapidly, it will also negatively affect the customer.

But why operators fail to take action? GSMA Fraud Forum highlights the following reason as the main cause for these illegal mobs to exist:

“Perhaps the most decisive factor is lack of awareness by many mobile operators of the significance of bypass fraud and the vulnerabilities associated with it.

Companies are simply not willing to believe that they have an issue on their network. This assumption is a consequential oversight, revealing the need for a better understanding and appreciation of the mobile fraud situation.”

Illegal termination is usually found where there is a variance between local and international call rates. However, in a number of countries the difference between the local and international calling rates is not significant enough for fraudsters to benefit. An example of this would be Singapore and the United States.

Senate Defence Committee announces Task Force for Cyber Security Policy

Senate’s Defence Committee has taken the initiative for the formulation of Cyber Security Policy to preserve, promote and protect Pakistan’s national security digitally.

Senator Mushahid Hussain Sayed, Chairman of Senate Defence Committee  — who was attending the Cyber Secure Pakistan Conference as Chief Guest – announced this today.

Senator Mushahid Hussain, while defining the role of the Task Force on Cyber Security Policy, said the task force working jointly with Pakistan Information Security Association (PISA) under Senate Defence Committee will be asked to define the nature of the new emerging threats to Pakistan’s national security & defence in the digital battlefield and to prepare Cyber Security Policy, in consultation and with cooperation of experts and professionals from PISA and government organisations as well.

He said legislation and legal framework for Cyber Security and guarding against Cyber Warfare will be another most important task as the Cyber Warfare is already being waged by certain elements and must be countered with courage. In this connection, Senator Mushahid Hussain also welcomed recommendations made in the International Judicial Conference yesterday organised by the Supreme Court.

He hoped the joint task force will be capable to promote the required awareness for Cyber Security and to bring all relevant stakeholders on one platform for collaborated and organized efforts.

In his address, Mr. Ammar Jaffri, President PISA and organizer of the Cyber Secure Pakistan Conference informed the participants about the different steps taken by PISA to secure the Cyber Space of Pakistan. He said the PISA has been engaged in the number of Cyber Drills during last year and has trained more than 1000 university students, information security professionals and members of law & enforcements for secure use of Cyber Space and to establish international liaison with the similar organizations functioning in other different countries.

Mr. Jaffri welcomed the formation of Joint Task Force on Cyber Security and hoped to boost the collaboration between public & private organization as relevant state holders of Cyber Security.

Cyber Security professionals from number of other countries Malaysia, USA, Australia Kingdom of Saudi Arabia etc. were also participated in the annual conference and had delivered their key note speeches on vital topics related to Cyber Security.

How Emerging Smartphone Manufacturers Keep Prices Ridiculously Low

Almost all flagship phones by top manufacturers — if not anything — have got one thing in common: “steep pricing”, which is the very thing that probably scares most people away. Whether it’s the Windows Phone running Lumia 920, or the BB10 running Z10, all flagships typically start at $500. And we aren’t even thinking about the iPhone yet. Spending $1000 on something which will be declared old just after a single year, along with upgrading annually is still not something most people think of as sensible.

Thankfully though, a change has been observed in trends lately. As more and more companies have started going the Google way, the prices of flagships have plunged too. Of course the phones by the big guns are still pretty expensive but capable phones by Chinese manufacturers have really changed the scenario by 180 degrees.

Compared to the Galaxy SIV, for example, the Huawei Ascend retails for far less and the specs really aren’t bad. The same goes for Xiaomi, Meizu and ZTE’s flagships. Even QMobile’s top-of-the-line phone, the Noir A12 goes for just around Rs. 21K. How is it possible that a great tablet, the Nexus 7 costs only $200 while an equivalent Tegra-running phone over $500?

The most common recipe for keeping costs down is to use low-prove components. The Noir A10, for instance, has a dual-core MediaTek processor which can’t really be compared with a SnapDragon unit but it isn’t meant to be competing with one! It’s just enough for daily tasks but maybe not so much for playing N.O.V.A. The end product may not get particularly affected by this “quality-cut” but prices do remain low. Also the thing to realise is that a large number of people actually don’t need an octa-core processor.

Google has an even better solution of keeping prices down. Instead of making profit through hardware on the Nexus line-up, it relies on the software, i.e. the Google services. So while it makes a razor-thin (or no) profit on hardware, the money comes from the stuff that people buy from the Play Store and other services.

Xiaomi’s approach is even more interesting. Of course, it’s not Google so they neither have a gigantic app store nor do they have billions of dollars in their pocket. The company instead makes money on the accessories that it sells plus its services. If you think that doesn’t make sense then think again because the company made $2 billion in revenue last year. And before you dismiss its phones as being worthless, the Galaxy S4 too costs $236 to build but is sold for $700. Spending $700 on a thing which costs just $236 is NOT very sensible!

So the next time you shell out your money on the best smartphone or tablet available in the market, just keep this is mind that you may be paying more than 2 to 3 times the worth of the device you’re buying. And that your money might be better spent elsewhere.

Credit to Cnet for that Xiaomi way!