Mobile Anti-Fraud Technology, Telecom Fraud Management, Roaming Fraud

1. EU Roaming Regulations A chance to turn Regulation Challenge into Revenue Opportunity

2. Overview The future of regulated mobile roaming services within the EU appears to be somewhat contradictory. On the one hand, voice and data services are predicted to increase considerably, while on the other hand, operators are being regulated in such a way as to restrict the rates that can be applied for these services. Ovum predicts that in the period from 2016 to 2020, EU regulated roaming voice traffic will increase somewhere in the order of three and half times. EU regulated roaming data traffic for the same period is predicted to increase almost eightfold. This highlights a trend of growing traffic starkly contrasted with lower revenue per transaction for operators. Mobile Report: 2015-20 Roaming Forecast Regulation With effect from 15th June 2017, mobile roaming charges will be abolished throughout the EU as operators adopt EU Regulation 2015/2120. From that date, roaming providers will no longer be allowed to levy surcharges over and above the domestic retail prices for regulated voice,

3. SMS and data roaming services, in any EU member state. The regulation requires operators to implement a ‘Roam Like at Home’ with fair usage policy for all of their roaming subscribers. Given the disparity between domestic rates across the member states, the fair usage policy is intended to prevent any potential abuse that might arise out of permanent roaming or other anomalous usage scenarios. The ‘Fair Usage Policy’ definition in the regulation expects that operators will measure roaming usage in real time and provide notifications on fair usage limits. There is, however, an allowance for the fair usage limits to be variable depending on the periodic nature of the roamer’s travel, so one case will not necessarily fit all situations. ‘Roam Like at Home’ refers to subscribers of operators in EU member states being able to use roaming services within the region at domestic rates. “The ‘fair use policy’ is intended to prevent anomalous usage of regulated retail roaming roaming customers, such as the use of such services by roaming customers in a Member State other than that domestic provider for purposes other than periodic travel.” abusive or services by of their Operators may apply a roaming surcharge beyond defined fair usage on the consumption of regulated roaming services that have been provided at the applicable domestic retail price. In relation to the surcharge, though, Article 6e of the regulation states: “The sum of the domestic retail price and any surcharge applied for regulated roaming calls made, regulated roaming SMS messages sent or regulated data roaming services shall not exceed EUR 0,19 per minute, EUR 0,06 per SMS message and EUR 0,20 per megabyte used, respectively” Problem As operators move to comply with the regulations, it is

4. 3 apparent that traditional business supports systems (BSS) are not equipped to deal with the complexity of the obligations placed upon them in a simple manner. Remember, operators will now have to: • Define a fair usage policy per subscriber or bundle • Track usage of voice, SMS and data services in real time per subscriber • Notify subscribers of their fair usage limits where applicable and of the out-of-bundle charges that will apply once the limits have been exceeded Solution Mobileum’s EU Reg IV solution, built on our proven RoamWallet product, supports operators fully in their move towards compliance with the regulation. Features • Serves as a ‘Roam Like at Home’ enabler with Fair Usage Policy • Tracks Real and Non Real-Time usage across all services • Multiple threshold control options, including roaming tariff notifications on latch-on as well as on percentage-of-threshold breach • Flexible policy tenures complement operator tariff plans and subscriber billing cycles • Inbuilt usage analytics segmentation and personalized offerings • Inbuilt IoT device detection allows operators to cater for permanent roaming IoT devices tied with special customer agreements • Self-care management via multiple channels (SMS / USSD / Portal / Application) • Abstracts the impact on traditional network BSS and CRM systems using well-defined standard interfaces for detailed customer

5. 4 Conclusion It is clear that EU Regulation 2015/2120 will challenge operators both financially and technically, but with the right solution in place it will be possible to: • Define a new, innovative and mutually beneficial roaming relationship with subscribers • Increase subscriber satisfaction by empowering them to confidently use voice, SMS and data services while roaming in the EU • Effectively monetize the subscriber roaming experience on a recurring basis Mobileum’s EU Reg IV solution allows operators to turn regulation challenge into revenue opportunity! Mobileum Inc. 2880 Lakeside Drive Suite #135 Santa Clara CA 95054 United States of America Ph: +1 (408) 844 6600 Fx: +1 (408) 520 4589 info@mobileum.com press@mobileum.com To find out more about Mobileum and how we can help you as you move to comply with EU Regulation 2015/2120, visit www.mobileum.com