February 11, 2014 04:00 ET

tyntec Forecasts Top Mobile and Telco Predictions for 2014

MWC highlights: Google, Facebook and Apple intensify, WebRTC creates opportunity to evolve and 2-factor authentication grows

LONDON, UNITED KINGDOM--(Marketwired - Feb. 11, 2014) - Awaiting the world's biggest trade show and conference for mobile trends at Mobile World Congress in Barcelona, tyntec, a mobile interaction specialist, today announced its top 2014 predictions for the global telecom industry. tyntec exhibits during Mobile World Congress at hall 7, stand C80 from February 24-27, 2014.

tyntec forecasts that 2014 will be the year of stronger mobile-to-mobile communication offerings from tech heavyweights like Apple, Facebook, and Google, who will continue to invest millions in mobile communications technology to enhance the mobile experience. Simultaneously, operators will witness the launch of standards and technologies like WebRTC (Web Real-Time Communications) and VoLTE (Voice over LTE), which will play a contributing role in accelerating the OTT (Over The Top) ecosystem.

While the respective appearance of these new standards and technologies will create equal opportunities for both OTT players and operators alike, they will also turn up the pressure on the largely defeated RCS-e/Joyn initiative. On the already tense European regulation front, 2014 will see an increased tension between OTT and operators causing more upheaval for MNOs (Mobile Network Operators).

"Mobile World Congress is the place to discuss and discover latest trends in the mobile industry and I have high expectations for lively discussions at the show. One hot topic will be WebRTC which will extend potential-for-growth to both OTT players and operators, while creating extra opportunity for operators to evolve. 2014 is a challenging year with the introduction of new EU roaming regulations that will bring OTTs and operators into further competing situations, causing more layoffs and consolidation for operators," said Thorsten Trapp, Co-Founder and CTO of tyntec. "I'm confident there will be a tremendous focus on One-Time Passwords as a mechanism to authenticate user identity and there will be a massive adoption from all types of businesses and Internet companies this year."

tyntec 2014 trends and predictions highlights:

• OTT providers beef-up mobile messaging

In 2013, Silicon Valley's elite players increased their stake in mobile with various rollouts of mobile messaging capabilities. For instance, Apple's iMessage, Google's Hangouts on Android phones, Facebook's revamped Messenger and most recently, Instagram direct. The appeal with these types of mobile-to-mobile communications capabilities is that internet players are able to link phone numbers to online accounts, enabling users to communicate with the entire network via their mobile application. As a result, the reach of messaging capabilities provided by these applications will squash those of traditional offerings provided through mobile operators, who will continue to see their SMS revenues tumble. There will be a continued investment in 2014 from internet players to increase functionality and adoption of their messaging services.

• VoLTE: unexclusive voice and data benefits for operators

Mobile operators are under no illusion that OTT communications will have a financial impact on their industry. More consolidations, like those seen by European MNOs, will be imminent for operators who continue to sidestep partnering opportunities. In an attempt to regain their footing, many will flock to VoLTE, a standards-based technology that supports VoIP calls over the LTE network.

Helping to unite the voice and data value chains for MNOs, VoLTE will allow operators to increase internal efficiency by moving voice off of old networks to data apps. Leveraging operators' competitive differentiator -connectivity- VoLTE will allow operators to deploy more quality voice, video calls, and messaging by linking directly to phone numbers.

In 2014, operators will plan to roll out VoLTE devices to help cut operating costs and compete with OTT applications based on quality. The twist is that the improvements of the network due to VoLTE won't just be exclusive to operators, but will be available to OTT providers for inclusion into their offerings as well.

• WebRTC spurs innovation and creates opportunity for operator evolution

According to a recent survey conducted by mobilesquared, 36% of MNOs and MVNOs around the world are uncertain of the impact Joyn will have on their ability to tackle OTT players. This survey confirmed Trapp's previous year predictions when he identified major hurdles that RCS-e would have to overcome in order to succeed, all of which have come to fruition.

Supported by Google, Mozilla and Opera, WebRTC enables real-time communications using a web browser without the need to download plug-ins. 2014 will be the year that WebRTC fosters easy-to-access innovation in communication. Because it will emerge as a standardized functionality for all browsers, the process for web developers to include OTT voice and video will become super simplified. WebRTC will act as an accelerant, speeding up the OTT ecosystem and put mounting pressure on the GSMA's RCS standard.

The combination of WebRTC standardization and sonic OTT growth will further amplify pressures for operators and result in additional revenue loss. Operators that embrace the new standards and technology will be the ones best positioned to take advantage and create future monetization models for it.

• Securing data in the cloud: two factor authentication adoption rate will skyrocket in 2014

2013 proved to be a climactic one for hackers with more than two million reported account breaches from various websites including Facebook and Twitter according to analysts at Trustwave1.

Hacks targeting companies, especially those in social media, will become more aggressive and premeditated with mobile devices magnifying these target groups even more. To help combat hacks in 2014, internet companies will continue embracing SMS-based two factor authentication (2FA), and is anticipated to experience a 50% adoption rate, globally.

User demand for personal data protection on individual accounts will increase, compelling business leaders to focus and integrate reliable security measures. SMS-based two factor authentication will be recognized as the most effective tool in combatting security breaches and acceptance will surge across various vertical markets.

Banking, online shopping retailers and companies dealing with monetary transactions will be the markets driving the most growth for 2FA because of the need to protect transactions and personal data. Additionally, real-time location identification will be the natural progression of 2FA, placing another barrier before hackers.

1 Source: http://blog.spiderlabs.com/2013/12/look-what-i-found-moar-pony.html

About tyntec

tyntec (www.tyntec.com) is a mobile interaction specialist, enabling businesses to integrate mobile telecom services for a wide range of uses - from enterprise mission-critical applications to internet services. The company reduces the complexity involved in accessing the closed and complex telecoms world by providing a high quality, easy-to-integrate and global offering using universal services such as SMS, voice and numbers.

Founded in 2002, and with more than 150 staff in six offices around the globe, tyntec works with 500+ businesses including mobile service providers, enterprises and internet companies.

Contact Information

  • Press contact tyntec
    Caroline Dreier
    +49 89 202 451 110

    Press contact US PR agency
    Barokas Public Relations
    Frances Bigley
    +1 206-264-8220

    Press contact UK PR agency
    Anthony D'Alton
    +44 208 875 7973