How it Works
Cicada Exchange allows mobile network operators to buy and sell roaming capacity on their networks to other operators. Roaming partner networks are the networks that mobile operators use to provide service to their customers when they are outside of their home coverage area.
Exchange trading platforms for mobile roaming capacity operate as a marketplace where mobile operators list their available capacity and other operators bid to purchase it (or vice-versa). The platform also provides tools and services to help operators manage their capacity and optimize their use of the platform.
The main benefits of online exchange trading for mobile roaming capacity are that it allows operators to better manage their partner roaming networks and to generate additional roaming revenue. Cicada Exchange provides a more efficient and cost-effective way for operators to access the roaming capacity they need for their customers.
Basics – post an RFQ and get a response
An operator that wants to capacity in another country in a given period can post an RFQ (Request for Quotation) into that partner network. It looks something like this
An operator that is willing to supply those services can then accept or make a counter proposal.
One way and anonymous
Like a normal exchange market, the transactions are one-way and anonymous. This means that there is no traffic balancing.
Many MNOs ask how can it be anonymous? “I care about quality!” “ There is one guy I swore I’d never do business with again” or simply “what happens when I don’t have a roaming agreement with a counterparty? I can’t set up an agreement withing 30 days”
The answer is that all these things can be dealt with through the use of the Risk Manager. When a MNO joins the exchange, as part of the onboarding process, the MNO can indicate who they will and will not do business with, and they can self reconfigure the Risk Manager whenever required.
So if in a country, an MNO has roaming agreements with two operators that the MNO is happy to deal with, but not the third, then that MNO will put a ‘Stop’ block on the third MNO – if they thereafter try to trade with the third MNO then the Risk Manager will prevent the deal from going through. The Risk manager is very sophisticated allowing limits in one direction only or in both directions, for one or more products and each by the specific counterparty. It can even work with incremental values for set timeperiods.
In this way, even though the Exchange dashboard is anonymous, an operator will never find itself doing a deal that with a partner that it does not have an technical solution with. An operator will also never have to deal with a counterparty that it does not want to.
Risk manager to control eligible partners
Using the Risk Manager, the user is able to limit the operators it deals with and the extent to which they are prepared to deal with a counter party. If an operator does not meet your quality standards or does not provide the services required, then they can be blocked or the value of trades can be limited. This gives any user 100% complete control of their trading environment.
The Risk manager is sophisticated and can allow limits to be set by MNO/Country in one direction only or in both directions, for one or more products and each by the specific counterparty.
In this way MNOs have complete control of their trading with the exchange environment.
Traders can be authorised to set their own risk limits or the risk manager function can be independent of the trader function. Whatever suits you!!
