Case Study: How a Kazakhstani Telecom Company Saved on Authentication Costs

Mar 20, 2025By Миржан Ибрагимов
Миржан Ибрагимов

Introduction to the Challenge

In today’s digital age, telecom companies face numerous challenges, one of which is ensuring secure customer authentication while keeping costs manageable. For a leading telecom company in Kazakhstan, this was a significant issue. They needed a solution that would not only enhance security but also reduce the soaring costs associated with traditional authentication methods.

telecom security

The Problem: Rising Authentication Costs

As the company expanded its services, the number of authentication requests increased exponentially. Traditional methods, such as one-time passwords sent via SMS, became financially burdensome. These costs were compounded by the need to maintain a high level of security and user trust. The company realized that without a change, their profit margins would continue to shrink.

The challenge was clear: find a cost-effective and secure authentication solution that wouldn’t sacrifice the customer experience. The company sought a method that could be seamlessly integrated into their existing infrastructure without causing major disruptions.

Exploring Alternative Solutions

To address this issue, the company began exploring alternative authentication solutions. They conducted a thorough analysis of various technologies, including biometric authentication, push notifications, and mobile app-based verification. Each option had its own set of advantages and trade-offs.

biometric technology

After careful consideration, the company decided to implement a multi-factor authentication (MFA) system using a combination of biometrics and mobile app notifications. This approach promised enhanced security while significantly reducing the reliance on costly SMS-based verifications.

Implementing the New System

The implementation of the new MFA system was strategically planned to ensure minimal disruption to existing services. The company launched a pilot program, initially targeting a small segment of users to test the effectiveness and user acceptance of the new system.

Feedback from the pilot program was overwhelmingly positive. Customers appreciated the added layer of security and found the new system to be more convenient than traditional methods. Following this success, the telecom company rolled out the new authentication method across its entire customer base.

customer feedback

The Results: Cost Savings and Enhanced Security

The results were impressive. By reducing reliance on SMS-based authentication, the company slashed its authentication-related costs by over 40%. This significant cost saving was achieved without compromising on security or customer satisfaction.

  • Cost Reduction: Over 40% savings in authentication costs.
  • Enhanced Security: Multi-factor authentication provided a robust defense against unauthorized access.
  • Improved Customer Experience: Positive feedback from users who found the process seamless and secure.

Conclusion: A Model for Success

This case study demonstrates how innovation in authentication technology can lead to substantial cost savings and improved security for telecom companies. By adopting a strategic approach to problem-solving and embracing technology, the Kazakhstani telecom company not only overcame its challenges but also set a precedent for others in the industry.

As technological advancements continue to evolve, companies must remain agile and open to change. This case study serves as an inspiring example of how foresight and adaptability can drive success in a rapidly changing digital landscape.