Global system for Mobile Communications (“GSM”) stands as one of the most transformative technologies. It was launched in 1990s. According to the well know quote by John Donne, “No man is an island entire of itself.” Businesses and individuals in faraway locations could now reconnect to the global financial system thanks to GSM.
Once requiring lengthy lines at physical banks, financial services became accessible through a simple handset. Ernest Hemingway once said, “Courage is grace under pressure.” Even without internet access, GSM gives assurance that safe financial transactions can be conducted. Just dial codes like “#123#” and follow simple instructions to send money or get account information etc. Yes, unstructured supplementary service data (“USSD”) is a simple way for mobile phones to talk to banks.
GSM network make it happen when we receive OTP via SMS to secure financial transaction. It’s very much in line with George Orwell quotes “Big brothers is watching you”.
Mobile money service use GSM networks to provide bill payment, credit access and money sending and receiving via mobile devices. We are reminded in Leo Tolstoy’s War and Peace that “The strongest of all warriors are these two—Time and Patience.” GSM wallets have taught us to be patient and trust technology to handle finances. GSM enabled services have become the lifelines for millions of people particularly in remote and rural areas. Users may access crucial financial services such as loans, saving accounts, and payment systems through simple mobile phones thereby strengthening both local economies and people.
GSM encourages financial travel by fostering a more integrated global economy. This idea is echoed by Mark Twain’s words in The Adventures of Huckleberry Finn: “Travel is fatal to prejudice, bigotry, and narrow-mindedness.”
GSM integration with finance poses challenges despite of its transformative impact. A Tale of Two Cities by Charles Dickens contains a moving quote that is still applicable today: “It was the best of times; it was the worst of times.” GSM offers amazing money prospects but it also necessitates strong security measures to keep the consumers safe. The famous quote from Sherlock Holmes by Arthur Conan Doyle reads, “The world is full of obvious things which nobody by any chance ever observes.” Vigilance and awareness are essential to stop fraud involving SIM cards. Users may experience several inconveniences in case when mobile banking and payment services are disrupted by network failures.
As technology advances, GSM will continue to be essential to financial innovation. GSM-based financial solutions could be enhanced by Blockchain and Artificial Intelligence (“AI”), raising security and transparency.
Since GSM carriers frequently lease data centers and cell towers, the IFRS 16 standard has a big effect on their financial reporting. Lease agreements must be properly classified and valued for financial health to be accurately represented. IFRS 15 (Revenue from Contracts with Customers), also impacts how telecom operators recognize revenue from bundled services, such as voice, data, and device sales. IFRS 9 requires GSM operators to recognize ECL on customer receivables especially those arising from instalment payment plans for devices. M&A in GSM sector also triggers IFRS 3 requiring accountant to assess the fair value of acquired assets, including intangible assets like spectrum licenses, and perform regular goodwill impairment tests.
From the regulatory perspective, while processing consumer data, GSM-based financial services must strictly adhere to data privacy laws such as GDPR. Spectrum licensing is still a major worry since government regularly revise their pricing and allocation regulations, which has an impact on long term financial planning.
Digital payment regulations have gained importance with the rise of mobile wallets and payment services powered by GSM networks. Accountant must ensure these services comply with AML and KYC guidelines.
GSM has reshaped the financial landscape by enabling mobile banking, payment systems and financial inclusion. GSM-driven companies may vision long term success in the world that is becoming more interconnected by guaranteeing compliance, upholding strong financial reporting systems and implementing proactive tactics. We are reminded by the insights of Ralph Waldo Emerson’s wisdom that “The world belongs to the energetic.” The financial ecosystem is energized by the GSM, which makes it more inventive, inclusive and accessible to everyone, anywhere.
(This article is written purely for academic purpose. For any queries/ discussion, author can be reached at garimamittal@live.in)
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