Operators are leaking 5% of their revenues. We can findthem.
With a vast selection of networks, carriers, tariffs and content tochoose from, revenue is increasingly under attack from a variety of sources.Revenue leakage has been a major value loser for telecomoperators over the years, and despite the numerous approaches andtools employed, conservative estimates range from 1% to 5% of traffic going unaccounted for, even more in emerging or high-growthmarkets. According to operator estimates, 3% - 15% of revenues stillgo uncollected, which amounts to around $140bn dollars a yearglobally.While fraud is a relevant source of such leakage, so too are internalinconsistencies, process failures and malfunctioning systems, whichare fully under the control of the operator and thus in a position tobe tackled systematically and eliminated or reduced to negligiblevolumes.With the market moving from simply eliminating weaknesses to anend-to-end revenue maximisation strategy, Revenue Assurance ismission critical for both increasing revenue and encouraging agreater focus on accounting and billing transparency.An effective approach to Revenue Assurance (RA) needs to have astrong foundation of governance (usually in the form of a dedicatedteam and clear responsibilities assigned), operations (typically arecurrent monitoring of product and process changes) andsupporting technology (test call generators, automatic alertsystems, and the like).At mmC GROUP we have extensive experience in the subject of Revenue Assurance: many of our professionals have spent yearsworking with some of the leading operators worldwide performingrevenue assurance diagnostics, valuating the size of leaks, devisingand implementing strategies to eliminate or control them, andhelping our clients establish their own RA functions and systems.Our experience shows that in some cases, individual leaks can bequite substantial, and frequently are not too hard to tackleindividually. If we have to identify some examples in revenue leaks, Iwould point out:1.Lacking coordination in the P&S development and launchprocess leading to provisioning and billing inconsistencies:250k EUR/year2.Incorrect processing of VAT in returns: 4M EUR/year3.Lack of cross-checking customer balances for businesssegments (fixed, mobile, etc.) leading to non-collection of overdue debt: 4M EUR/year