Section 1 : Chapter 2

EXPLAINING THE PROBLEM

Telco operations consist of a long and complex chain of interrelated
operations that work together to deliver telecommunications servic-
es to customers, then track the services delivered and bill customers
for them.

As long as the systems and processes are stable and efficiently run,
there is nothing to worry about. Everything sold is billed and all is
well.

However, as the chain of operations that support these two core

functions grows longer and more complicated, more and more
breakdowns in the process can occur.

A “leak” is when a telco service is delivered, but not billed and col-
lected on. As time goes on, many telcos are finding more leakage in
their operations, not less.

The Breakdown of the

Revenue Management Process
The following illustration will help explain this problem.

Calls Billing Payment

happen happens happens

minutes of service delivered

x
average billing rate per minute
=
earned revenue

Figure 1.2.1 Simple view of the revenue generation process

eXcellence in Telecommunications 15