Telecom Reporting Training

Telecom Revenue Assurance Reporting
Training
Ikwe Gideon
Revenue Assurance Consultant
gideon.ikwe@datahouseconsulting.com
This document contains information confidential and proprietary to Datahouse. No part of it may
be used, circulated, quoted or reproduced with out Datahouse’s consent.
Training agenda
1 Overview of the Revenue Assurance(RA) Incident Reporting
2 Overview of RA Monthly Management Report
3 Quantification of Revenue Leakages
9 July 2015 (c) 2014 Datahouse Consulting 2

Overview of the Revenue Assurance(RA) Incident
Reporting
Background of the investigation
Sources of data used or evidence of finding
Findings/observation
Revenue and Business impact
Recommendations and conclusion

Background of the investigation Content
• Brief introduction of your investigation
• Why you are conducting it
• Any reference to prior investigation/assignment e.g
Sources of data used or evidence management request etc
of finding
Example
• As part of our weekly/monthly RA review of prepaid
traffic, we noticed that some GRPS traffics are not
Findings/observation being charged. And these traffic does not belong to
bundled GRPS service, there are normal per usage
billing traffic type. This prompt our further investigation
to know why this is happening

• All the various data uses and their sources
• Other non data sources as evidence of findings
Sources of data used or evidence

of finding Example
• OCS,
• Billing and rating
• Invoices
Findings/observation • GPRS
• Confirmation from other department
• etc

• What you observed
• All reasonable deduction noticed

of finding Example
• Missing CDR’s
• Under and over Billing
• Missing data
Findings/observation • Misapplication of business rules
• etc

Background of the investigation
Content
• The Revenue loss, per day, month and year
• The potential revenue loss, if the risk exist but not
precipitate yet
• The effect of this observation on customers, short and
of finding
long term
• The effect on the image of the company long and short
term
Findings/observation
Example
• Adverse effect on customer perception about MCI
• Effect on customer perception about billing system and
professionalism
Revenue and Business impact • The total revenue loss compare to total revenue from
that revenue stream
• Customer churning the network
• etc

• Possible action to be taken to correct effect
• Follow up action to ensure effect is ratify

of finding Example
• The under billing should be fixed immediately because
we are losing money daily.
• The new data source should be incorporated in the
Findings/observation billing system immediately.
• Marketing should recall the product and improve on the
features because we are losing money
• Customer should be informed at a massive level
campaign on the feature of the service to stimulated
Revenue and Business impact demand.
• etc

Training agenda

Overview of RA Monthly Report
A listing of major issues faced during the month
Quantification of the impact on revenues due to issues during the month
KPIs for the reporting month and previous two months along with the year to date
status
Details of Major Revenue Stream including deferred revenues as per IN system
Other ad-hoc details and analysis requested by the Group on a periodic basis

A listing of major issues faced during the • Prepaid (IN, SDP, Charging, Tariff Table, Service
month Class, Voucher Errors, Activation)
• Post paid (CDR Rating, Tariff Table, Package Plan,

Activations, Disconnections)
Quantification of the impact on revenues
due to issues during the month • Switch (MSC & HLR Service Provisioning,
Subscriber mismatch between switch)
• VAS (SMS, Roaming, MVoucher, jiring, WLL

KPIs for the reporting month and previous Network, GPRS, SMS Info,)
two months along with the year to date
status
Date Estimated
Details of Major Revenue Stream including Risk Revenue Risk ident Priority Revenue Action Current
deferred revenues as per IN system Issue Leakage Description ified Level Loss/saving Taken Status
Other ad-hoc details and analysis requested

by the Group on a periodic basis

A listing of major issues faced during the
month Interconnec
Finding for the Month of Prepaid Post-paid Network VAS t/Roaming
Revenue Losses (1)
Fraud Losses (2)

Quantification of the impact on revenues Reporting Errors (3)
due to issues during the month
Revenue Foregone (4)
Revenue Exposure (5)
KPIs for the reporting month and previous Total Risk Exposure
(1+2+3+4+5)
status
Monthly Gross Revenue
Details of Major Revenue Stream including % of identified Total risk

exposure to gross revenue
deferred revenues as per IN system
Revenue Savings from Loss

Prevention

by the Group on a periodic basis % of total savings to Total Risk
exposure

No. KPI Formula Oct,2012 Nov,2012 YTD
month 1 2% 1% 3%
Provisioning (Total unsuccessful prepaid
Failures – provisioning )/Total prepaid subscriber
Prepaid sent for provisioning via the platform)
Quantification of the impact on revenues

due to issues during the month
2 9% 10% 12%
Provisioning (Total unsuccessful postpaid
Failures – Provisioning)/ Total postpaid subscriber
Postpaid sent for provisioning via the platform)
KPIs for the reporting month and previous

status 3 0.1% 0.2% 0.4%
HLR vs. Prepaid Prepaid MSISDNs present only in HLR
billing system and not in prepaid billing
system(IN))/Total Prepaid MSISDNs
present in HLR
Details of Major Revenue Stream including
deferred revenues as per IN system
4 0.02% 0.03% 0.05%
HLR vs. (MSISDNs present only in HLR and not
Postpaid billing in postpaid billing system)/Total
system Postpaid MSISDNs present in HLR
by the Group on a periodic basis

Retail Voice(rials) SMS(rials) GPRS/Data(rials) MMS(rials) VAS(rials) Monthly Credit
Revenue Recurring Transfer
Reporting charges
Post-paid
month Prepaid
Total(rials)
Wholesale Revenue/Cost Reporting Voice(rials) SMS(rials) GPRS/Data(rials) MMS(rials) VAS(rials) Total(rials)

Quantification of the impact on revenues Roaming TAPIN
Roaming TAPOUT
due to issues during the month Mark-up Revenue(TAPIN)
Interconnect Outgoing all Partners
Interconnect Incoming all Partners
National roaming(kish)
WLL interconnect cost all Partners
TIC international cost
VAS
KPIs for the reporting month and previous Total(rials)

status Prepaid Post-paid
Revenue and Volume traffic per destination Voice(rials)/Minutes SMS(rials)/count Voice(rials)/Minutes SMS(rials)/Count
On-net
Off-net
Details of Major Revenue Stream including International
deferred revenues as per IN system Total
Tot
Freebies Reporting Voice(Minutes) SMS(count) GPRS/Data(MB) MMS(MB) VAS(count)-SMS al
Post-paid
Other ad-hoc details and analysis requested Prepaid
by management on a periodic basis Total
Precentage of Freebies value to Total revenue

Training agenda

Quantification of Revenue Leakages-Definition and
methods
Revenue Loss
Revenue Exposure
Revenue Forgone
Revenue Savings and Recovered(Actual and Exposure)
Reporting Error

Revenue Loss
• Definition
Actual Revenue Loss resulting from the non-

collection (or incomplete/inaccurate
Revenue Exposure computation) of revenues for services
provided to customers and/or partners i.e.
service was provided but revenues not
collected or inaccurately charged to
customer's account. E.g. incorrect rating of
calls, free calls due to configuration errors,
Revenue Forgone subscription fraud etc.
• Method of Calculation
Will be determined as follows –

Revenue Savings and Recovered(Actual and
count/volume/duration of unbilled ‘free’
Exposure)
network event (or differential of incorrectly
billed) x blended tariff plan for the affected
network event.
Reporting Error

Revenue Loss
• Definition
Potential Exposures arising from process or

systems gaps which could easily be converted
Revenue Exposure to revenue losses either by internal omission
or commission errors or deliberate exploitation
of the process/system gaps by fraudulent
parties. E.g. weak RCV activation process;
weak access control etc.
Revenue Forgone
Will be determined as follows – total potential

loss exposure as at a point in time i.e.
money/revenues at risk as a result of the
Exposure)
exposure..
Reporting Error

Revenue Loss
• Definition
This is lost revenue generation opportunity as

a result of service unavailability and typically
Revenue Exposure results in loss of market share for the duration
of the incident. E.g. core network node
downtime resulting in customers' inability to
call for the duration of downtime
Revenue Forgone • Method of Calculation
Will be calculated as a projection based on

day-of-week average for last 3 weeks from
day of incident/service failure. Example: If on
a Wednesday there is a drop in normal traffic
Exposure)
trends for a particular node due to some
challenges on the node forgone revenue will
be computed as the difference between
average revenue on that node for immediate
Reporting Error past 3 Wednesdays less revenue reported for
Wednesday with the incident.

Revenue Loss
• Definition
This represents revenue saved i.e. losses

adverted as a result of: Revenue/fraud
Revenue Exposure leakage situation corrected i.e. revenues that
would have been lost if the particular leakage
was not identified and plugged. Prevention of
revenue foregone e.g. RA activities resulting
in prevention or reduction network down time.
Revenue Forgone A positive addition to revenues gained as a

direct result of an RA intervention
(determined as a positive deviation from
normal revenue or cost trend) e.g.
supplementary invoices/bills issued to
Revenue Savings –Actual partners/customers as a result of traffic
hitherto unbilled, error in call routing resulting
in free calls, activation of wrong rates on the
charging platform etc.
Reporting Error • Method of Calculation(Cont’)

Revenue Loss • Method of Calculation
When a revenue leakage has been effectively

plugged, the revenue savings from such mitigations
shall be recognized using either of the following
approaches below depending on feasibility:
Revenue Exposure
Approach A:
• Compute actual revenue loss as determined in (A) for
past 6 months or less if duration of leakage < 6
months
• Based on above, compute average monthly loss
• Project average monthly loss for next 12 months to
Revenue Forgone
determine what would have been lost if leakage was
not plugged.
Approach B:
• Determine revenue trend and projections for affected
revenue stream before the leakage was plugged and
Revenue Savings –Actual compare against new trend and projections
• After the fix over a period of one month. The
difference is then projected for 6 months and reported
as savings gained from fixing the leakage.
• Revenue saving projections will be done by RA
Manager while each operating unit will report only
Reporting Error quantifiable revenue savings (i.e. no projections)
where applicable.

Revenue Loss
• Definition
This represents revenue exposures prevented

as a result of RA mitigation efforts to plug
Revenue Exposure potential leakage situation i.e. revenues that
could have been lost if the particular exposure
was not identified and plugged
Revenue Forgone
When a revenue exposure has been
effectively plugged, the revenue exposure
savings from such mitigations efforts shall be
recognized as – Total Revenue Exposure
Revenue Savings –Exposure (revenues at risk) divided by X. Where X is
number of days between date exposures was
identified and date exposure was closed.
Revenue Recovered/Reporting Error

• Definition
Revenue Loss Revenue Recovered
This is revenue recouped from an actual revenue
loss situation e.g. supplementary invoicing of
partners following traffic reconciliations, arrears
billing for postpaid and increase in revenues due
Revenue Exposure to reduction in revenues foregone.
Reporting Errors
This relates to under/over statement of revenues
due to error of omission /commission identified by
RA e.g. understatement of minutes of use due to
Revenue Forgone
delayed / unprocessed / damaged TT-files
impacting interconnect traffic.
Revenue Recovered:
Revenue Savings –Exposure
Actual amount initial lost and not accounted for in
the daily revenue report but subsequently collected
and captured in the books of accounts.
Reporting Error:
Revenue Recovered/Reporting Error Actual value by with the affected revenue stream
was impacted.

Thank you!

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Telecom Revenue Assurance Reporting

1 Overview of the Revenue Assurance(RA) Incident Reporting

2 Overview of RA Monthly Management Report

3 Quantification of Revenue Leakages

9 July 2015 (c) 2014 Datahouse Consulting 2

Background of the investigation

Sources of data used or evidence of finding

Revenue and Business impact

Recommendations and conclusion

9 July 2015 (c) 2014 Datahouse Consulting 3

Revenue and Business impact

Recommendations and conclusion

9 July 2015 (c) 2014 Datahouse Consulting 4

Sources of data used or evidence

Revenue and Business impact

Recommendations and conclusion

9 July 2015 (c) 2014 Datahouse Consulting 5

Sources of data used or evidence

Revenue and Business impact

Recommendations and conclusion

9 July 2015 (c) 2014 Datahouse Consulting 6

9 July 2015 (c) 2014 Datahouse Consulting 7

Sources of data used or evidence

Recommendations and conclusion

9 July 2015 (c) 2014 Datahouse Consulting 8

1 Overview of the Revenue Assurance(RA) Incident Reporting

2 Overview of RA Monthly Management Report

3 Quantification of Revenue Leakages

9 July 2015 (c) 2014 Datahouse Consulting 9

A listing of major issues faced during the month

Quantification of the impact on revenues due to issues during the month

Details of Major Revenue Stream including deferred revenues as per IN system

9 July 2015 (c) 2014 Datahouse Consulting 10

• Post paid (CDR Rating, Tariff Table, Package Plan,

• VAS (SMS, Roaming, MVoucher, jiring, WLL

Other ad-hoc details and analysis requested

9 July 2015 (c) 2014 Datahouse Consulting 11

Fraud Losses (2)

Revenue Exposure (5)

Details of Major Revenue Stream including % of identified Total risk

Revenue Savings from Loss

Other ad-hoc details and analysis requested

9 July 2015 (c) 2014 Datahouse Consulting 12

Quantification of the impact on revenues

KPIs for the reporting month and previous

9 July 2015 (c) 2014 Datahouse Consulting 13

Wholesale Revenue/Cost Reporting Voice(rials) SMS(rials) GPRS/Data(rials) MMS(rials) VAS(rials) Total(rials)

KPIs for the reporting month and previous Total(rials)

two months along with the year to date

Details of Major Revenue Stream including International

deferred revenues as per IN system Total

Other ad-hoc details and analysis requested Prepaid

by management on a periodic basis Total

Precentage of Freebies value to Total revenue

9 July 2015 (c) 2014 Datahouse Consulting 14

1 Overview of the Revenue Assurance(RA) Incident Reporting

2 Overview of RA Monthly Management Report

3 Quantification of Revenue Leakages

9 July 2015 (c) 2014 Datahouse Consulting 15

Revenue Savings and Recovered(Actual and Exposure)

9 July 2015 (c) 2014 Datahouse Consulting 16

Actual Revenue Loss resulting from the non-

Will be determined as follows –

9 July 2015 (c) 2014 Datahouse Consulting 17