The Impact of Data Traffic

Explosion and LTE on

Revenue Assurance and Risk.
Rodrigo Otávio Moreira Gonçalves - VIVO Brazil
Marcos Teixeira - cVidya
September 17, 2013
IBC Conference

© 2013 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA

Agenda

 Trends that Changed the Telecom Market

– Challenges & Expectations from the
Revenue Assurance Department

 Brazil Telecom Market

 Revenue Assurance at VIVO

– Past & Current Challenges and Needs
– Future Challenges and Needs

2
The Trends That Changed The Telecom World

The combination of Smartphones and LTE

 Changed the service consumption
patterns of users
 Changed the underlying technologies
 Resulted in new price plans
 Changed the structure of the revenue
streams within the operator
 Introduced significant risks in leakages
& fraud

3
4G LTE World Coverage

4
Data Traffic Explosion

5
Challenges
 Business Approach & Analytical Capabilities
– How to raise the operational level to business levels?
– How to improve profitability?
– How to enhance the expertise in and knowledge of RA?
– How do I achieve analytical capabilities as part of the RA solution and utilize existing data for
other uses?
 New Arenas (Mobile Money, M2M, Mobile Data, Cloud)
 How to limit exposure to revenue leakage & costs from lost opportunities due to the
increasing number of services and complexity of networks? Real-time Provisioning &
Huge Volumes of Information
– How to adapt the RA operation to handle real-time provisioning and charging?
– How to handle  the  “Data  Traffic  Explosion”?

6
The Need From RA Departments – To  Be  More…

 Be prepared to handle threats and challenges

 Be ready for upcoming technologies and products

 Assess risks of services & products before launch

 Assume more methodical approaches to prevent leakage

 Achieve more using fewer resources

 Align  with  company’s  business  goals
 Include recovery as part of the RA domain
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Brazilian Telecommunication Market
 Current Figures (as of end of 2012)
– Market still under expansion (mainly for Mobile, Broadband, Internet and
Cable TV users)
– 267M Mobile
– 44M Fixed
– 17M Broadband
– 16M Cable TV
– 94M Internet Users
– 3G partially deployed among the country, 4G just started (2013)
 Current Figures for Vivo (as of end of 2012)
– Leader in Mobile Market (around 28% as of 2Q2013), with 76M mobiles,
USD 10B FY Net Income, ARPU BRL 22.6 and MOU 126
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Revenue Assurance At Vivo
Main Challenges
 Innovation in Managing & Expanding RA Controls
– Creating a consistent system for implementing strategy
– Implementing methodological approaches based on risk assessment
– Ensuring that RA-controls are part of the launch cycle & planning of new services
 Key Success Factors
– RA Control Efficiency - actual relevance of the controls and ensured ROI during the
implementation phase. Continuous review of control rules and implementation strategies
– Knowledge & Maturity - key personnel with seniority and in-depth knowledge of Revenue
Assurance
– Partnerships - between RA, IT and Vendor teams for leveraging monetary results
– Control Strategy - establishing a process vs. simply implementing new controls

9
Control Review Process

Lab Development Production

Testing Feasibility Optimization, Automation,
(Process & controls) Pre-implementation Execution

Deliverable: Deliverable: Deliverables:

Control Spec Control Rules, Alarms, Cases,
Owner: RA Preliminary Results Reports, etc.
Owner: RA/ IT Owner: IT

Up to 3 Months Up to 3 Months Ready To Go!

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Control Review Process
 New Products / Technologies
– LTE, Quad Play, Market Aggressiveness (lower margins)
– Shorter time-to-market with increased risks
– New technologies with aggressive schedule for coverage
– Knowledge gap within the company (IT, Engineer, RA, Fraud
Management, etc.)
– New system & network elements adding much more complexity for
existing controls
 Thinking Ahead - Internally
– Improve the relationships between the different areas within the
company
– IT, commercial, regulatory, marketing and other departments
– Improving communications with top management
 Continuous  Review…
– Always revisiting controls/processes with focus on monetary results
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New  “Old”  Concerns…

 Data Services/Products Usage – Surpassing Traditional Voice and

Messaging
– The biggest concerns are in RA and risk areas
– Knowledge & skills in all aspects of all new data services must be quickly
improved and enhanced
– Operators are relaying on vendors
– For domain expertise & experience for assistance
– For adding value
– For reducing risk coverage gaps

12
LTE Challenges
 New Pricing Models
– Do we measure usage correctly?
– Are we applying & charging according to the appropriate policy?
 Complexity Challenges (mix of 2G, 3G and 4G)
– Data is stored in many different locations (such as HLR and HSS)
– Non-uniform network technology coverage - devices need to select and
“jump”  between  technologies…  
 Rollout Challenges
– Integrity of porting data to new network elements
– Understanding and collecting data from new elements
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Who Moved My Cheese?!

 CSPs needs to update RA

priorities according to changing
business models
– New Consumption Patterns
– New Services
– New Products
– New Pricing Models
– New Charging Policies

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Use Case Example – LTE Scenario

 High risk is detected in MM Risk for LTE LOB

 Out-of-bundle in specific data package is identified
by MoneyMap
 Low margins are detected by the Margin Analysis
Module
 Service abuse and fraudulent activities are identified
by FraudView
 Centralized business & financial insights on LTE
service
– Monetary losses (LTE) from all products
– Recommendations and future plans for risk reduction
– Profitability insights of LTE for different segmentations
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THANK YOU!
www.cvidya.com