Revenue Leakage Becomes Major Cause of Revenue Loss for Mobile Operators, Reaching $5.6bn in 2005

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A new report from Juniper Research, “Revenue Assurance: Identifying Leakage & Implementing Solutions”, reveals that applications and content services are increasingly bringing new forms of revenue leakage to network operators.

A new report from Juniper Research, “Revenue Assurance: Identifying Leakage & Implementing Solutions”, reveals that applications and content services are increasingly bringing new forms of revenue leakage to network operators. The Revenue Assurance programmes built to deal with traditional forms of leakage from areas such as fraud, billing and roaming, are now inadequate to deal with newer forms of leakage such as those arising from data services, implementing 3rd party services, IP, and premium rate services.

The research indicates that several new factors are causing revenue leakage to grow, including:

  •     The introduction of new technologies such as 3G, IMS (IP Multimedia Subsystems);
  •     Different operating systems and network elements;
  •     New products and tariffs;
  •     Sophisticated fraud methods with new services such as premium rate services etc.

“Revenue leakages can take place throughout the revenue life cycle, starting with product development and sales, to provisioning of customers, network operation through to invoicing,” says Arun Dehiri, Analyst at Juniper Research. “The drip, drip, drip of revenue leakage can build up to look more like a flood if operators fail to instill RA throughout their organisation.”

Stemming the Flow

Juniper Research has developed a 5 step framework which starts with the operator orientating itself by evaluating its market positioning, and moves to identifying and quantifying leakages, and then to selecting and implementing solutions frameworks. This holistic framework is in part based on best practices employed by several operators, consultancies and vendors that Juniper Research has conducted interviews with.

“Preventing and reducing revenue leakage is not achievable by simply purchasing software solutions, operators need to adopt a holistic, pragmatic framework when introducing a RA programme. This is crucial if operators are to achieve a payback. Poorly implemented RA programmes can cost operators more than the original revenue leakage if they are not careful,” Arun Dehiri concludes.

A free white paper and further details of the new study ‘Revenue Assurance: Identifying Leakage & Implementing Solutions’ can be obtained at http://www.juniperresearch.com, or via Michele Ince at Telephone +44 (0) 1256 830002.

Juniper Research provides analytical services to the global hi-tech communications sector, providing analyst reports, consultancy and industry surveys.

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Tony Crabtree