Mobile Revenue Assurance & Fraud Management

Overview

•        5 Year Scenario-based Forecasts

•        Extensive Breakdown of Market Dynamics

•        Exclusive Vendor Matrix for 13 Key Players

Evaluation of RA & FM Market Dynamics. This new study provides an exhaustive assessment of the next generation environment and the ways in which services, technologies and indeed, users' behaviours will impact revenue management in years to come.

In-depth Analysis of the RA & FM Ecosystem. With some 5 billion mobiles in use worldwide, MNOs must adapt in order to maintain ARPU and to battle increasing capex and opex. Readers will gain unique insight from Juniper's strategic recommendations, which will guide operators towards overcoming the challenges of a rapidly evolving environment.  

New Technologies: Challenges & Opportunities for Operators. New technologies mean new revenue; but they also produce more unguarded access points for revenue leakages and more territory for fraudsters. This chapter is a must-read for operators who can learn how best to exploit advanced capabilities to drive traffic growth while simultaneously preventing fraudulent activity.

5-Year, State of the Art Forecast Suite. As the nature of network traffic and attendant revenue models diversifies, so the potential for revenue leakage increases. Juniper offers regional forecasts demonstrating the extent to which both traffic and operator-billed revenues will grow in the coming years; these then form the foundation for scenario-based forecasts for the revenue leakage that will accrue throughout the mobile network.

Readers will additionally benefit from Juniper's current and projected revenues for the size of the revenue assurance and fraud management software licensing market.

Table of Contents

Executive Summary

1. Mobile Revenue Assurance & Fraud Management Overview

1.1 Introduction 23
1.2 Revenue Management Market Overview 25
1.2.1Application Segmentation in the BSS Space 25
Figure 1.1: The Business Support System 26
i. Business Assurance 27
1.2.2 The BSS Transactional Lifecycle 28
Figure 1.2: The Transactional Lifecycle 28
1.3 The Problem Stated: The Threat of Leakage 29
1.3.1 Revenue Assurance 29
Figure 1.3: Switch-to-Bill Process 30
i. Typical leakages 30
Figure 1.4: Characteristics of Revenue Leakages in the Switch-to-Bill Process 31
1.3.2 Mobile Fraud 31
i. Fraud Types 32
Figure 1.5: A Cross-Section of Industry Fraud Terms 33
a. Subscription Fraud 33
- SIM-Cloning 34
b. Interconnect Bypass Fraud 34
- GSM Gateway Fraud 34
Figure 1.6: Legitimate Call vs Bypass Call 35
- International Call Bypass 35
- Refile 35
ii. PRS Fraud 35
iii. Roaming Fraud 35
iv. PABX (Private Area Branch Exchange) Hacking 36
v. Internal Fraud 36
vi. Dealer and Supplier Fraud 36
vii. M2M (Machine to Machine) Fraud 36
viii. Malware and SIM Hijack 37
1.4 The Challenge of the Contemporary Mobile Eco-System 37
Figure 1.7: The Evolution of the Telecom Eco-System 37
1.4.1 Enhanced Internet Connectivity 38
1.4.2 The Advancement and Domination of Smartphones 38
Figure 1.8: Global Smartphone Shipment Volumes (million) over Q12010- Q42011 39
1.4.3 Next-Generation Mobile Interaction 40
Figure 1.9: A More Demanding Consumer 40
1.4.4 Flatlining Revenues, Rising Capex, Rising Opex 40
Figure 1.10: Base Line Analysis of Global Mobile Subscriber Growth, ARPU and Operator-Billed Service Revenues 2011-2016 41
Table 1.1: Base Line Analysis of Global Mobile Subscriber Growth, ARPU and Operator-Billed Service Revenues 2011-2016 41
Figure 1.11: The ‘Nightmare' Scenario: Global MNO Service Revenues vs. Capex/Opex ($bn) 2011-2016 42
Table 1.2: The ‘Nightmare' Scenario: Global MNO Service Revenues vs. Capex/Opex ($bn) 2011-2016 42

2. An Evolving Marketplace for Revenue Assurance

2.1 Next-Generation Leakages 43
2.1.1 New Technologies, New Revenue Streams 44
Figure 2.1: Total NFC Ticketing and Retail Payments Transaction Value ($m) p.a. Split by 8 Key Regions 2011-2016 45
Figure 2.2: NFC Handsets & Interim Solutions in Use (m) Split by 8 Key Regions 2011-2016 45
2.2 Tiered Data Pricing: a Billing Headache? 46
Figure 2.3: Cell-Plan Packages 46
2.3 Integration of Revenue Assurance and Fraud Management Systems 47
2.3.1 Business Assurance 48
2.3.2 Margin Assurance 48
2.4 Formalised Business Perspective 49
2.5 Advancements in Processing and Storage 49
2.5.1 Hardware 50
Figure 2.4: A Typical Data Warehouse Architecture 50
i. Data Processing 50
ii. Data Storage 50
2.5.2 Software 51
2.6 Mobile Security: Managing Risk in a 4G/LTE Environment 51
2.7 Cross-industry Co-operation and Re-Sale 52

3. Market Dynamics: the Hurdles & Drivers of Revenue Assurance

Figure 3.1: Mobile Revenue Assurance and Fraud Management Market Drivers and Hurdles 53
3.1 Market Drivers 54
3.1.1 Growth in Wireless Data Transaction Volume 54
Figure 3.2: Siri Voice Recognition on iPhone 54
i. Tablet devices 55
Figure 3.3: Installed Base of Tablet Devices 2011-2016 (m) 55
3.1.2 Regulation 56
i. Addressing roaming-based Bill Shock 56
a. Case Study: European Union (EU) Regulation 56
ii. NRTRDE (Near-Real Time Roaming Data Exchange) 57
3.1.3 Real-Time Charging and Policy: Self-Service 57
3.2 Market Hurdles 58
3.2.1 Regulatory Compliance 58
i. Sarbanes-Oxley (SOX) Act 58
ii. European Union Data Retention Directive (Directive 2006/24/EC) 59
iii. EU Data Protection Directive 59
iv. Cloud Networks and Compliance Difficulties 60
3.2.2 The Operational Responsibility Gap 60
i. Cross-Organisation 60
ii. Intra-Organisation 61
3.2.3 Lack of Cross-department Collaboration 61
3.2.4 Poor Visibility of Extended Revenue Chain 61
3.2.5 Upsurge in Third Party Involvement 62
3.2.6 Lack of Prioritisation in the Business Model 62
i. Tier 2/3 Mobile Network Operators 62
3.2.7 Lack of Skilled Professionals 63
3.2.8 Subjectivity, Consistency and Integrity of Intelligence 63
3.2.9 High Data Volume 64
3.2.10 High TCO (Total Cost of Ownership) 64
3.2.11 Limited Root-cause Analysis and Real-Time Capabilities 65
3.2.12 Need for Technology Agnostic Solutions 65
3.3 System Benefits 66
Figure 3.4: The Benefits of Revenue Assurance/Fraud Management Systems 66

4. Business Strategies and Processes

4.1 Introduction 69
Figure 4.1: Business Model 69
4.1.1 Ensuring Effective Business Assurance 71
4.2 System Objectives 71
4.2.1 Revenue Assurance 72
4.2.2 Fraud Management 72
4.3 Optimising the Administrative Structure 72
4.3.1 Educating the RA/FM Teams 73
4.4 Optimising the Business Processes 73
Figure 4.2: The Business Process 74
4.4.1 Leakage Prevention 74
i. Revenue Assurance 75
ii. Fraud Management 75
4.4.2 Reactive Processes 75
4.5 Optimising Infrastructure for Revenue Assurance 76
4.5.1 Hardware 76
4.5.2 Software 76
i. Interface 77
Figure 4.3: Examples of a Dashboard 77
Figure: 4.4 Example of a Subscription Fraud Match Report 78
4.6 Implementation Solutions 78
4.6.1 Managed Services 79
4.6.2 SaaS (Software as Service) 79
i. Cloud-delivery model 80
4.6.3 Consultancy 80

5. Market Forecasts

5.1 Introduction 81
5.2 Methodology 81
5.2.1 Geographical Splits 81
5.2.2 Methodology and Assumptions 82
Figure 5.1: Methodology for Determining the Value of Revenue Assurance & Fraud Management 82
5.3 Growth of Mobile Data Market 84
5.3.1 Operator-Billed Service Revenues 84
Figure 5.2: Total Operator-Billed Services Revenues ($bn) Split by 8 Key Regions 2011-2016 84
Table 5.1: Total Operator-Billed Services Revenues ($bn) Split by 8 Key Regions 2011-2016 85
i. Operator-Billed Voice Revenues 85
Figure 5.3: Total Operator-Billed Voice Revenues ($bn) Split by 8 Key Regions 2011-2016 86
Table 5.2: Total Operator-Billed Voice Revenues ($bn) Split by 8 Key Regions 2011-2016 86
ii. Operator-Billed Data Revenues 86
Figure 5.4: Total Operator-Billed Data Revenues ($bn) Split by 8 Key Regions 2011-2016 87
Table 5.3: Total Operator-Billed Data Revenues ($bn) Split by 8 Key Regions 2011-2016 87
5.3.2 Total Data Traffic through the Cellular Network 87
Figure 5.5: Total Data Traffic through the Cellular Network (PB/Annum) Split by 8 Key Regions 2011-2016 88
Table 5.4: Total Data Traffic through the Cellular Network (PB/Annum) Split by 8 Key Regions 2011-2016 88
5.4 Revenue Leakage: Worst-case Scenario 89
Figure 5.6: Total Operator-Billed Revenue Leakage (%), Worst-case Scenario 2011-2016 90
Table 5.5: Total Operator-Billed Revenue Leakage (%), Worst-case Scenario 2011-2016 90
Figure 5.7: Global Revenue Leakage ($bn) from Operator-Billed Services, Worst-case Scenario Split by 8 Key Regions 2011-2016 91
Table 5.6: Global Revenue Leakage ($bn) from Operator-Billed Services, Worst-case Scenario Split by 8 Key Regions 2011-2016 91
5.5 Revenue Leakage: Best-Case Scenario 91
Figure 5.8: Total Operator-Billed Revenue Leakage (%), Best-case Scenario Split by 8 Key Regions 2011-2016 93
Table 5.7: Total Operator-Billed Revenue Leakage (%) Best-case Scenario Split by 8 Key Regions 2011-2016 94
Figure 5.9: Total Operator-Billed Revenue Leakage ($bn), Best-case Scenario Split by 8 Key Regions 2011-2016 94
Table 5.8: Total Operator-Billed Revenue Leakage ($bn), Best-case Scenario Split by 8 Key Regions 2011-2016 95
5.6 Revenue Savings Accrued by RA and FM Systems 95
Figure 5.10: Revenue Leakage by Scenario (Sbn) 2011-2016 95
Table 5.9: Revenue Leakage by Scenario and Implied Annual/Cumulative Leakage Reduction under Best-case Scenario ($bn) 2011-2016 96
5.7 Revenue Assurance & Fraud Management Licensing and Services 97
Figure 5.11: Value of the RA and FM Software Licensing & Services ($m) Split by 8 Key Regions 2011-2016 97
Table 5.10: Value of RA and FM Software Licensing & Services ($m) Split by 8 Key Regions 2011-2016 97

6. Vendor Strategies

6.1 Introduction 99
6.2 Vendor Analysis 100
6.2.1 Vendor Assessment Methodology 100
Table 6.1: Vendor Capability Assessment Criteria 100
6.2.2 Limitations and Interpretation 100
6.2.3 Positioning Matrix Results 101
Figure 6.1: Mobile RA and Fraud Management Vendor Positioning Matrix 101
6.2.4 Vendor Groupings 102
i. Summary 102
ii. On Track Vendors 102
iii. Exceeding Expectations Vendors 103
iv. Further Potential Vendors 103
6.2.5 Strategy Conclusions - Corporate Activity 104
6.3 Amdocs Limited 104
i. Corporate Profile 104
ii. Geographic Spread 105
iii. Key Clients & Strategic Partnerships 106
iv. Products and Services 108
v. Juniper's View: Key Strengths and Strategic Development Opportunities 109
6.4 Connectiva Systems 110
i. Corporate Profile 110
ii. Geographic Spread 110
iii. Key Clients & Strategic Partnerships 110
iv. Products and Services 111
v. Juniper's View: Key Strengths and Strategic Development Opportunities 111
6.5 CSG International 112
i. Corporate Profile 112
ii. Geographic Spread 112
iii. Key Clients & Strategic Partnerships 113
iv. Products and Services 114
v. Juniper's View: Key Strengths and Strategic Development Opportunities 115
6.6 cVidya 116
i. Corporate Profile 116
ii. Geographic Spread 116
iii. Key Clients & Strategic Partnerships 116
iv. Products and Services 117
Figure 6.2: cVidya Iris - Integrated Revenue Intelligence Solution Portfolio 117
Figure 6.3: cVidya MoneyMap Solution 118
v. Juniper's View: Key Strengths and Strategic Development Opportunities 120
6.7 HP 121
i. Corporate Profile 121
ii. Geographic Spread 121
iii. Key Clients & Strategic Partnerships 122
iv. Products and Services 123
v. Juniper's View: Key Strengths and Strategic Development Opportunities 125
6.8 IBM 125
i. Corporate Profile 125
ii. Geographic Spread 126
iii. Key Clients & Strategic Partnerships 126
iv. Products and Services 127
v. Juniper's View: Key Strengths and Strategic Development Opportunities 128
6.9 McAfee 128
i. Corporate Profile 128
ii. Geographic Spread 128
iii. Key Clients & Strategic Partnerships 129
iv. Products and Services 130
v. Juniper's View: Key Strengths and Strategic Development Opportunities 131
6.10 NetCracker 131
i. Corporate Profile 131
ii. Geographic Spread 131
iii. Key Clients & Strategic Partnerships 132
iv. Products and Services 133
v. Juniper's View: Key Strengths and Strategic Development Opportunities 134
6.11 Subex Limited 134
i. Corporate Profile 134
ii. Geographic Spread 134
iii. Key Clients & Strategic Partnerships 135
iv. Products and Services 135
Figure 6.5: Subex's Business Optimisation Solution 135
v. Juniper's View: Key Strengths and Strategic Development Opportunities 137
6.12 Syniverse 137
i. Corporate Profile 137
ii. Geographic Spread 138
iii. Key Clients & Strategic Partnerships 138
iv. Products and Services 139
v. Juniper's View: Key Strengths and Strategic Development Opportunities 140
6.13 TEOCO Corporation 140
i. Corporate Profile 140
ii. Geographic Spread 141
iii. Key Clients & Strategic Partnerships 141
iv. Products and Services 142
- Revenue Assurance 142
- Customer Assurance 142
- Margin Assurance 143
v. Juniper's View: Key Strengths and Strategic Development Opportunities 143
6.14 WeDo Technologies 144
i. Corporate Profile 144
ii. Geographic Spread 144
iii. Key Clients & Strategic Partnerships 145
iv. Products and Services 146
Figure 6.6: RAID: FMS Approach 147
v. Juniper's View: Key Strengths and Strategic Development Opportunities 148
6.15 Xintec 148
i. Corporate Profile 148
ii. Geographic Spread 149
iii. Key Clients & Strategic Partnerships 149
iv. Products and Services 150
Figure 6.7: FMSlite Infrastructure 151
v. Juniper's View: Key Strengths and Strategic Development Opportunities 152

Companies Referenced

Companies Interviewed

CSG International, cVidya, HP, McAfee, Subex Limited, WeDo Technologies, Xintec

Vendors Profiled

Amdocs, Connectiva Systems, IBM, Netcracker, Syniverse, TEOCO

Companies Mentioned

Airtel, Apple, AT&T, Barclays, Billing & OSS World, Facebook, Google, Hutchinson 3G, JD Weatherspoons, JRA, Leon Restaurants, McDonald's, Microsoft, MTN, Nokia, O2, Oracle, Orange, Premier Inns, Radisson Hotels, RIM, Samsung, Starbucks, Subex, Three, T-Mobile, Vodafone, YouTube

Extra Info

‡ 8 key regions includes:

North America, Latin America, Western Europe, Central & Eastern Europe, Far East & China, Indian Subcontinent, Rest of Asia Pacific and Africa & Middle East.