Mobile Industry Lost over $58 billion in Revenue in 2011 due to Inadequate Billing Systems
Hampshire, UK - 28th March: A new report from Juniper Research finds that
the mobile telecoms industry lost more than $58 billion last year - over 6% of global
revenues - due to inadequate FM (Fraud Management) and RA (Revenue Assurance) processes.
The report suggests that under a
‘nightmare scenario' whereby operators fail to implement any remedial measures over the next five years, the scale of losses
could rise five-fold by 2016.
The report, ‘Mobile Revenue Assurance &
Fraud Management: Business Strategies & Forecasts 2012-2016,' finds that as
operators have been obliged to integrate an ever-expanding array of devices and to simultaneously manage a surge in
cellular network traffic, billing systems have failed to keep pace. As a
result, they are increasingly unable to accurately or efficiently capture the
large volume of transactions that occur on the network. The complexity has
magnified the scale of revenue loss, resulting in bad debts and a greater
opportunity for fraud.
connectivity through RA, FM investment
the report recommends that operators can
minimise the outflows resulting from next-generation connectivity by implementing
automated system solutions that provide end-to-end visibility of the revenue
chain. With sustained investment, the report finds that leakage will decline to
4% of revenue in 2016, representing a net reduction of nearly $15 billion per
annum compared with 2011.
to report co-author Dr Windsor Holden: ‘As the industry moves more aggressively
into a 4G/LTE environment, telcos risk undermining any revenue actually earned
from value-added services by continuing to not invest in appropriate business
support systems. Despite their initial costs, RA and FM systems demonstrate a
strong case for return on investment.'
key findings from the report include:
leakages will continue to be relatively higher in developing regions, particularly
in Africa & the Middle East.
are exploiting a single repository of data to reduce TCO (Total Cost of Ownership)
and are integrating a number of complementary applications as the industry
moves towards Business Assurance.
The ‘Assured Revenue' whitepaper is available to
download from the Juniper website together with further details of the full report.
Research provides research and analytical services to the global hi-tech communications
sector, providing consultancy, analyst reports and industry commentary.
further details please contact Jess Hanslip, Press Relations