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Mobile industry lost $58 billion last year due to lack of proper billing

Telecom Lead India: Juniper said the global mobile
industry lost more than $58 billion in 2011 – over 6 percent of global revenues
– due to lack of Fraud Management and Revenue Assurance processes. With
sustained investment, the leakage will decline to 4 percent of revenue in 2016,
representing a net reduction of nearly $15 billion per annum compared with
2011.

 

Revenue leakages will continue to be relatively higher in
developing regions, particularly in Africa & the Middle East.

 

Solutions are exploiting a single repository of data to
reduce total cost of ownership) and are integrating a number of complementary
applications as the industry moves towards Business Assurance.

 

Telecom operator revenue leakage to go up due to shift to
mobile commerce

 

Recently, KPMG said 94 percent of mobile operators surveyed
expect revenue leakage to increase due to emerging technology trends including
the shift to mobile commerce services and other transformative technologies.

 

According to Juniper, if mobile operators fail to
implement remedial measures over the next five years, the scale of losses could
increase five-fold by 2016.

 

Operators are unable to accurately 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.

 

Juniper said operators can minimize outflows resulting
from connectivity by implementing automated system solutions.

 

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,” said Windsor Holden, report co-author.

 

editor@telecomlead.com

 

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