Every year, communication service providers face billions of dollars in lost revenue. Service theft, human oversight, and provisioning or service catalog errors affect providers in every region — even if you don’t realize it.
In North America alone, the Communications Fraud Control Association (CFCA) estimates that service providers incur more than $1billion in lost revenue from fraud each year, with small to mid-sized operators most at risk. TM Forum estimates average revenue loss to be 1.5% of a company’s revenues, but leakage is likely to be greater when data discrepancies and logic errors are lost in multiple layers of back-end processes.
Even when day-to-day operations appear to be running smoothly, there can be misalignments between systems, manual processes, or even fraudulent incidents that create revenue leakage. Furthermore, not everyone knows how to measure losses — a recent TM Forum survey showed only half of service providers measure and report loss prevention at all.
The gap between the amount earned and the expenditure required to generate profits can make all the difference in running a successful business. For service providers, protecting existing profits by eliminating revenue leaks is just as essential as creating opportunities to generate new revenue streams.
A lack of understanding about end-to-end business processes is a problem when multiple systems, vendors, and even technologies are involved in the service fulfilment chain. This kind of network complexity will only increase as service providers move towards faster and extended services that improve subscriber quality of experience, such as IoT and M2M services, WiFi-related offerings, and value-added extras.
How can you protect your bottom line in this complex environment?
Secure and Maximize Revenue with Service Provider-Grade Revenue Assurance Processes
The key to revenue assurance is to identify areas that will either generate or save money for your business. Implementing secure, end-to-end processes stops revenue leakage, avoids future issues, and enables an increased focus on proactive operations and strategies to generate revenue.
The following 5 approaches will help you achieve greater revenue assurance:
- Efficient Processes
- Standards Compliance
- Strong Security
- Replacing Legacy Systems
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