55.9%
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55.9%
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Misinterpreting The Data

In my last blog, I made fun at the annual operator attitudes survey conducted by Analysys on behalf of Subex Azure. But sometimes I wonder why I bother. Why make fun when the experts do such a good job themselves. Take a look at this article “explaining” the results. It seems that revenue loss has increased is “because every time new services come along they bring with them a whole new set of revenue assurance challenges” .

Erm, excuse me? I mean, of course new services bring new problems. But then again, they mostly earn bugger all in revenues. Ignore the marketing hype – boring old voice products still represent a huge share of revenues for almost all telcos. If revenue leakage is as high as is claimed, then it must be because nobody has done anything much about fixing the leaks for boring old products. Blaming high estimates of revenue leakage on new products is daft. If the leakage was due to new products, you would have to believe that they all suffered extraordinary levels of leakage relative to the revenues they generate. Which might sound plausible except that the basics of revenue assurance for new products really are little different to the basics for boring old products. Check that you generate some data when a sale is made. Check the data is actually right. Check it gets from one place to another. Check that you take orders correctly and actually put them into service correctly. Check that what seems to be happening in the network is consistent with what you have in the billing system. Check that the price you told everyone is the price you set. All very boring. You can do it manually, if you have time and can be bothered. For several hundred % of leakage, it would be worth doing simple manual checks on tiny samples, and you would very quickly find things wrong. But then you would not need multi-million pound software tools, would you? ;)

Eric Priezkalns
Eric Priezkalnshttp://revenueprotect.com

During his career, Eric has been a Director of Risk Management for a national telco, the Chief Executive of the Risk & Assurance Group, a Chief Marketing Officer for a software business, a consultant, a public speaker and the publisher of Commsrisk since its launch in 2006. Look here for more about the history of Commsrisk and the role played by Eric.

The comms providers that Eric has worked for include Qatar Telecom, Cable & Wireless, T‑Mobile, Sky and Worldcom. In addition to his proficiency at speaking about the current scamdemic, Eric is also a qualified chartered accountant and a subject matter expert in consumer protection, enterprise risk management, fraud prevention, data integrity and billing accuracy. Eric was the lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He can be reached through the contact form on this website.

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