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Rising to the Challenge
A quiet revolution of sorts is sweeping the back-offices
of telecoms service providers of all types around the
world believe Adam Boone and Mark Nicholson.
This transformation does not have seek to ensure that the revenue In each case, concerns in 2007
the visible flash or publicity pizzazz chain has high integrity, that all were at least double the prior
of three-screen convergence, due revenue is captured and no years’ levels, which all had been
quadruple-play bundles or mobile resources are consumed without consistently low. In other words,
TV services. Yet it will have a direct generating the appropriate revenues. 2007 was the year that the
impact on the success of these more In some cases, this domain pending introduction of content-
evident innovations in the long run. encompasses cost management based services, network and
techniques and systems which service convergence and the
The back-office change has to mobile operators in particular need for increased service agility
do with how service providers are beginning to embrace. began to seem increasingly –
think about and address the and perhaps worryingly – real.
issues of revenue assurance, Telecoms analyst firm Analysys-
fraud management and related Mason has conducted an annual Another segment of the Analysys-
areas. There is mounting evidence survey of service providers around Mason findings backs up this
that the approach to revenue the world to assess their attitudes conclusion: service providers are
management is becoming more toward revenue management. asked to what extent various areas
proactive and integral to the Underwritten by Subex, every year of potential revenue leakage or
planning process for new products the survey: ‘Operator Attitudes to cost overruns are considered when
and services. This is in contrast to Revenue Management’ includes they plan new products for launch.
previously common approaches approximately 100 service The responses are weighted based
to revenue management which providers spread across every on the relative importance of each
took a reactive stance in which geography and market segment. potential loss cause and the results
correcting revenue leakage was an used to create an index which
afterthought, if addressed at all. As usual, the 2007 survey asked specifies what proportion of revenue
their revenue assurance personnel leakage service providers consider
There also is evidence that mobile to assess which issues they when planning new products.
operators have unique challenges saw as being top of mind in the
when it comes to addressing coming three years. Surprisingly From 2005 to 2006, the index took
revenue leakage issues and that there were indications of a sea a large leap: from just over 50% of
these challenges will shape the change in the levels of concern service providers, to approximately
role revenue management plays about several important issues: 75% of service providers addressing
in the evolving mobile service revenue leakage at the product
provider business model. Introduction of new planning stage. The index stayed at
products and services about the same higher level in 2007.
Eye on the Future
Fixed-mobile convergence Together, these data points can
Revenue assurance, fraud be interpreted to mean revenue
management and related areas Introduction of broadband and/or 3G assurance is now being viewed
are often loosely grouped in the in a more proactive light and
category of revenue management. Managing payments for content- correcting revenue leakage is an
At a high-level, these disciplines providers and application-providers increasingly important planning
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