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Revenue leakage in the telecoms market

 

Inês Ferreira

Abstract

 

Inês Ferreira looks at revenue leakage in the telecoms market, and why the use of a dedicated software tool results in greater operator earnings, and more accurate customer service results.

Due to the complexity involved in the business, revenue leakage, either through deliberate or unintentional means, is a reality.

 

Dealing with roaming

Roaming is a very important service competitive operators must offer, not only to serve customer needs, but also to earn associated revenues.

On average, roaming revenues represent more than 10% of the total operator revenue.

Roaming revenue, however, is very difficult to manage, due to the dynamic evolution of roaming contracts.

Hundreds of agreements, with documentation are required to facilitate roaming.

With each new service launched, such as MMS, Roaming Prepaid, Data Services, and Roaming Services, technical complexities are inherent due to the high volume of data operators must manage. TAP files with roaming partners are changed at least monthly, and sometimes daily, in compliance with GSM Association.

Roaming does provide operators with a high level of revenue.

Nonetheless, due to the complexity involved in the information transfer required when providing roaming services, revenue leakage in roaming services, either through deliberate or unintentional means, is a reality telecom operators must address.

The complex roaming business process contributes greatly to revenue leakage in roaming service.

Roaming fraud currently accounts for 24% of the total fraud incurred by operators (GSM Association).

One TAP can represent €1,000, and unrecovered files can result in even greater losses. Incorrectly rated, incomplete or duplicated records, as well as TAP file delays can all result in a large cost to the operator.

Tests, incongruence, inefficient processes, settlement inconsistencies, late payments, incorrect invoices and customer complaints also account for revenue lost in roaming services.

Roaming margins, already hard pressed by intense competition, must ensure the roaming business process is accurate and up-to-date to protect the roaming revenue stream.

In the roaming business, assuring the correct billing of all transactions and services provided, according to established agreements, assures both high levels of process efficiency and minimum losses due to bad debt and fraud.

Using a dedicated software tool to complete this process results in greater operator earnings, and more accurate customer service results.

 

What is the true value in using dedicated software tools?

 

Using automated systems to implement frequent and systematic processes, as well as effective management mechanisms, will detect revenue leakage and therefore achieve high efficiency in roaming business practices.

This efficiency will directly be translated into higher profitability for the operator.



Roaming revenue assurance

 

Automated systems should have an efficient, continuous and autonomous control of roaming business revenue flow, and should validate inbound and outbound Roaming services, settlement, TAP and RAP, and control Clearing House data interchange.

A revenue chain approach, detecting and preventing events loss (CDR’s) along the entire revenue chain of roaming business, and validating data integrity between different kinds of OSS/BSS systems, is essential.

It is also important to have a continuous and autonomous management of the roaming business life cycle, and control the roaming business workflow.

The positive impact, inherent in the implementation of a dedicated solution, can be measured with the following benefits:

Streamline roaming administration business processes with efficient management of roaming agreements, TAP, RAP, HUR and tests.

Reduce problems with CDR’s and TAP’s generation, and reduce integration problems between platforms.

Eliminate fraud revenue leakages.

Increase efficiency, customer satisfaction, and service quality.

Notify management of potential problems within the system.

Optimise resources and explore the full potential of the roaming business.



If you implement a dedicated software solution to monitor your roaming business process, your roaming solution results will be greater because of it, and sometimes the cheapest becomes the most expensive.


Do you really control your roaming quality of service?


In the last few years, operators have invested in opening as many roaming agreements as possible, in order to offer more and innovative services and obtain stronger revenues.

At the moment, thanks to roaming service, almost everyone can use their GSM mobile phone in different countries, as they would at home.

 

Roaming without doubt is the service that provides total mobility in this global world.

But sometimes the reality is a little bit different. Have you tried to make a roaming call but the connection could not be established?

 

Have you made an international call that ended with a foreign announcement?

Have you already had problems accessing your voice mail?

 

Or even perhaps there are times when you would have liked to answer the phone but you couldn’t see the calling number?

To take full advantage of all the benefits of global mobility, it is necessary to use the roaming service which provides at least the same quality of service you use for your mobile phone in your home country.

 

Operators know this and in order to check if the roaming service provided from both sides is working properly, traffic forecasts (roaming tests) are performed by both parties involved in the roaming agreement.

 

However, in spite of operators’ efforts in testing roaming services and subsequently offering the minimum quality of service, customers are quite frequently facing a number of quality of service problems.

 

Over the last few years, a lot of worrying reports from customers have been registered related to this matter.

 

And of course customer dissatisfaction leads to loss of revenues.


Customer complaints
 

The following are just some of the usual problems we hear about:
 

Roamers successful calls completion rates vary greatly. Sometimes all calls initiated can be blocked or terminated with an announcement from a foreign network.

Customers or Roamers are unable to dial International numbers for a similar reasons or the call success ratio is low.

Difficulty in accessing personal Voice Mail

The quality of voice is very poor (long delays, audibility only in one direction, etc.)

 

CLI presentation is occasional. CLI may have the wrong address and/or format and depends on how the calls are being terminated into the network as a result of the routing method previously described.

Fax and Data transmission sessions are being interrupted due to poor service quality, or they may even be completely blocked.

 

Such problems concern speech quality, data and fax services, and are caused mainly by minimal cost call routing methods used by various operators and International transit service providers.

 

These routing mechanisms are often unstable where the quality of services has not been thoroughly tested for making long distance calls.

 

Sometimes new and unreliable transportation techniques are involved.

 

It is necessary for operators not to forget these situations.

 

Conclusion

 

Customers need good service and operators need to make their customers happy.

 

Problems can be avoided when:

 

Operators make constantly dedicated tests concerning international traffic (not only the GSM mandatory tests).

Operators’ route calls are only made through reliable International Carriers who are able to guarantee high service quality.

Operators can implement more specific SLA, (with precise quality of service parameters values), with international carriers in order to ensure end-to-end service quality while roaming.

 

 

Inês Ferreira is currently working as an Account Manager for WeDo Soft’s International Sales Team

 

Source: Getting Paid (Volume 27, No 6, 2006)

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