Revenue Assurance in Telecommunications
Telecommunications marketplaces are maturing and becoming saturated.
This is driving commoditisation of core services, and leading operators
to find improved ways to harvest the maximum revenue value from
their existing subscriber base. At the same time, they are addressing
long overlooked revenue leakage issues, through Revenue
The Revenue Assurance [RA] discipline has traditionally focused
on accurate reconciliation of intercarrier billing and fraud prevention.
It has progressed to include other strategies such as network inventory
assessment and least-cost routing.
Inaccurate data from order entry, billing and network systems combine
to prevent accurate calculation of customer
profitability. For this reason, many revenue assurance solutions
solving data errors at deeper network and OSS
levels, drive accurate information to the CRM level.
The introduction of non-voice services has helped Telcos offset
marginal profits from commoditised voice services. In many instances,
top-line growth is up to 20 percent of total revenue in leading
Non-voice IP services have also heightened the complexity of an
increasingly convergent network and application platform environment.
The rapid expansion of non-voice IP services, network event mediation,
interconnection, billing and other vital revenue management areas
has put enormous pressure on the integrity of the overall revenue
chain, with more risk and opportunity for revenue leakage.
Studies have consistently shown that telecom operators fail to
recognize between 3 to 15 percent of their revenue from voice and
simple data services alone. Revenue leakage estimates of IP services
are much higher.
Whilst some revenue leakage is normal, leakage amounts exceeding
3 percent are considered unacceptable and should be addressed.
With IP services bringing in a much larger share of revenue, it
is imperative that operators adopt a revenue assurance solution
that can detect leakage in a timely fashion and allow for more precise
root cause analysis and resolution.
Revenue Assurance Solutions
Revenue Assurance solutions are moving financial accountability
into the customer management process. According to the Yankee Group
"customer profitability assurance synchronizes CRM, product
promotion and pricing, billing, collection, cash management and
financial analysis in an effort to reduce revenue leakage - a process
that begins before the order is taken".
A typical Revenue Assurance Solution provides a complete, end-to-end
environment that automates all key activities in the revenue management
chain, providing an effective revenue assurance program.
Data Collection - data access engines that can
easily integrate with various network elements and other revenue
management points along the chain to collect the relevant information
without disrupting the performance requirements of the system.
Reporting Configuration - configuration utilities
that allow for flexible, user-driven definitions and rules to:
- Organize data
- Calculate variables
- Define KPI measurements
- Develop analytic models
- Create reports unique to each telecommunications environment
Agile Reporting - capabilities that support the
generation of varied reports for:
- Detailed leakage monitoring and analysis of all the critical
points along the revenue management chain
- Reports on the effectiveness of revenue assurance KPIs
- Models developed to manage AR policies
SAS Revenue Assurance
SAS Revenue Assurance solution is designed to help telecommunications
companies reduce the business risk and costs associated with revenue
leakage with effective monitoring and reporting capabilities. The
strength of SAS's RA solution is is adapatability to support each
operator’s unique situation. It delivers a suite of software
and services that combine data management, analytic and reporting
technologies with a proven, cost-effective, adaptable platform.
Peoplesoft Customer Profitability Management for Communications
PeopleSoft packages Revenue Assurance capability in its Customer
Profitability Management for Communications, a solution combining
CRM, financial management and business analytics. enabling Telcos
to compare revenue and cost for each customer in real time.
Vibrant Solutions HyperAnalytics application captures, processes
and analyses event records across the entire network in near real-time
to prevent fraud, optimize network performance and support CRM initiatives.
Back To Top
More Detail on Telco BI Strategy, Program & Technology
Telco BI Solutions Index | Strategic
Performance Management | Campaign Management
| Cross Sell / Up Sell | Profitability
| Customer Management | Customer
Segmentation | Customer Profitability
| Customer Retention | Call
Accounting | Payment Risk Management
| Price_Plan Optimisation | Revenue
Assurance | Order Management System
| Least Cost Routing