The mobile telecoms industry lost more than €43.5 billion last year due to inadequate fraud management and revenue assurance processes, according to an analyst firm.

A new Juniper Research report claims billing systems have failed to keep up as operators have integrated an ever-expanding array of devices and, simultaneously, managed a surge in cellular network traffic.

Report co-author Dr Windsor Holden said the situation would become even more serious as we enter a 4G/LTE environment.

“Telcos risk undermining any revenue actually earned from value-added services by continuing to not invest in appropriate business support systems,” he said.

The €43.5 billion figure, which is equivalent to over six percent of global revenues, could increase five fold if operators fail to implement any remedial measures over the next five years, the report predicts.

Such measures should include implementing automated system solutions that provide end-to-end visibility of the revenue chain.

As a result, the amount “lost” could decline to four percent of revenue in 2016, representing a net reduction of nearly €11 billion per annum compared with 2011.

However, “sustained investment” was needed.

Although initial costs are viewed as prohibitive by some, Holden said revenue assurance and fraud management systems demonstrate “a strong case for return on investment”.

More News

Deutsche Telekom smarthome platform to debut in Austria, new partners announced Deutsche Telekom smarthome platform to debut in Austria, new partners announced Deutsche Telekom has unveiled five new partners for its Qivicon smart home platform, including the first outside of Germany. More detail
Standard & Poor's warns European telcos off aggressive shareholder returns, predicts growth Standard & Poor's warns European telcos off aggressive shareholder returns, predicts growth Standard & Poor's said European telcos should not jeopardise emerging revenue growth by offering shareholders excessive returns. More detail
Deutsche Telekom upgrades mobile plans, launches family offer Deutsche Telekom upgrades mobile plans, launches family offer Deutsche Telekom has unveiled a range of new offers and services for the annual IFA consumer electronics show. More detail
Consumers continue to shun traditional TV, streaming services gain popularity Consumers continue to shun traditional TV, streaming services gain popularity One in four people have cut or shaved their traditional TV service in the past year, according to Ericsson’s annual look into the TV and media space. More detail
Vodafone maintains position as top M2M service provider Vodafone maintains position as top M2M service provider Vodafone has once again topped a list of the world’s leading global operators in the field of M2M/IoT. More detail
    

This website uses cookies to improve your experience. Using our website, you agree to our use of cookies

Learn more

I understand

About cookies

This website uses cookies. By using this website and agreeing to this policy, you consent to SJP Business Media's use of cookies in accordance with the terms of this policy.

Cookies are files sent by web servers to web browsers, and stored by the web browsers.

The information is then sent back to the server each time the browser requests a page from the server. This enables a web server to identify and track web browsers.

There are two main kinds of cookies: session cookies and persistent cookies. Session cookies are deleted from your computer when you close your browser, whereas persistent cookies remain stored on your computer until deleted, or until they reach their expiry date.

Refusing cookies

Most browsers allow you to refuse to accept cookies.

In Internet Explorer, you can refuse all cookies by clicking “Tools”, “Internet Options”, “Privacy”, and selecting “Block all cookies” using the sliding selector.

In Firefox, you can adjust your cookies settings by clicking “Tools”, “Options” and “Privacy”.

Blocking cookies will have a negative impact upon the usability of some websites.

Credit

This document was created using a Contractology template available at http://www.freenetlaw.com.