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

BT, Telefónica confirm preliminary talks over O2 sale in the UK BT, Telefónica confirm preliminary talks over O2 sale in the UK BT and Telefónica have confirmed they are discussing a potential deal that would see the UK incumbent take back ownership of the mobile company it sold to its Spanish rival in 2005. More detail
Telecom Italia eyes Oi, Metroweb deals, raises cash with Brazil towers sale Telecom Italia eyes Oi, Metroweb deals, raises cash with Brazil towers sale Telecom Italia is reviewing a possible deal with Brazilian operator Oi and formalised its interest in local fibre provider Metroweb, the operator has announced. More detail
European telcos launch Make the Net Work initiative European telcos launch Make the Net Work initiative Europe’s leading telcos have unveiled a new initiative called Make the Net Work as they to look to drive the debate around reform of the telecoms market. More detail
Uganda latest destination for Ericsson, MTN Group m-commerce partnership Uganda latest destination for Ericsson, MTN Group m-commerce partnership Ericsson has announced that MTN Group’s Ugandan business is the latest to deploy its Converged Wallet platform.  More detail
Telefónica partners with Equinix to offer enterprise hybrid computing, cloud solutions Telefónica partners with Equinix to offer enterprise hybrid computing, cloud solutions Telefónica has announced a partnership with cloud interconnection provider Equinix to offer hybrid computing and cloud solutions to enterprises. 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.