• Industry: Telecommunications
  • Type: Survey report
  • Date: 3/28/2012

Telecommunications providers are sharpening up their operations 

A growing number of Revenue Assurance functions are becoming self-funding as telecommunications companies develop more sophisticated approaches to preventing and detecting leaks. Companies from Asia Pacific are least likely to have a self-funding team.

"In my role as a CFO at BT Global Services I would expect that, at the very least, my RA and Fraud Management team would be self funding, directly improving my EBITDA and creating quantifiable value to my organization."

- Hugo Eales, CFO, BT Global Services

Most of the organizations involved in the survey have strong standard operating procedures, although far fewer have procedures for escalation matrices, turnaround times for closure and issue aging. As Romal Shetty, Head of Telecommunications, KPMG in India notes: “Without a proper escalation matrix, any issues raised may fail to reach the right levels of management. The lack of a turnaround time for closing issues could limit the ability to recover revenue.”

And while a majority of companies involved in the survey use some kind of revenue assurance/fraud management tool, over a third say they’re not satisfied with its performance. To ensure a good return for the large sums invested in automation, a rigorous evaluation process is needed to agree requirements and ensure that vendors meet objectives.

Many telecommunications providers appear unwilling to take ultimate responsibility for revenue assurance at the very highest levels, as less than half of the respondents link the function’s performance to management incentives. And with a lack of common standards for measuring leakages, it’s hard to compare the effectiveness of prevention and identification activity between different products.

52 percent of organizations in the survey do not link revenue assurance performance with senior management incentives

“If we want revenue assurance to be taken seriously at the very highest levels, we must be prepared to incentivize senior executives for targets such as leakage prevention, detection and recovery.”

- Carl Geppert, Global Telecommunications & Advisory Lead, KPMG in the US


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