Australia

Details

  • Service: Advisory, Management Consulting, IT Advisory
  • Industry: Technology, Telecommunications
  • Type: Press release
  • Date: 4/04/2012

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Emerging technology expected to increase revenue leakage among telecom providers 

4 April 2012 - The coming data explosion including the shift to mobile commerce (m-commerce) services and other transformative technologies is expected to have a big impact on revenue leakage among the world’s major telecommunications companies, according to a survey from KPMG International.
  • 75% of respondents in Asia Pacific (including Australia) had losses of less than 1% compared with other regions at 50% Middle East / Africa, and 66% Europe and Americas
  • 94 percent of operators expect revenue leakage to increase and half believe it will be significant
  • New transformational projects (such as new technology, network and billing system migration), poor system integration and fraud are the top three sources of revenue leakage.
  • Australian industry trends that will drive this include the increased complexity through convergence and the roll out of Next Generation networks and LTE
  • Revenue assurance role urged to have broader scope and board-level presence - only 21 percent currently report directly to the board
  • A broader focus across the full revenue lifecycle of all customer segments is required to ensure the maximum delivery of value to the business

 

The coming data explosion including the shift to mobile commerce (m-commerce) services and other transformative technologies is expected to have a big impact on revenue leakage among the world’s major telecommunications companies, according to a survey from KPMG International. Ninety-four percent of operators surveyed expect revenue leakage to increase as a result of these rapidly emerging technology trends and nearly half believe the impact will be significant.

 

KPMG’s second Global Revenue Assurance (RA) Survey, Entering a New Era – Are new opportunities opening up for revenue assurance functions? is based on a survey of 137 executives from telecommunications companies in 62 countries spanning Asia Pacific – including Australia, Africa and the Middle East, and Europe and Americas.

 

Although Asia Pacific respondents, which included Australian telecommunications companies, agreed with the Global view that Fraud and Revenue leakage will increase significantly in the future, Asia Pacific is the region with the least leakage in the global Revenue Assurance survey.


Seventy-four percent of respondents said that the transformation to m-commerce such as mobile banking is the trend most likely to impact the telecoms industry, followed closely by converged services (71 percent). New independent revenue streams and the associated network and billing systems for these services will be a chief source of leakage according to respondents.

 

“Australian industry trends that will drive this include the increased complexity through convergence and the roll out of Next Generation networks and LTE”, said Peter Mercieca, KPMG’s Asia Pacific Head of Telecommunications and Media.

 

“With the potential increase in the number of partner and third-party relationships through convergence and Value added Services, combined with the focus on margins, the pressure on the revenue assurance function to detect and prevent leakages and recover losses has never been greater,” Mr Mercieca continued. “The benefit of a professional RA function is that losses recovered through Revenue Assurance are usually a direct contribution to EBITDA”.

 

The Role of RA

The survey data also presented a case to broaden the scope of the RA role and extend it across the organisation - sales, marketing, customer service and risk management.  Nearly two-thirds of respondents do not have a cross-functional team set up to assess the scope and extent of revenue leakages.

 

“RA is in an ideal position to look at the entire revenue cycle and identify cost savings and revenue enhancement,” Mr Mercieca stated. “Through data analytics and modelling, RA professionals can make an important contribution to process improvement and the customer experience – a big area of focus for the sector.”

Media enquiries

Kristin Silva

Head of Public Affairs

KPMG in Australia

+61 2 9335 8562, 0411 110 953

ksilva@kpmg.com.au

Avilyn Tan

Communications Manager

KPMG in Australia

+ 61 3 8626 0943, 0428 435 095

avilyntan@kpmg.com.au

 

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Entering a new era for revenue assurance

Entering a new era for revenue assurance
KPMG’s latest Global Revenue Assurance Survey confirms that industry is becoming far more complex, driven by convergence and the rise in m-commerce.