Menu
Mobile operators 'losing billions' through poor fraud tackling processes

Mobile operators 'losing billions' through poor fraud tackling processes

Juniper paper calls for better technology to be used

The mobile telecoms industry lost more than $58 billion last year - over six percent of global revenues - due to inadequate fraud management and revenue assurance processes, a research paper has claimed.

The grim predictions of a Juniper Research report suggest mobile firms face a "nightmare scenario" as a result of operators failing to implement any remedial measures over the next five years, and the scale of losses rising five-fold by 2016.

Unless companies act to invest in technology to protect their revenues, says Juniper, they will lose even more when 4G mobile technology starts to take hold in the market.

The report, "Mobile Revenue Assurance & Fraud Management: Business Strategies & Forecasts 2012-2016", finds that as operators have been obliged to integrate an ever-expanding array of devices and to simultaneously manage a surge in cellular network traffic, billing systems have failed to keep pace.

As a result, says Juniper, operators are increasingly unable to accurately or efficiently capture the large volume of transactions that occur on their network. The complexity has magnified the scale of revenue loss, resulting in bad debts and a greater opportunity for fraud.

With sustained fraud management and revenue assurance technology investment, says the report, "leakages" would decline to 4 percent of revenue in 2016, representing a net reduction of nearly $15 billion per annum compared with 2011.

Windsor Holden, the report co-author, said: "As the industry moves more aggressively into 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.

"Despite their initial costs, revenue assurance and fraud management systems demonstrate a strong case for return on investment."

Meanwhile, roll-outs of 4G technology in the UK are being stalled by potential legal disputes between operators and industry watchdogs.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments