Carina Bark

Revenue Assurance
Swedtel AB
www.swedtel.com

carina.bark@swedtel.com

58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 1

Revenue Assurance

RA Background and Scope of Problem


How big a problem?

World wide Latin America
• Leakages are estimated at an • >23%
average of 5-14% of total
revenues
• Example: • 10
Operator revenue 10 MUSD MUSD
• Between 0,5 and 1,4 MUSD • 2,3
is lost MUSD
lost

Source: Billing Magazine, March 2001 (The Philips Group) Source: SWT

Why do it?
- today’s operator situation

Nearly half of revenue leakage is network related
Debt write-off 16% Technical & CDR
errors 45%
Fraud 14%

Rating errors 10%
Incomplete
Customer Records 15%
Source: Billing Magazine, March 2001 (The Philips Group)

2,3 MUSD lost:
• NW: 1 MUSD
• Info: 0,5 MUSD
58018-02-0025-3 Revenue Assurance 2009-08-14
• Restricted. SWEDTEL AB MUSD
F/BD: 0,8 4

Surveys: Awareness?

World wide Latin America
• 49% of companies have a • < 10%
designated Revenue Assurance
program
• 84% believe revenue leakage is • ?? %
at least 5%.
• 16% of executive managers • ?? %
believe revenue loss is between
10 and 15%

Source: PWC Source: SWT

Swedtel Operator view

Methodology


Operator Production Process Order

Image SalesCustomer
Customer
Service Provider
MI Prod Dev
& Com & Dist Care
Billing
Demand Functionality Ticket Bill

NW Plan Tech. Design Fault CDR
Infrastructure
(NW)
NW
Planning
NW
/ Operator
NW
Development Admin
Instalation
/ Activation
Correction
NW
Operation & Maintenance

Corporate Development
Support IT
processes
HR
Finance
Legal
Administration


Revenue Assurance

RA Definition and Swedtel RA Concept


Creating balance

Revenue
Assurance:
Minimize difference
between usage
value and value of
collected revenue

Usage
value Revenue


Methodology

General procedure
• Identify the gap
• Identify causes
• Identify remedies
• Prioritize (ROI)
• Plug found holes

Usage • Ensure it doesn’t
value Revenue happen again…?


Identify the gap
- comparing what?

Value Choose points
of comparison
BP Pot.
according to
Gap
company maturity!
Q. Pot.
Gap
Used Traditional
Gap Revenue
Billed Assurance
Gap
Collected
M Intel CC Invoicing
M&S Collection
ProdDev NW (O&M) NW (O&M)
NW (I&A)
NW (P&D)

Identify causes
- to whom?

Process
Value
orientation
BP Pot. - identifying
Gap successive
Q. Pot. causes!
Gap
Used
Gap
Billed
Gap
Collected
M Intel CC Invoicing
M&S Collection
NW (I&A)
NW (P&D)

Identify remedies
- doing what?

Process
Value
MI CC Billing
ProdDev
M&S
NW (O&M) orientation
NW (O&M)
Collection
BP Pot. NW (I&A)
NW (P&D) - identifying
Gap successive
Q. Pot. causes!
Remedying erroneous / insufficient / incompatible:
Gap
Used NW HW/SW Bank system
Technology
IT Systems (interface)
Gap
Billed NW Q Ass. Customer
Procedure Gap
Bill distribution payment proc.
Collected
M Intel RA focus Customer pay-
Culture M&SLearning org Billing
CC
ProdDev willingness
NW (I&A) NW (O&M) NW (O&M)
Collection
NW (P&D) Internal External

Prioritize (ROI)
- according to what?

• Revenue gained if solving problem
• Cost (investment) for remedy
• Time to solution (T, P, C)
• Break even
• ROI
- … and don’t forget the initial investment
for detecting the problems….
ID Leakage W h e re W ho TPC S o lu tio n Revenue S o lu tio n S o lu tio n B -E ROI P rio
(p ro c e s s ) (u n it) a c tio n to g a in cost tim e tim e % tim e
1 X xxxx N etwork P & D E n g in eerin g T
2 P
3 C
4
5
6

The revenue assurance process should pay for itself!

How to do it?
- overview

MI CC Invoicing
M&S Collection
NW (I&A)
NW (P&D)

• Introduce multiple measurement points
• Compare data
RA system
• Analyze losses
• Remedy leakage
(T, P, C)


What steps can be taken today?
- Conclusions


Revenue Assurance is NOT
• A new phenomenon
• An approach by bits and pieces
- Network assurance
- Quality assurance in billing
- …
• An IT system
- A multitude of providers will tell you the system solves
it all
• A theoretical audit activity
- An absolute necessity to work within the organization
• Revenue assurance is an integral and integrated
concept
- Combined knowledge & real operator experience
- Quantifying /visualizing the total (Board, auditors)


Short term perspective
- quick hits
• Quick analysis of leakage
• Quick remedies
- Technology remedies
e.g., Network inventory & update
• Generate revenue for the necessary long
terms investments!
• The revenue assurance process should
pay for itself!


Conclusions
• Back to the example: Revenue 10 MUSD
Lost: >2,3 MUSD
• The RA project should pay for itself
• Should be within top 5 company priorities!
- Compare to developing new services!
• Define the required level (2-8 months):
- Do it alone: 10% recovered (230000 USD)
- With support: 80% recovered (~2 MUSD)

$ External support
Operator alone
Time gain!

Time

• The perfect participation job!

Track record
Estonia,

• Vast World-wide experience
Fixed Network
Latvia, Paging &
Fixed Network
Ireland, Fixed
& Mobile

- Operational knowledge since 1853 Lithuania, fixed &
Mobile network
Poland, Fixed

- 30 years’ experience of international
Network
Saudi Arabia,
Fixed Network
India, Mobile
& Paging
Thailand
Nicaragua Slovenia, GSM Fixed Network
telecoms
Fixed & Mobile
Nigeria
Fixed & Mobile
- 500 completed projects in more than
Colombia, Fixed
Network Saudi Philippines
Uganda, GSM Arabia, ISP Fixed Network
100 countries
Ecuador, Mobile Sri Lanka, WLL
Network Access Network

- Fixed, mobile and IP Namibia, GSM
Brazil, Botswana, WLL
Carrier Brazil, Access Network
D-AMPS
Ongoing projects
Where Swedtel has been active


Muchisimas Gracias!
www.swedtel.com


Carina Bark

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