Mobile Industry Lost over $58 billion in Revenue in 2011 due to Inadequate Billing Systems

Hampshire, UK, (PresseBox) - A new report from Juniper Research finds that the mobile telecoms industry lost more than $58 billion last year - over 6% of global revenues - due to inadequate FM (Fraud Management) and RA (Revenue Assurance) processes. The report suggests that under a 'nightmare scenario' whereby operators fail to implement any remedial measures over the next five years, the scale of losses could rise five-fold by 2016.

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

Protecting next-generation connectivity through RA, FM investment

However, the report recommends that operators can minimise the outflows resulting from next-generation connectivity by implementing automated system solutions that provide end-to-end visibility of the revenue chain. With sustained investment, the report finds that leakage will decline to 4% of revenue in 2016, representing a net reduction of nearly $15 billion per annum compared with 2011.

According to report co-author Dr Windsor Holden: '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, RA and FM systems demonstrate a strong case for return on investment.'

Other key findings from the report include:

- Revenue leakages will continue to be relatively higher in developing regions, particularly in Africa & the Middle East.
- Solutions are exploiting a single repository of data to reduce TCO (Total Cost of Ownership) and are integrating a number of complementary applications as the industry moves towards Business Assurance.

The 'Assured Revenue' whitepaper is available to download from the Juniper website together with further details of the full report.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

Juniper Research Limited

Juniper Research was founded in 2001 by the Wireless Industry Consultant Tony Crabtree, in the midst of the telecoms and dot-com crash. The business was fully incorporated in February of 2002 and has since grown to become one of the leading analyst firms in the wireless sector.

Juniper specialises in identifying and appraising new high growth market sectors within the mobile ecosystem. Market sizing and forecasting are the cornerstones of our offering, together with competitive analysis, strategic assessment and business modelling.

We endeavour to provide independent and impartial analysis of both current and emerging opportunities via a team of dedicated specialists - very knowledgeable, experienced and experts in their field.

In terms of structure, Juniper is organised along five main streams:

- Mobile Content & Applications
- Mobile Commerce
- Handsets & Devices
- Mobile Markets & Strategies
- Networks & Technologies

Each stream offers a blend of blogs, free whitepapers and paid-for research - normally in the form of research reports, strategic briefings and databases. Clients range from mobile operators and service providers through to content providers, vendors and financial institutions. Juniper's client base spans the globe, with the majority of its clients in North America, the Far East and Europe.

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