Parcus Group presentation to Pacific Islands Telecom Association (PITA) AGM & Conference 2016 on telecom revenue assurance, methodologies and considerations including steps on detection, correction and prevention.
2. What is Revenue Assurance (RA)?
4. Organizational Considerations
5. Scope & Domain
6. Detection / Correction
8. The biggest risks?
9. Things to consider
11. Fraud / Abuse
a: Interconnect – “insider job”
b: Margin leakage in bilateral voice
• Increasingly competitive environment
• Shrinking margins
• Cost cutting
• Growing complexity – systems – products – partnerships – M&A
• High volume – low value transactions => “small errors” have big financial implications
4. What is Revenue Assurance (RA)
“Recovery of lost revenues or costs”
“Revenue Assurance” is a practical response to perceived or actual issues with
operational under performance”
“A means to identify, remedy, and prevent, problems that result in financial under
performance without seeking to generate additional sales”
“All products & services delivered as expected; all products & services correctly and
completely charged, including expected margin, in a timely manner”
7. Scope & Domain
or – Revenue & Cost?
Margin & Pricing?
What about risk
In order to ensure that the RA activities can be measured and targeted effectively the
scope in terms of objective (what to look for) and domain (where) must be defined.
8. Detection / Correction
Monitor, compare and audit data in order to identify errors
• Absolute & Relative comparisons
• Aggregate samples
• Test Event Generation and Interception
Forensic RA – finding the root cause to known or unknown RA issues
• Addressing RA issues identified by the detection activities
Implementing measures that minimise the risk of anomalies
• Synchronisation of data and systems
• Data Integrity enhancing measures
• Pre-process checks
• Post-process checks
• Ensuring RA is included in Product Development / Pricing process
11. Things to consider
Scope & Domain
Balance between Detection & Prevention
Cost – benefit ratio
Competence / Resourcing
Internal / External
Manual / Automated
Indirect costs of rectifying RA issues
A balanced and deliberate approach to Revenue Assurance, embedding the activities
into the operational activities of the organization, is an effective tool to drive profitability
and to minimize risk.
13. What is Fraud?
In law, fraud is deliberate deception to secure unfair or unlawful gain.
The purpose of fraud may be monetary gain or other benefits.
14. What is Fraud?
• Civil fraud
i.e., a fraud victim may sue the fraud perpetrator
“breach of contract”
• Criminal fraud
i.e., a fraud perpetrator may be prosecuted and imprisoned by
“breaking the law”
15. How it is done
Artificial Inflation of Traffic (e.g.. via call generators)
Fake voice mail or IVR etc.
• Destination / Termination
Traffic short-stopping / FAS
Manipulation of B-numbers (double country codes)
SMS /call spamming
17. Interconnection Fraud / Risk
Abuse of National & International MTR’s
Re-origination of traffic
Manipulation of A-numbers
18. Case study – Premium / Fraud traffic
Acquisition of number range
Find a distributor
• Someone that has traffic to the number range used
• Blend with large volume of ”normal traffic”
Create / buy content
• Fake ring signal / Fake Voice mail / IVR
• Normal traffic / abuse price plans