The document summarizes a case study and engagement by Balfoort Consulting to conduct a revenue assurance review for a tier 1 mobile operator in Asia. The review had a 14 week scope to assess revenue assurance processes and identify risks. Balfoort utilized a test event generation solution to independently test network integrity, rating and billing accuracy, and end-to-end subscriber processes. Recommendations were provided regarding network and systems assurance, revenue assurance functionality, vendor management, and regulatory compliance. Lessons highlighted the importance of independence, consensus building, timely information sharing, and managing multiple stakeholders.

1. Balfoort Consulting
A Holistic Approach To Revenue Assurance Reviews
Ferdinand Balfoort
Founder & Director
Balfoort Consulting
Juan Prieto
Marketing Manager
Roscom
A Case Study

2. Balfoort Consulting
Agenda
• Introduction
• Case Study and Engagement Strategy
• Proactive Testing
• Recommendations & Lessons Learnt

3. Balfoort Consulting
Introduction

4. Balfoort Consulting
About Us
• Balfoort Consulting
• Balfoort Consulting (BCSN) is an international business, risk and audit consulting firm
• The firm specializes in solving problems in finance and transactions, operations,
technology, litigation, governance, risk, and compliance.
• Provide more effective controls over non‐financial risks such as fraud, systems weakness
& failure, and breaches in compliance with telecom regulatory.
• Help businesses against losses, earnings surprises and reputation damage by
strengthening the management of strategic, market and other financial risks.

5. Balfoort Consulting
About Us
• Roscom Limited
ISO 9000:2000, UK registered company with operations in England, Australia and South
Africa.
Leader in event generation solutions for Network, Revenue & Costs Assurance as well as
Regulatory Compliance
The first BABT¹ attested system of its kind
Over 12 years delivering RA solutions in more than 54 countries
1 – British Approvals Board of Telecommunications

6. Balfoort Consulting
Introduction
• What does holistic mean?
• And Revenue Assurance?
Wikipedia says:
is a niche business activity most commonly undertaken within businesses that provide telecommunication services. The activity
is the use of data quality and process improvement methods that improve profits, revenues and cash flows without influencing
demand. This was defined by a TM Forum working group based on research documented in its Revenue Assurance Technical
Overview.

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So, why does revenue leakage occur?
…. and why it remains unknown?
• Organisational integration
• Including Business Processes and
Technologies
• New Products
• Competitive pressures
• Tariff Innovation
• PLM
• New Services (Data)
• New systems
• Small market windows
• Pressure from commercial
departments
• Lack of synergy between Marketing
and Operations
• Functionality of solutions and their
interfaces to existing infrastructure
• Management of third parties and
know how transfer
• Does technology really drive the
business?
• Definition of KPI and leakage
• Organisational integration
• Including Business Processes and Technologies
• New Products
• Competitive pressures
• Tariff Innovation
• PLM
• New Services (Data)
• New systems
• Small market windows
• Pressure from commercial departments
• Lack of synergy between Marketing and
Operations
• Functionality of solutions and their interfaces to
existing infrastructure
• Management of third parties and know how
transfer
• Does technology really drive the business?
• Definition of KPI and leakage

8. Balfoort Consulting
Case Study and Engagement Strategy

9. Balfoort Consulting
Case Study : Overview
• Customer Profile
Mobile Operator
Tier 1 Operator
14 millions
80 % Prepay 20 % Postpay.
Fast growing contribution from broadband
services
Working with multiple MVNOs
• Project Outline
Limited budget
14 weeks duration
Co‐sourced with internal Audit
Sponsored by Internal Audit, CFO and Holding
Company

10. Balfoort Consulting
Case Study : Scope
• Scope
To conduct an End to End review of selected Revenue Assurance processes in a Tier 1 Mobile Operator in
Asia.
• Objectives
To conduct a full risk assessment
Definition of relevant domains in scope related to RA and agreement with management
Prioritization of domains to be audited in depth based on risk assessment
Integration of statistical testing with operational review routines
If you can't describe what you are doing as a process, you don't know what you're doing.
J. Edwards Deming (1900 ‐ 1993)

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Case Study : The Review Process
• Audit Steps

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Proactive Testing
Test Call Generation

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So, why use a Test Event Generation solution?
REACTIVE Approach PROACTIVE Approach
Monitoring and reacting to alarms defined
against identified risk points
Reliance on Network/Operations for
testing and root cause analysis
Limited or no pre‐launch testing capability
for new products & services (tariffs, promotions)
Lack of independent RA controls means
assurance is driven by “what is there”
Data Warehouse & statistical techniques
dependent on analysis, and exclude
network assurance
Testing of real user activities to detect and
prevent potential issues
Call/event perspective provides a new
dimension to simplify root cause analysis
Products & services can be tested fully,
preventing revenue loss
Independent RA controls focus assurance
on “what should be there”
Proactive testing with best‐in‐breed tools
improves root cause analysis, so that the
true end‐to‐end value can be delivered

14. Balfoort Consulting
Test Call Generation and the Risk Domain

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Network Independence
Independent
xDR

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Network & Systems Assurance
Service Integrity
• Dropped & Failed calls Ratios
• VAS Validation
• Audio path integrity
• Service Assurance
• By destination
• International
• Data Services
• New platforms & Upgrades
• Switch clock drifts validation
xDR Integrity
• xDR Generation
• xDR creation
(Switch/IN/Mediation/Billing….)
• Data and Content xDRs creation
• Very short/long calls
• VoIP / CPS
• Completeness (Multiple sources)
• Missing Records
• Duplicate Records
• Extra Records
• Corrupted Records
xDR Accuracy
• Event metering accuracy
(Duration/Byte count)
• Start time validation
• Cross-Boundary testing
• Duration & Data volume
rounding rules validation
• Round Up / Down
• To second / Minute
• To Byte or Kilo Byte….

17. Balfoort Consulting
Rating & Billing Assurance
Rating Validation
• Tariff rating rules validation
• By service type (Voice / SMS..)
• By time of day / day of the
week
• Based on destination
• Connect charges & periods
• Content Downloads etc..
Billing Validation
• Validation of complex bundles:
• Specialoffers
• Promotions (Friends and
family..)
• One off charges
• Prepaid Credit Balances
• Validation of pricing rounding
rules
End to End
• Subscriber to Invoice Validation
• Osprey Measurements vs.
Network
• Regulatory compliance where
required

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Recommendations & Lessons Learnt

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Case Study : Recommendations
Network & Systems
Assurance
Revenue
Assurance
Cost
Assurance
Regulatory
Compliance
Product Development
IT Security Frameworks
Availability of network topographies and systems descriptions
CAPEX investment management
Revenue Assurance functionality and effectiveness
Who drives the tools
Availability of documentation related to risk assessment and detail audit
Vendor and third party contractor management
Fraud mitigation
KPI definition and management reporting
Monitoring of systems
Segregation of roles and responsibilities
The Risk Domain
Recommendation

20. Balfoort Consulting
Case Study : Lessons Learnt
Test results and
Operational
Recommendations
Independence
Consensus
Building
Cultural Aspects
Timely
Information
Multiple
Stakeholders

21. Balfoort Consulting
Thank You..
Ferdinand Balfoort
Founder & Director
Balfoort Consulting
Juan Prieto
Marketing Manager
Roscom
Any questions?