Larry Snipes, Senior Manager of Revenue Assurance at Alaska Communications, presented a case study on the challenges of fraud management, selecting a fraud prevention vendor, and why they chose cVidyaCloud

1. Cloud based Fraud Detection and Management
Solution – Alaska Communications Case Study
Larry Snipes, Alaska Communications
May 23, 2012

2. Larry Snipes – Alaska Communications
1996 – Switched Billing Manager – Pacific Bell (San Francisco, CA)
1999 – Senior Manager, Bill Verification – Covad Communications
(San Jose, CA)
2000 – Senior Manager, Bill Verification – DirecTV Broadband
(Cupertino, CA)
2003 – Senior Manager, Bill Verification – MegaPath Networks
(Pleasanton, CA)

3. Larry Snipes – Alaska Communications
1996 – Switched Billing Manager – Pacific Bell (San Francisco, CA)
1999 – Senior Manager, Bill Verification – Covad Communications
(San Jose, CA)
2000 – Senior Manager, Bill Verification – DirecTV Broadband
(Cupertino, CA)
2003 – Senior Manager, Bill Verification – MegaPath Networks
(Pleasanton, CA)
2004 – Senior Manager, Revenue Assurance –
Alaska Communications (Anchorage, AK)

4. Alaska Communications – Who We Are
Six Local Exchange Companies
 ACS of Alaska
 ACS of Anchorage
 ACS of Fairbanks,
 ACS of the Northland
ACS Wireless
 Covers 85% of Alaska’s population
including business, residential and tourist
corridors
ACS Long Distance
 Peering points (Seattle & Portland)
ACS Cable
 Presence in AK, WA and OR
 Redundant Submarine cables

5. Alaska Communications – Who We Are
ACS Revenue: ~$346M
The right strategic choice:
Wireless 42%
Traditional
Wireline 44%
Enterprise 14%

6. Key Challenges in Preventing Fraud
• Processes did not allow for
24/7 monitoring
Monitoring
Network
IT
Prevention Support • Existing applications not capable of
comparing/ tracking individual calls
• Lack of Server Space
Assets
• Individuals knowledgeable in
telecom fraud

7. Reality of Telecommunication Fraud in Alaska
Increased
 COGS associated with Fraud runs from $2K to $72K per occurrence
Expense
 PBX Hacking
Prevalent
 Call Forwarding (Quasi Fraud)
Fraud Type
 Wireless Data Fraud

8. Key Considerations – Fraud Management System
Outsourced  No internal resources available to support
$  No Capital Expenditures
No Upgrades  Server
 Application

9. Vendor Selection Process

10. Vendor Selection Process – Why cVidya
Best Price  Best Value for Money
 Dedicated Technical Personnel to Support Alaska Communications
Level of
Support  Required minimum resources from our organization, and did not
require in-house fraud expertise.
Experience &  Industry Leader
Leadership  Leveraging TMF standards and best practices in its products and
implementations

11. Deployment Process – cVidya Provided Timeline

12. Deployment Process
 Additional Server Space
On Premise
 Extensive Training of Business Owner Admin
Deployment
 Design process for duplication of Call Detail Records
 Train Users
Cloud  Design process for analyzing our Call Detail Records
Deployment  Train users

13. Predefined Roles and Responsibilities
 Designing Business Rules that determine possible fraud
Alaska
 PBX Hacking
Communications
 Wireless Data
 Wireless Subscription
 Sending Call Detail Records to the cloud
 Processing/analysis of the Call Detail records
cVidya  Up to 5M CDRs daily
 Both Wireless and Wireline records
 Maintenance of the server/application
 Notifying Alaska Communications of traffic in violation of business rules

14. Deployment Process – Cloud Configuration

15. Return on Investment – Cloud
During Testing  Achieved positive ROI in the testing phase
Since  To date multiple times the investment
Deployment of
Cloud Solution  Customer Experience - Priceless

16. Thank You!
Larry Snipes: larry.snipes@acsalaska.com
Nava Levy: nava.levy@cvidya.com