Calls for the introduction of a more formalised risk management approach
Mobile network operators could lose nearly one-quarter of revenues or $300bn due to fraud and billing error by 2016, according to a new report from Juniper Research.
With the implementation of revenue assurance and fraud management applications, network operators are likely to reduce the scale of potential global leakage by more than $250bn.
The report co-author Windsor Holden said, "By consolidating and automating its operational processes, the MNO can establish 360 degree visibility of the complete revenue chain in order to detect hidden losses or fraudulent activity rapidly."
Juniper Research noted operator-billed revenues were more than $900bn in 2011 as the level of billable events has increased, with networks in turn reporting an increase leakage across the revenue cycle including sales, network configuration, rating and billing.
Revenue leakage levels are currently reported highest in the Africa & Middle East, where there are high rates of interconnect bypass fraud, under which fraudsters avoid paying call termination fees, and SIM cloning.
The research firm expects that the introduction of a more formalised risk management approach will address these issues.
Juniper Research stated as both revenue assurance and fraud management use the same data, operators should opt for a single technology platform that enables both sets of operations.
Absence of cross-departmental collaboration and information-sharing is also identified as a hurdle to reducing leakage.