Revenue leakage high in Africa

BUSINESS

|
Image: By BiztechAfrica
Revenue leakage high in Africa

A new report from Juniper Research has found that mobile network operators face losing nearly one-quarter of revenues – nearly USD300 billion – to a combination of fraud and billing error by 2016.

However, it argues that through the implementation of revenue assurance and fraud management solutions, network operators will be able to substantially reduce the scale of potential global leakage by more than USD250 billion by that time.

The report, ‘Mobile Revenue Assurance & Fraud Management: Business Strategies & Forecasts 2012-2016,’ found that as the level of billable events has increased – operator-billed revenues totalled more than USD900 billion last year – networks have in turn experienced an upsurge in leakage across the revenue cycle from sales to network configuration, rating, and billing.

The report notes that while such leakages are often the result of system error – ranging from incorrect billing to chargeable call records not being transmitted to the billing system for rating and charging – networks are also experiencing a sharp rise in fraudulent activity.

According to the report, revenue leakage levels are currently highest in the Africa and Middle East, where there are particularly high rates of interconnect bypass fraud (under which fraudsters avoid paying call termination fees) and SIM cloning.

However, according to report co-author Dr Windsor Holden, the introduction of a more formalised risk management approach will significantly alleviate these issues. “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. What is required is a combination of real time analytics and proactive business intelligence,” he said.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Equity Group appoints Bhartesh Shah as COO

Equity Group Holdings has announced the appointment of Mr. Bhartesh Shah to the Chief Operations Officer (COO) position. Read More

The nine top trends in CEM today

Customer experience management that genuinely enhances customer ‘stickiness’ depends on new strategies and now mindsets, says Frost & Sullivan. Read More

MTN, former ATCON chief disagree over naira devaluation

MTN Nigeria and a former president, Association of Telecoms Companies of Nigeria (ATCON) have disagreed over further devaluation of the naira. Read More

MTN Business launches Supplier Development Programme in Mpumalanga

MTN Business has reaffirmed its commitment to develop small and medium-sized enterprises (SMEs) within Nelspruit by extending its Supplier Development Programme (SDP) and Accelerator Programme (AP), the company’s enterprise development initiatives, to the Mpumalanga Province of South Africa.  Read More

VMware appoints Senior Vice President and GM of EMEA

VMware, a global leader in cloud infrastructure and business mobility, today announced the appointment of Jean-Pierre Brulard as Senior Vice President and General Manager of EMEA.  Read More

InfoGraphics chief urges investment in tech start-ups

The Managing Director of InfoGraphics Nigeria, Chinenye Mba-Uzoukwu, has urged wealthy Nigerians to invest in tech start-ups. Read More

Convergence Partners acquires stake in Nigerian Fintech firm

Convergence Partners has announced an investment of $20m for a strategic, minority stake in Venture Garden Nigeria. Read More

MTN Business augments its management team further with key strategic appointment

MTN Business SA has appointed an industry veteran, Mariana Kruger, as General Manager of Private Sector.  Read More

SA Competition Tribunal approves Telkom-BCX merger

Business Connexion Group Limited has announced that the Competition Tribunal of South Africa has approved the proposed merger between Business Connexion Group Limited ("BCX") and Telkom SA SOC Limited ("Telkom") with the imposition of conditions. Read More

Kenyan SACCOS riding on innovation to attract customers

As confidence in mainstream banks remains low due to prohibitive interest rates, customers are embracing Savings and Credit Cooperatives (SACCO) as an alternative. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

Young innovators shine during pitch sessionsYoung innovators shine during pitch sessions

Botswana saw an array of upcoming tech wizards selling their ideas during the Vendors’ Day pitch sessions this week.

IN DEPTH

High tech homes: Just press playHigh tech homes: Just press play

High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.