Revenue leakage high in Africa
BUSINESS| May 17, 2012, 12:40 p.m.
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.
MORE BUSINESS NEWS
Barclays Africa launches RiseA new global start-up community has been launched to pioneer financial services and unlock Africa’s potential. Read More
JUA Energy enters Nigeria after success in KenyaAfter successfully entering the Kenyan market in April 2014, solar-powered systems and technological electronic accessories manufacturer brand JUA energy has launched in Nigeria to sell through e-tailer Jumia. Read More
Fundamo founder joins Nomanini’s advisory boardFundamo founder Hannes Van Rensburg, generally considered the father of mobile payments, has joined the advisory board of Nomanini, a South African-based, enterprise technology transactions platform provider. Read More
Airtel sponsors Indo-Africa ICT Expo 2015Airtel is sponsoring the Indo-Africa ICT Expo 2015 being held at the Kenyatta International Conference Centre (KICC) now underway in Nairobi. Read More
MTN acquires Smart Village to enhance its foothold in the fibre network spaceMTN has concluded a deal with MultiChoice to acquire Smart Village, which will accelerate the mobile operator’s fibre to the home (FTTH) strategy to be the provider of choice for high speed fibre network across South Africa. Read More
Agilitude opens East African office on the back of mobility and cloud growthSalesforce reseller and Consulting Partner Agilitude has announced that is has opened an office in Kenya, making East Africa its next target for growth. Read More
MTN gets ethics management committeeMTN Nigeria has set up an ethics management committee with the sole responsibility of managing ethics risks. Read More
200 entrepreneurs to launch innovative businessesOver 200 entrepreneurs from across Africa are set to receive resources, networking opportunities and mentorship from Microsoft 4Afrika and AMPION. Read More
Airtel Ghana MD named Marketing Woman of the YearThe Managing Director of Airtel Ghana, Lucy Quist, has been crowned Marketing Woman of the year at the Chartered Institute of Marketing Ghana (CIMG) Marketing Performance Awards. Read More
FEATURED STORYInnovative designer takes e-waste to another level
Gladys Muyenzelwa is a Gaborone based artist and designer who has an eye for ethnic and contemporary design. But unlike other designers, Muyenzelwa has found a way of using e-waste to make her creations.
BEST READ NEWS
IN DEPTHHigh 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.
COMPANY NEWSLuba Freeport streamlines its sea of paper with Sage X3
Luba Freeport has implemented the Finance and Distribution modules of the Sage X3 business management solution to automate its business processes across finance and operations.