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

Top 10 risks worth considering when expanding into Africa

Companies planning to expand across Africa must make a concerted effort to understand the risks, and not assume they “know” Africa, says ContinuitySA. Read More

Shop Soko connects Kenyan artisans to lucrative international markets

A new e-commerce platform, Shop Soko, is helping Kenyans access a lucrative international market. Read More

Ricoh SA begins rollout of new services-led strategy, Africa expansion

Jacques van Wyk has been appointed Ricoh SA’s new COO to drive the expanded strategy that will enable the business to become a services-led organisation and see its expansion into the rest of Africa. Read More

Stock Exchange launches news service

A news service by the name of X-News has become the latest product coming from the local bourse, the Botswana Stock Exchange (BSE) recently. Read More

Telkom forays into Botswana through acquisition

South African telecommunications giant Telkom is making inroads into the Botswana market through the acquisition of an ICT company, Business Connexion (BCX).  Read More

Umati Capital secures $10m finance line from ApexPeak

Kenyan financial tech startup Umati Capital has agreed a deal with ApexPeak securing its first line of wholesale capital.  Read More

Kirusa acquires Ghana’s Saya Mobile

Voice messaging and social media apps firm Kirusa has acquired Ghana-based Saya Mobile, which provides instant messaging apps geared specifically for African consumers.  Read More

SAP to invest up to $500m in African innovation

Pfungwa Serima SAP has announced a long-term commitment to regional expansion, sustainable growth and skills development of up to 10,000 IT consultants in Africa. Read More

Microsoft, UNDP partner to support Ethiopian entrepreneurs

First Lady Roman Tesfaye (front) visiting women undergoing entrepreneurship training Microsoft has signed a collaborative agreement with the United Nations Development Programme (UNDP), under which Microsoft will provide training and mentorship services to 200,000 Ethiopian entrepreneurs. Read More

Location based services market to reach $43.3bn by 2019

A new report from Juniper Research forecasts that the Mobile Context and Location Services market will reach $43.3bn in revenue by 2019. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Nigeria’s VAS providers ‘on brink of extinction’Nigeria’s VAS providers ‘on brink of extinction’

WASPAN chief Simon Aderinlola says unless the regulator intervenes, WASPAN may not have anything left to regulate. Kokumo Goodie reports.

IN DEPTH

Kenya rolls out e-extension to improve agricultureKenya rolls out e-extension to improve agriculture

In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.

COMPANY NEWS

Sage CRM is Umsinsi Health Care’s engine for growth

Umsinsi Health Care, a distributor of medical products, has enhanced customer service and streamlined its business processes by implementing Sage CRM as its customer relationship management platform.