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
Nigeria’s forex policy hurts ICT business: SpectranetThe Central Bank of Nigeria policy that has taken the dollar out of circulation is hurting business, says Spectranet. Read More
Global Tech Investor Techstars selects its first company from East AfricaUS accelerator TechStars believes Kenya's Bamba Group could be the next AirBnB or Dropbox within the next five years. Read More
WorldRemit raises $45m to drive next phase of growthMoney transfer service WorldRemit has raised $45m in financing from TriplePoint Venture Growth BDC Corp. and Silicon Valley Bank. Pioneering a mobile-first approach to remittances, WorldRemit will use the funds to support its rapidly growing transfer volumes. Read More
Jumia, AXA partner to provide insurance products and services to African customersAXA will become the exclusive provider of insurance products and services through Jumia and other AIG online and mobile platforms in Africa. Read More
Orange to acquire Millicom subsidiary in DRCOrange and Millicom have signed an agreement leading to Orange’s acquisition of Millicom’s operations in the DRC. Read More
Ringier Africa and Asia Pacific get new structure and leadershipRingier is restructuring its international market set-up for the beginning of the new year, with four dedicated teams established for each of the African business models. Read More
Travelstart secures strategic partnership with MTNAmadeus, the global technology investor, has announced a $40m investment in Travelstart in partnership with MTN, Africa’s leading mobile and digital life services operator. Read More
VMware appoints new Regional Director of SSAVMware has announced the appointment of Matthew Kibby as regional director of Sub-Saharan Africa (SSA). Read More
More than 700 delegates at Sage’s first African Business Partner Conference in South AfricaSage’s first African Business Partner Conference in SA marks a milestone in Sage’s journey towards becoming the global market leader for integrated accounting, payroll and payment systems. Read More
SweepSouth secures funding from top SA Venture CapitalistsVumela Fund has backed online home cleaning services platform SweepSouth. Read More
FEATURED STORYViber Spreads Good Vibes in Africa with the introduction of public chats
Viber, one of the leading messaging and calling apps with more than 664 million unique users worldwide, has opened its latest social channel ‘Public Chats’ to partners in Africa and the Middle East.
BEST READ NEWS
IN DEPTHPoised for greater heights – Roshi Motman, AfricaCom CEO of the Year Winner
Roshi Motman is not your average CEO. Since taking up the reins as the first female CEO of Tigo Ghana in 2014, she has led the Tigo brand through a remarkable transformation.