Telecom reporting training

Telecom Revenue Assurance Reporting

Training

Ikwe Gideon

Revenue Assurance Consultant

[email protected]

This document contains information confidential and proprietary to Datahouse. No part of it may

be used, circulated, quoted or reproduced with out Datahouse’s consent.

Training agenda

1 Overview of the Revenue Assurance(RA) Incident Reporting

2 Overview of RA Monthly Management Report

3 Quantification of Revenue Leakages

2 9 July 2015 (c) 2014 Datahouse Consulting

Overview of the Revenue Assurance(RA) Incident

Reporting


Sources of data used or evidence of finding

Findings/observation

Recommendations and conclusion

Background of the investigation

Revenue and Business impact


Sources of data used or evidence

of finding





Content • Brief introduction of your investigation

• Why you are conducting it

• Any reference to prior investigation/assignment e.g

management request etc

Example • As part of our weekly/monthly RA review of prepaid

traffic, we noticed that some GRPS traffics are not

being charged. And these traffic does not belong to

bundled GRPS service, there are normal per usage

billing traffic type. This prompt our further investigation

to know why this is happening



of finding





Content • All the various data uses and their sources

• Other non data sources as evidence of findings

Example • OCS,

• Billing and rating

• Invoices

• GPRS

• Confirmation from other department

• etc



of finding





Content • What you observed

• All reasonable deduction noticed

Example • Missing CDR’s

• Under and over Billing

• Missing data

• Misapplication of business rules

• etc



of finding





Content • The Revenue loss, per day, month and year

• The potential revenue loss, if the risk exist but not

precipitate yet

• The effect of this observation on customers, short and

long term

• The effect on the image of the company long and short

term

Example • Adverse effect on customer perception about MCI

• Effect on customer perception about billing system and

professionalism

• The total revenue loss compare to total revenue from

that revenue stream

• Customer churning the network

• etc



of finding





Content • Possible action to be taken to correct effect

• Follow up action to ensure effect is ratify

Example • The under billing should be fixed immediately because

we are losing money daily.

• The new data source should be incorporated in the

billing system immediately.

• Marketing should recall the product and improve on the

features because we are losing money

• Customer should be informed at a massive level

campaign on the feature of the service to stimulated

demand.

• etc

Training agenda






Quantification of the impact on revenues due to issues during the month

KPIs for the reporting month and previous two months along with the year to date

status

Other ad-hoc details and analysis requested by the Group on a periodic basis

A listing of major issues faced during the month

Details of Major Revenue Stream including deferred revenues as per IN system

Overview of RA Monthly Report


Quantification of the impact on revenues

due to issues during the month

KPIs for the reporting month and previous

two months along with the year to date

status

Other ad-hoc details and analysis requested

by the Group on a periodic basis

A listing of major issues faced during the

month

Details of Major Revenue Stream including

deferred revenues as per IN system

• Prepaid (IN, SDP, Charging, Tariff Table, Service

Class, Voucher Errors, Activation)

• Post paid (CDR Rating, Tariff Table, Package Plan,

Activations, Disconnections)

• Switch (MSC & HLR Service Provisioning,

Subscriber mismatch between switch)

• VAS (SMS, Roaming, MVoucher, jiring, WLL

Network, GPRS, SMS Info,)

Risk

Issue

Revenue

Leakage

Risk

Description

Date

ident

ified

Priority

Level

Estimated

Revenue

Loss/saving

Action

Taken

Current

Status






status




month



Finding for the Month of Prepaid Post-paid Network VAS

Interconnec

t/Roaming

Revenue Losses (1)

Fraud Losses (2)

Reporting Errors (3)

Revenue Foregone (4)

Revenue Exposure (5)

Total Risk Exposure

(1+2+3+4+5)

Monthly Gross Revenue

% of identified Total risk

exposure to gross revenue

Revenue Savings from Loss

Prevention

% of total savings to Total Risk

exposure






status




month



No. KPI Formula Oct,2012 Nov,2012 YTD

1

Provisioning

Failures –

Prepaid

(Total unsuccessful prepaid

provisioning )/Total prepaid subscriber

sent for provisioning via the platform)

2% 1% 3%

2

Provisioning

Failures –

Postpaid

(Total unsuccessful postpaid

Provisioning)/ Total postpaid subscriber

sent for provisioning via the platform)

9% 10% 12%

3

HLR vs. Prepaid

billing system

Prepaid MSISDNs present only in HLR

and not in prepaid billing

system(IN))/Total Prepaid MSISDNs

present in HLR

0.1% 0.2% 0.4%

4

HLR vs.

Postpaid billing

system

(MSISDNs present only in HLR and not

in postpaid billing system)/Total

Postpaid MSISDNs present in HLR

0.02% 0.03% 0.05%






status


by management on a periodic basis


month



Retail

Revenue

Reporting

Voice(rials) SMS(rials) GPRS/Data(rials) MMS(rials) VAS(rials) Monthly

Recurring

charges

Credit

Transfer

Post-paid

Prepaid

Total(rials)

Wholesale Revenue/Cost Reporting Voice(rials) SMS(rials) GPRS/Data(rials) MMS(rials) VAS(rials) Total(rials)

Roaming TAPIN

Roaming TAPOUT

Mark-up Revenue(TAPIN)

Interconnect Outgoing all Partners

Interconnect Incoming all Partners

National roaming(kish)

WLL interconnect cost all Partners

TIC international cost

VAS

Total(rials)

Prepaid Post-paid

Revenue and Volume traffic per destination Voice(rials)/Minutes SMS(rials)/count Voice(rials)/Minutes SMS(rials)/Count

On-net

Off-net

International

Total

Freebies Reporting Voice(Minutes) SMS(count) GPRS/Data(MB) MMS(MB) VAS(count)-SMS

Tot

al

Post-paid

Prepaid

Total

Precentage of Freebies value to Total revenue

Training agenda






Revenue Exposure

Revenue Forgone

Reporting Error

Revenue Loss

Revenue Savings and Recovered(Actual and Exposure)

Quantification of Revenue Leakages-Definition and

methods


Revenue Exposure

Revenue Forgone

Reporting Error

Revenue Loss

Revenue Savings and Recovered(Actual and

Exposure)

• Definition

Actual Revenue Loss resulting from the non-

collection (or incomplete/inaccurate

computation) of revenues for services

provided to customers and/or partners i.e.

service was provided but revenues not

collected or inaccurately charged to

customer's account. E.g. incorrect rating of

calls, free calls due to configuration errors,

subscription fraud etc.

• Method of Calculation

Will be determined as follows –

count/volume/duration of unbilled ‘free’

network event (or differential of incorrectly

billed) x blended tariff plan for the affected

network event.


Revenue Exposure

Revenue Forgone

Reporting Error

Revenue Loss


Exposure)

• Definition

Potential Exposures arising from process or

systems gaps which could easily be converted

to revenue losses either by internal omission

or commission errors or deliberate exploitation

of the process/system gaps by fraudulent

parties. E.g. weak RCV activation process;

weak access control etc.


Will be determined as follows – total potential

loss exposure as at a point in time i.e.

money/revenues at risk as a result of the

exposure..


Revenue Exposure

Revenue Forgone

Reporting Error

Revenue Loss


Exposure)

• Definition

This is lost revenue generation opportunity as

a result of service unavailability and typically

results in loss of market share for the duration

of the incident. E.g. core network node

downtime resulting in customers' inability to

call for the duration of downtime


Will be calculated as a projection based on

day-of-week average for last 3 weeks from

day of incident/service failure. Example: If on

a Wednesday there is a drop in normal traffic

trends for a particular node due to some

challenges on the node forgone revenue will

be computed as the difference between

average revenue on that node for immediate

past 3 Wednesdays less revenue reported for

Wednesday with the incident.


Revenue Exposure

Revenue Forgone

Reporting Error

Revenue Loss

Revenue Savings –Actual

• Definition

This represents revenue saved i.e. losses

adverted as a result of: Revenue/fraud

leakage situation corrected i.e. revenues that

would have been lost if the particular leakage

was not identified and plugged. Prevention of

revenue foregone e.g. RA activities resulting

in prevention or reduction network down time.

A positive addition to revenues gained as a

direct result of an RA intervention

(determined as a positive deviation from

normal revenue or cost trend) e.g.

supplementary invoices/bills issued to

partners/customers as a result of traffic

hitherto unbilled, error in call routing resulting

in free calls, activation of wrong rates on the

charging platform etc.

• Method of Calculation(Cont’)


Revenue Exposure

Revenue Forgone

Reporting Error

Revenue Loss

Revenue Savings –Actual


When a revenue leakage has been effectively

plugged, the revenue savings from such mitigations

shall be recognized using either of the following

approaches below depending on feasibility:

Approach A:

• Compute actual revenue loss as determined in (A) for

past 6 months or less if duration of leakage < 6

months

• Based on above, compute average monthly loss

• Project average monthly loss for next 12 months to

determine what would have been lost if leakage was

not plugged.

Approach B:

• Determine revenue trend and projections for affected

revenue stream before the leakage was plugged and

compare against new trend and projections

• After the fix over a period of one month. The

difference is then projected for 6 months and reported

as savings gained from fixing the leakage.

• Revenue saving projections will be done by RA

Manager while each operating unit will report only

quantifiable revenue savings (i.e. no projections)

where applicable.


Revenue Exposure

Revenue Forgone

Revenue Recovered/Reporting Error

Revenue Loss

Revenue Savings –Exposure

• Definition

This represents revenue exposures prevented

as a result of RA mitigation efforts to plug

potential leakage situation i.e. revenues that

could have been lost if the particular exposure

was not identified and plugged


When a revenue exposure has been

effectively plugged, the revenue exposure

savings from such mitigations efforts shall be

recognized as – Total Revenue Exposure

(revenues at risk) divided by X. Where X is

number of days between date exposures was

identified and date exposure was closed.


Revenue Exposure

Revenue Forgone

Revenue Recovered/Reporting Error

Revenue Loss

Revenue Savings –Exposure

• Definition

Revenue Recovered

This is revenue recouped from an actual revenue

loss situation e.g. supplementary invoicing of

partners following traffic reconciliations, arrears

billing for postpaid and increase in revenues due

to reduction in revenues foregone.

Reporting Errors

This relates to under/over statement of revenues

due to error of omission /commission identified by

RA e.g. understatement of minutes of use due to

delayed / unprocessed / damaged TT-files

impacting interconnect traffic.


Revenue Recovered:

Actual amount initial lost and not accounted for in

the daily revenue report but subsequently collected

and captured in the books of accounts.

Reporting Error:

Actual value by with the affected revenue stream

was impacted.


Thank you!

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Category:	Data & Analytics
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