Declining capex investments combined with new revenue streams and the introduction of next-gen services are accelerating wireless operator revenue leakage risks, according to a new industry survey published by assurance, tax and advisory services firm PricewaterhouseCoopers. After analyzing 18 large operators across the globe, PwC determined that carriers' revenue management spending is primarily dedicated to minimizing leakage within core billing of primary service networks, and argues that companies must reexamine their revenue management strategies across all of their customer and content partner touchpoints. While 56 percent of respondents said more than 90 percent of their annualized revenue stream is subject to revenue management program review, two thirds have 10 or fewer resources dedicated per $1 billion of revenue--moreover, these resources emphasize billing and servicing of network activities, while PwC recommends that carriers expand the scope and scale of their revenue management efforts to embrace R&D, sales and marketing functions as well.
PricewaterhouseCoopers notes that on average, mobile data revenues increased by more than 50 percent year-over-year for all responding companies--of course, these new revenue streams and content partnerships are increasing billing complexities and introducing additional risks of revenue loss. Respondents to the PwC survey pointed to unbilled access charges for content like mobile games and media as the leading opportunity for revenue management projects. "In this multi-service era, characterized by a maze of different pricing plans, rapid introduction of next-generation services and content, tighter regulations and zero customer tolerance for billing errors, carriers need to reevaluate their revenue management strategies across their own enterprise and with their content partners," said PricewaterhouseCoopers' global communications industry leader Paul Rees in a prepared statement. "Carriers need to ensure that they have the strategies and tools in place to capture all mobile transactions, accurately reimburse third-party partners and properly bill the consumer."
For more on the PricewaterhouseCoopers report:
- read this release [1]
Links:
[1] http://www.fiercewireless.com/press-releases/survey-unbilled-data-charges-top-revenue-loss-concerns