According to report co-author Dr Windsor Holden, the survey of the mobile telecoms industry found that, as operators have been obliged to integrate an ever-expanding array of devices and to simultaneously manage a surge in cellular network traffic, billing systems have failed to keep pace.
As a result, Dr Holden says, companies in the industry are increasingly unable to 'accurately or efficiently capture the large volume of transactions that occur on the network.' 'The complexity has magnified the scale of revenue loss, resulting in bad debts and a greater opportunity for fraud,' Dr Holden adds.
The report, however, recommends that operators can minimise the outflows resulting from next-generation connectivity by implementing automated system solutions that provide end-to-end visibility of the revenue chain. With sustained investment, the report finds that leakage will decline to four percent of revenue in 2016, representing a net reduction of nearly $15 billion per annum compared with 2011.
According to Dr Holden, as the industry moves more aggressively into a 4G/LTE environment, telcos risk 'undermining any revenue actually earned from value-added services by continuing to not invest in appropriate business support systems,' adding that despite their initial costs, 'RA and FM systems demonstrate a strong case for return on investment.'
Juniper's report reveals other key findings, including:
'¢ Revenue leakages will continue to be relatively higher in developing regions, particularly in Africa & the Middle East
'¢ Solutions are exploiting a single repository of data to reduce TCO (Total Cost of Ownership) and are integrating a number of complementary applications as the industry moves towards Business Assurance.