Inefficient Systems Cause Revenue Loss for Telcos

by Sharon Lobo    Jan 25, 2010

primary causes of revenue leakage in telcos is related to inefficiency in
systems and processes combined with fraudulent activities. Avi Basu, President
and Chief Executive of Connectiva Systems explains more about revenue leakage
in telcos and the solution his company offers to tackle this issue.

Could you give us an overview of Connectiva’s operations in India?

Connectiva runs all its research and development initiatives from its global
innovation center and delivery in India. Located in the heart of the
IT-hub in Kolkata, the Indian operation develops cutting-edge solutions for
communication service providers (CSP) across the globe. Headed by industry
veterans, the Indian operation has been experiencing rapid growth in terms of
employee strength and has over 400 people today.

What are the various solutions you provide to Indian telecom operators?

Connectiva is a leading provider of analytics based enterprise revenue
assurance and fraud management solution for CSPs across the world. Connectiva
offers a range of business optimization solutions built on an open standards
based analytics framework. Our two major product offerings are Connectiva
AFFIRM for end-to-end revenue assurance and network audit and Connectiva SENTRY
for real-time fraud detection and proactive prevention. In addition, Connectiva
also provides strategy consulting services for CSPs.

Our solutions are the industry’s first next generation revenue management
solutions and are capable of interfacing with virtually any number of data
sources, supporting varied data types and formats and processing huge volumes
of data. While Connectiva AFFIRM is a comprehensive solution that enables
initial risk assessment, monitoring of control points, reporting and case management
that addresses every generic requirement of telecom revenue chain assurance,
Connectiva SENTRY minimizes an operator’s exposure and potential liabilities by
continuously monitoring usage behavior throughout the customer lifecycle to
identify fraudulent patterns. The solution s proactive detection capabilities
prevents losses across varied lines of businesses and products ensuring end to
end coverage for all kinds of CSPs.

Tell us more about revenue leakage and how does Connectiva enable telecom operators
to prevent it?

The primary causes of revenue leakage in telcos is related to inefficiency in
systems and processes combined with fraudulent activities. Uncharged traffic,
inconsistent rating and erroneous billing all contribute to leakage. The biggest
problem areas are in data collection and errors in records disparate network
elements generate records and data in various formats and types and mediation
systems may not process them accurately. On the other hand, errors in order
management and provisioning systems allow subscribers to use services without
being charged for or even throw up inconsistent customer records.

An efficient revenue assurance program is therefore required to keep a check on
the entire revenue stream network through billing as well as collections.
Revenue assurance must continually audit the network elements to ensure that
records are generated and captured, collected and processed by mediation, rated
accurately and free from invoicing errors. Connectiva offers solutions that
holistically identifies, corrects and prevents revenue leakage across the
entire revenue chain of a telecom operator - from initial order to final
settlement with customers and partners and allows operators to monitor the
integrity of their assurance cycle.

What is the value proposition Connectiva offers its customers as compared to

Connectiva’s product suite is the industry’s first and only integrated revenue
assurance and Fraud solution. The architecture of this integrated platform
offers a high degree of scalability and flexibility, ensuring quick deployment
and rapid ROI. The solution suite is designed to scale both horizontally across
subscriber count and vertically across number of functional modules. This
allows for complete reuse of hardware and software components lowering over-all

In addition, our solutions are capable of handling very large volumes of data.
For example, they  process more than 8 Billion records per day in the
largest revenue assurance deployment in the world. Our solutions also excel in geographically
dispersed operations where revenue assurance needs to be deployed at group and
opco levels with ability to control extent of aggregation and decentralization.
The solution features advanced analytical engines that enable proactive loss
minimization capabilities and also enable What-If Scenario analysis.

Could you give a few examples of how Indian Telecom operators have benefited
from Connectiva’s solution?

Connectiva’s solutions have been chosen by some of the biggest telecom
operators in India these span
a wide spectrum ranging from large operators like Bharti, BSNL, Idea Cellular
to mid-sized and Greenfield
operators. Several of these deployments are live and have realized tens of
millions of dollars in savings. In one deployment instance, Connectiva’s solution
has been instrumental in identifying leakages in excess of US $10 million on an
annualized basis in addition to helping reduce the revenue assurance by more
than 200 percent.