Revenue leakage up in ME

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By  Published  September 15, 2006

The levels of revenue loss for telecom operators have increased in the Middle East but fallen in Europe and the Americas, according to a new report.

Average revenue leakage across global telecommunications operators reached US$176 billion in 2006, equivalent to 12.1% of turnover, compared to 11.6% in 2005, according to the report from Subex Azure — a company which sells revenue maximisation solutions for telecom operators — and telecom analyst firm Analysys.

Breakdown of revenue leakage for specific regions was not provided, but the company did say that operators in the Middle East and Africa (MEA) “continue to struggle in the containment of revenue leakage.”

Fraud was found to be the largest area of revenue leakage, according to the report, accounting for 2.9% of turnover, with other increases in revenue leakage attributed to credit management, incorrect service usage data and interconnect/ partner payment.

The report did show, however, that more operators were now taking steps at the product planning stage to reduce revenue leakage.

“From this year’s research it is clear that operators are more concerned about all sources of revenue leakage. It is apparent that revenue assurance has become much more of a board-level issue,” said Danny Dicks, principal analyst at Analysys.

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