Revenue assurance in India: growing in importance and relevance

August 2010 | 11 pages | ID: R639D345096EN
Ovum

Abstracts

Revenue leakage is one of the major challenges in any industry that handles high volumes of customers or subscribers. In the Indian telecoms sector, the significant increase in the number of third-party vendors in operators’ value chains has introduced a number of variables and increased the risk of revenue leakage. Given the economic pressures due to the ultra-competitive Indian market, revenue assurance (RA) has assumed a critical role. Although Indian operators currently see RA as a function that minimizes revenue leakage, we believe that investment in RA will yield significant benefits only when the scope of the RA function is expanded to cover telcos’ entire revenue chain.

Contents

Executive summary
In a nutshell
Ovum view
Key messages
Growth in RA is inversely proportional to industry growth
Interdepartmental collaboration within telcos is a challenge
RA function seen as a profit center but not for long
External vendors are helping the finance functions of operators manage RA activities
Importance of revenue assurance in India
Pressure to increase revenues and margins is key driver
The capabilities of the RA function are underestimated
Reporting structures
RA partnership model
Maturity
Early and nascent
Growing
Established
Evolution of the RA partnership model
Future outlook
Expansion as the market evolves
Appendix
Methodology

List Of Tables

LIST OF TABLES

Table 1: Key characteristics of a revenue assurance function

List Of Figures

LIST OF FIGURES

Figure 1: Key revenue assurance activities for a mobile operator
Figure 2: Evolution of revenue assurance in maturing companies