Revenue assurance in India: growing in importance and relevance

Date: August 23, 2010
Pages: 11
US$ 895.00
Publisher: Ovum
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: R639D345096EN

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Revenue assurance in India: growing in importance and relevance
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.

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
Early and nascent
Evolution of the RA partnership model
Future outlook
Expansion as the market evolves


Table 1: Key characteristics of a revenue assurance function


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