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News
Issue #2002 - 21
(June 2002)
(Updated June 5, 2002)
MARKET
OUTLOOK & TRENDS
U.S. Wireless Operators Looking to
Lose $7-Billion, study says
The leading U.S. wireless
operators could lose an estimated $7-billion in revenue leakage,
according to San Francisco-based Kabira Technologies, a provider of
software solutions for convergent networks.
In its announcement, Kabira Technologies said that based upon
research from multiple third-party consultancies, information from
technology and solution partners, experience gained from deployments
in wireless networks, and using a weighting system across 32
wireless operators, its analysts have estimated that losses in the
U.S. are just under 10 percent across all revenues for those
carriers.
Revenue leakage is defined as potential revenue that cannot be
billed for services delivered to customers. Leakage tends to be
lower in single technology networks with simple service plans,
whereas leakage grows as operators combine networks and offer more
complex services.
Kabira identifies seven sources of leakage, including:
- Collection Failures: Failure to poll and collect data;
protocol mid-stream failures during collection, and failures due
to lost inventory.
- Overrun Error Logs: Unidentified records go to error logging
for later disposition. Error log overruns occur when the logging
reservoir reaches its maximum capacity and discards older error
records.
- Billing System Rejection: Bad record submission; out-of-date
billing interfaces, and modern packet types being sent to legacy
billing platforms.
Kabira’s vice president of marketing and technology strategy
Grover Righter offers wireless operators a few words of advice:
"While some operators lose more than 10 percent of revenue
through leakage, not all of that can be recaptured cost effectively.
Most wireless companies would benefit from working with solution
providers to recapture the ‘low hanging fruit’ in their
networks, which translates to about 5 percent revenue recapture as a
reasonable target."
For more information: http://www.kabira.com
MobileInfo.com’s Comments & Advisory: We
are not surprised at the level of leakage that does occur. Any effort
to plug these leaks would be welcome by network providers but we would
warn business case developers to keep in mind that 5% revenue
recapture may be high. It may require extraordinary efforts. All
industries have a built-in wastage as a business cost.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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