$39.89bn Telecom Revenue Loss To Fraud For Discussion

Global Voice Group (GVG) has disclosed that it will discuss and proffer actionable solutions to $39.89billion global revenue loss to fraud in the telecom industry.

Speaking ahead of the 2023 RegTech Africa Conference with the theme: ‘Elevating National Policy on Financial Inclusion, Consumer Protection and Cybersecurity’, scheduled to hold between 24th – 26th May, 2023 in Lagos-Nigeria, GVG, the major provider of world-class IT solutions to governments and regulatory authorities, said telecom businesses cannot afford to lose more money on their billing.

LEADERSHIP reports that the total revenue loss due to fraud in the telecom industry was $39.89 billion, with additional 28 billion lost globally in uncollected revenue, according to the CFCA Global Telecommunications Fraud Loss Survey in 2021.

With razor-thin margins, fierce competition, and constant attempts by fraudsters to swindle companies, the operators cannot overbill their customers because it will lead to disputes and possible base churn.

However, at the 2023 Regtech Africa Conference, GVG said, it would share insights on how revenue assurance in telecom ensures that the company bills its clients as per the commercial agreement.

Speaking, the chief executive officer, RegTech Media, Cyril Okoroigwe, explained that, telecom billing is a complex process that comprises interrelated technologies and processes working together to provide a seamless service.

The system he said needs to consider tariff rates, special rates, discounts, special services, corporate rates, and more – all at the same time.

Regulatory Technology (RegTech), is becoming a key consideration in many African countries, saying, the benefits of the company include fraud detection and transaction monitoring as well as increasing telecom tax collections.

“There is a range of avenues for revenue leakage in telecom operations. Operators that rely solely on lower rates to beat the competition may not survive in the long term. Those that invest in revenue assurance technology solutions will not only provide great service but also raise their revenue by plugging in the leaks.

“Telecom operators need to match their revenue assurance processes with the technologies of the future, such as 5G. Current 5G deployments are not widespread and telecom operators can absorb any losses.

“However, given the rate of 5G adoption, telecom companies need to start modernising their revenue assurance processes now,” Okoroigwe said.

He said smart businesses must prepare their systems to automate every touchpoint, including billing, charging policies, and fraud detection.

He further said, traditional revenue assurance systems are of little value because they alert when the damage is already done.

He explained that, with the sheer volume and velocity of data in 5G, there is a need to act in real time, adding that, a unified fast data platform should address revenue assurance needs during the entire life cycle in one seamless motion.