A Need for New Revenue Assurance Approach
Revenue and business assurance continues to be a priority for operators in the telecommunications space and beyond, especially in the arrival of new technologies like 5G and Internet of Things (IoT).
The advent of digital disruption has compelled communication service providers (CSPs) to devise innovative strategies aimed at safeguarding their revenue streams in the face of significant change.
Eliminating revenue risk and reducing revenue leakage through appropriate business assurance measures is critical to ensure sustainable financial performance for any business. In an increasingly competitive and disruptive business environment, this not only ensures ongoing profitability but is a vital component of remaining competitive.
Currently, 5G subscriptions account for 10.7% of the total global mobile subscriptions, and this figure is projected to increase to 16% by the end of 2023, reaching a subscriber base of 1.77 billion, according to the latest statistics from Global mobile Supplier Association (GSA). The deployment of 5G networks brings about significant opportunities and challenges, making it crucial for operators to ensure robust revenue and business assurance practices.
6 Key Trends of Revenue Assurance in 5G
The adoption of 5G technology is bringing about significant changes in the global revenue assurance market for telecom companies.
Here are key trends defining the new demand under the influence of 5G:
#1 Monetization of New Services and Use Cases
5G enables a wide range of new services and use cases, such as enhanced mobile broadband, IoT applications, and mission-critical communications. Telecom companies need to develop effective revenue assurance strategies to monetize these services and ensure accurate billing for different types of usage and subscription models associated with 5G.
#2 Complex Service Bundling and Pricing Models
With 5G, telecom companies are offering bundled services and innovative pricing models, such as shared data plans, service tiers, and dynamic pricing based on network conditions. Revenue assurance must adapt to these complexities and ensure accurate billing, revenue allocation, and revenue recognition across multiple services and pricing structures.
#3 Real Time Rating and Charging
5G’s ultra-low latency and high-speed capabilities open doors for real time rating and charging. Telecom companies can leverage revenue assurance solutions to accurately measure and charge for usage in real-time, enabling dynamic pricing, on-demand services, and instant revenue recognition. Real-time revenue assurance becomes crucial to prevent revenue leakage and ensure optimal monetization of 5G services.
#4 Network Slicing and Quality Assurance
5G introduces network slicing, allowing operators to create virtualized, customized network instances for different applications and user groups. Revenue assurance plays a vital role in ensuring the quality of service (QoS) and quality of experience (QoE) for each network slice. This includes monitoring performance metrics, enforcing service level agreements (SLAs), and validating revenue associated with specific network slices.
#5 Enhanced Security and Fraud Management
5G brings a massive increase in connected devices, data volumes, and potential vulnerabilities. Revenue assurance must address the unique security challenges associated with 5G, such as securing network functions, preventing SIM card fraud, protecting IoT devices, and ensuring data privacy. Robust security measures and fraud management practices become essential to mitigate risks and protect revenue streams.
#6 Data Driven Decision Making and Predictive Analytics
With the vast amount of data generated by 5G networks, revenue assurance can leverage advanced data analytics and predictive models to detect anomalies, identify revenue leakage patterns, and optimize revenue streams. Telecom companies can proactively address revenue risks, predict customer behavior, and make data driven decision making for revenue assurance and business growth.
Effective Revenue Assurance Solutions in an Evolving Landscape
Proactive revenue and business assurance solutions are an essential part of an optimized business system for organizations in the telecommunications space and beyond. They not only reduce the risk of revenue leakage through inefficient operations, but also ensure regulatory compliance that can lead to millions of dollars of savings in avoided fines.
Neural Technologies’ advanced machine learning solutions are designed to provide revenue and business assurance protection that adapts to this changing landscape, providing both clear oversight and a flexible solution that can evolve with changing market conditions. The automated functionality means continuous and real time monitoring that allows users to quickly identify and eliminate revenue risks.
Revenue assurance will continue to be a key priority for telecommunication operators in the years ahead, facing the growing pressures of a competitive and high-volume data landscape.