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| HIGHTECH
Thu, 20.10.2005
pts20051020018 Computer/Telecommunications, Products/Innovations
Billions of Euros Lost Through Mobile Data Revenue Leakage
Pioneering study by iGillottResearch outlines impact to industry
London (pts018/20.10.2005/10:22) - The premium mobile content industry is incurring billions of Euros in lost revenue through insecure transaction processing, a problem that could reach more than Eur15 billion by 2009, according to a study commissioned by Qpass, a global media commerce enabler, and authored by market strategy consultancy iGillottResearch, Inc. The study, entitled "Mobile Content Revenue Leakage: There's a Hole in the Bucket," examines the mobile content market worldwide and finds that network operators will lose a staggering 18.3 per cent of their total revenues in 2005, or more than Eur4.7 billion. By 2009, iGillottResearch estimates that revenue leakage could grow as high as 22.9 per cent, or more than Eur15 billion. The study asserts that the revenue from premium mobile content such as videos, ringtones, mobile games and wallpapers is lost due to a lack of maturity in the business systems at each stage of the purchasing and delivery process, ranging from the point of purchase to billing, collection and customer care. Ensuring transaction integrity throughout the life of the mobile content transaction through enforcement of financial policies was highlighted in the study as a key capability lacking in many existing operator business systems. Additionally, because they are unable to view all billing, rating, purchasing and customer care activity, network operators cannot ensure that revenue is accurately collected against subscriber purchases. A complete revenue assurance solution incorporates four key components, according to the study: real-time business rules enforcement, which minimises revenue leakage and subscriber fraud; transaction integrity, which provides audits and transparency of the business processes entering and exiting the system; financial integrity, which ensures secure management of financial transactions including refund and chargebacks of transactions; and business intelligence and reporting, which provides easy-to-access, centralised data about a network operator's premium services business performance. "The mobile industry scrambling to meet the demand for innovative new content applications and services, but billions are being lost through revenue leakage," said Iain Gillott, founder and president of iGillottResearch, Inc. "The wireless industry will have to address this issue to maintain their growth and financial performance, just as they had to plug the holes in the wireless voice service value chain." "The magnitude of the economic flows derived from mobile premium data have passed the tipping point and become material in terms of the financial reporting required of publicly-held companies," said Christian Lutz, general manager of Europe for Qpass "The industry will increasingly be compelled to apply rigorous financial management to these revenue streams and pay close attention to the multi-billion Euro problem of premium services revenue leakage. This is a complicated issue and one that needs to be elevated in the awareness of all participants in the premium mobile services ecosystem." To more information about the study, go to www.qpass.com/revenue_leakage.
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