Billing errors result in revenue loss and reputational damage for telecoms providers.
Operating a worldwide testing infrastructure over the past 17 years, Araxxe has helped operators identify and prevent billing errors. Based upon our experience we see that many of these issues occur whilst subscribers are roaming.
Read the 4 episodes about:
Mobile Roaming Revenues: What is at stake?
- Episode #1 – Mobile Roaming Revenues: What is at stake?
- Episode #2 – What kind of roaming billing errors is Araxxe finding?
- Episode #3 – Billing Error Case: Option allocation error for Data transactions in roaming
- Episode #4 – How can Araxxe Help?
Episode #1 – Mobile Roaming Revenues: What’s at stake?
According to Kaleido Intelligence research, ‘total retail and wholesale roaming revenues from consumer and IoT mobile connections will exceed pre-COVID levels in 2023, reaching $30 billion and representing year-on-year growth of 40% over 2022.’
Kaleido also forecasts that roaming IoT connections will reach nearly 940 million in 2027, up from 297 million in 2021, growing at a CAGR of 22% between 2022 and 2027.
Due to billing complexity, errors occur more frequently when customers are roaming!
Episode #2 – What kind of roaming billing errors is Araxxe finding?
This graph shows the top 10 billing error cases identified whilst roaming by Araxxe’s global testing in 2022.
Missing records are the biggest source of revenue loss associated to roaming traffic. Araxxe’s testing provides evidence of roaming partners who consistently fail to provide information required to bill customers.
Araxxe’s testing highlights many cases where the charges applied to customers do not match the published rates. This can lead to reduced usages (when published rates are too high) and customer complaints (when published rates are too low).
8% of billing errors found relate to incorrect bundle allowances, the issues frequently lead to revenue loss.
Episode #3 – Billing Error Case: Option allocation error for Data transactions in roaming
The case relates to a European mobile operator with 21 million subscribers.
Their marketing team created a new option called ‘Move Everywhere’. This option is exclusively available to subscribers of one specific postpaid tariff plan. After activation of this new option, Araxxe conducted a test campaign and reported the following issue:
“Whilst Roaming in Bosnia, India and Japan, data transactions performed by Araxxe were invoiced 0€ instead of €12.50 per megabyte.”
Following an internal review, it was determined that the issue was related to an incorrect rating configuration associated with the new plan. Specifically, a data allowance applied whilst roaming in Europe had also been included within the ‘Rest of the World’ charging zone.
Assuming the error went unnoticed for twelve months, Araxxe analysts calculated a total avoided loss of €750,000.
Episode #4 – How can Araxxe Help?
Through our global infrastructure, Araxxe can verify your customers billing and experience, identify issues that cannot be identified through existing reconciliation controls.
Araxxe can identify any issues no matter where your processes fail: Missing transactions, incorrectly metered transactions, incorrectly rated transactions, delayed or incorrect notifications etc.
Araxxe provides high definition’ billing verification, utilizing our worldwide infrastructure, we can quickly and efficiently highlight errors. This allows operators to narrow the 3% – 5% error tolerance allowed with their current reconciliation systems.
We propose a zero-error tolerance because we perform ‘per transaction’ checks and we do not use any aggregated data. We believe that “small” billing errors also count! One small billing error today can be a big one tomorrow! Ten small billing errors put together do have a big financial impact!
