This document discusses the challenges facing revenue assurance departments due to changes in the telecommunications market from increasing data usage, smartphone adoption, and the rollout of 4G LTE networks. It provides an overview of these trends, their impact on revenue streams and risks. The document also summarizes the revenue assurance practices of VIVO Brazil, including their control review process and challenges in ensuring controls keep pace with new technologies, services, and pricing models. An example use case demonstrates the need for centralized insights across different risk and assurance tools to manage risks and profitability for new services like LTE.

1. © 2013 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA
The Impact of Data Traffic
Explosion and LTE on
Revenue Assurance and Risk.
Rodrigo Otávio Moreira Gonçalves - VIVO Brazil
Marcos Teixeira - cVidya
September 17, 2013
IBC Conference

2. 2
Agenda
 Trends that Changed the Telecom Market
– Challenges & Expectations from the
Revenue Assurance Department
 Brazil Telecom Market
 Revenue Assurance at VIVO
– Past & Current Challenges and Needs
– Future Challenges and Needs
2

3. 3
The Trends That Changed The Telecom World
The combination of Smartphones and LTE
 Changed the service consumption
patterns of users
 Changed the underlying technologies
 Resulted in new price plans
 Changed the structure of the revenue
streams within the operator
 Introduced significant risks in leakages
& fraud

4. 4
4G LTE World Coverage

5. 5
Data Traffic Explosion

6. 6
Challenges
 Business Approach & Analytical Capabilities
– How to raise the operational level to business levels?
– How to improve profitability?
– How to enhance the expertise in and knowledge of RA?
– How do I achieve analytical capabilities as part of the RA solution and utilize existing data for
other uses?
 New Arenas (Mobile Money, M2M, Mobile Data, Cloud)
 How to limit exposure to revenue leakage & costs from lost opportunities due to the
increasing number of services and complexity of networks? Real-time Provisioning &
Huge Volumes of Information
– How to adapt the RA operation to handle real-time provisioning and charging?
– How to handle the “Data Traffic Explosion”?

7. 7
The Need From RA Departments – To Be More…
 Be prepared to handle threats and challenges
 Be ready for upcoming technologies and products
 Assess risks of services & products before launch
 Assume more methodical approaches to prevent leakage
 Achieve more using fewer resources
 Align with company’s business goals
 Include recovery as part of the RA domain

8. 8
Brazilian Telecommunication Market
 Current Figures (as of end of 2012)
– Market still under expansion (mainly for Mobile, Broadband, Internet and
Cable TV users)
– 267M Mobile
– 44M Fixed
– 17M Broadband
– 16M Cable TV
– 94M Internet Users
– 3G partially deployed among the country, 4G just started (2013)
 Current Figures for Vivo (as of end of 2012)
– Leader in Mobile Market (around 28% as of 2Q2013), with 76M mobiles,
USD 10B FY Net Income, ARPU BRL 22.6 and MOU 126

9. 9
Revenue Assurance At Vivo
 Innovation in Managing & Expanding RA Controls
– Creating a consistent system for implementing strategy
– Implementing methodological approaches based on risk assessment
– Ensuring that RA-controls are part of the launch cycle & planning of new services
 Key Success Factors
– RA Control Efficiency - actual relevance of the controls and ensured ROI during the
implementation phase. Continuous review of control rules and implementation strategies
– Knowledge & Maturity - key personnel with seniority and in-depth knowledge of Revenue
Assurance
– Partnerships - between RA, IT and Vendor teams for leveraging monetary results
– Control Strategy - establishing a process vs. simply implementing new controls
Main Challenges

10. 10
Control Review Process
Lab
Testing Feasibility
(Process & controls)
Deliverable:
Control Spec
Owner: RA
Development Production
Optimization,
Pre-implementation
Deliverable:
Control Rules,
Preliminary Results
Owner: RA/ IT
Automation,
Execution
Deliverables:
Alarms, Cases,
Reports, etc.
Owner: IT
Up to 3 Months Up to 3 Months Ready To Go!

11. 11
Control Review Process
 New Products / Technologies
– LTE, Quad Play, Market Aggressiveness (lower margins)
– Shorter time-to-market with increased risks
– New technologies with aggressive schedule for coverage
– Knowledge gap within the company (IT, Engineer, RA, Fraud
Management, etc.)
– New system & network elements adding much more complexity for
existing controls
 Thinking Ahead - Internally
– Improve the relationships between the different areas within the
company
– IT, commercial, regulatory, marketing and other departments
– Improving communications with top management
 Continuous Review…
– Always revisiting controls/processes with focus on monetary results

12. 12
New “Old” Concerns…
 Data Services/Products Usage – Surpassing Traditional Voice and
Messaging
– The biggest concerns are in RA and risk areas
– Knowledge & skills in all aspects of all new data services must be quickly
improved and enhanced
– Operators are relaying on vendors
– For domain expertise & experience for assistance
– For adding value
– For reducing risk coverage gaps

13. 13
LTE Challenges
 New Pricing Models
– Do we measure usage correctly?
– Are we applying & charging according to the appropriate policy?
 Complexity Challenges (mix of 2G, 3G and 4G)
– Data is stored in many different locations (such as HLR and HSS)
– Non-uniform network technology coverage - devices need to select and
“jump” between technologies…
 Rollout Challenges
– Integrity of porting data to new network elements
– Understanding and collecting data from new elements

14. 14
Who Moved My Cheese?!
 CSPs needs to update RA
priorities according to changing
business models
– New Consumption Patterns
– New Services
– New Products
– New Pricing Models
– New Charging Policies

15. 15
Use Case Example – LTE Scenario
 High risk is detected in MM Risk for LTE LOB
 Out-of-bundle in specific data package is identified
by MoneyMap
 Low margins are detected by the Margin Analysis
Module
 Service abuse and fraudulent activities are identified
by FraudView
 Centralized business & financial insights on LTE
service
– Monetary losses (LTE) from all products
– Recommendations and future plans for risk reduction
– Profitability insights of LTE for different segmentations

16. THANK YOU!
www.cvidya.com