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Progress of RAFM in Middle East (Focus on GCC Countries)
10th WeDo Conference
GCC is the regional intergovernmental political and economic union consisting of the following six countries
Bahrain
Kuwait
Qatar
Saudi Arabia
UAE
Oman
Strong economic conditions and increasing demand have attracted the substantial investments in Telecom Sector in last few decades
1.34 2.2
31
9.33.2
0
10
20
30
40
Bahrain Kuwait Qatar Saudi UAE Oman
Population (million)
29
71
146
53 65 44
-
50
100
150
200
Bahrain Kuwait Qatar Saudi UAE Oman
Per Capita ($thousands)
175%205%
181% 167% 181%148%
0%
50%
100%
150%
200%
250%
Bahrain Kuwait Qatar Saudi UAE Oman
Mobile Voice Penetration
129%154%
128% 123% 117% 116%
0%
50%
100%
150%
200%
Bahrain Kuwait Qatar Saudi UAE Oman
Mobile BB Penetration
GCC market has shown significant development in Telecom Industry over the last two decades
Emerging Market Impact
Many Telecoms launched operations in last few years
Speedy launch of new Products and Services
Revenue Assurance considered as bottleneck for time to market
Rapid Technological Advancement
Among first to adopt latest technologies in the world
Early adoption of 4G, Advance LTE, Cloud Service, etc.
Governments to introduce Network Function Virtualization
Evolving Regulatory Controls
Introducing several regulations supporting controls in market
Aggressively offering licenses to operators and MVNOs
Reviewing feasibilities of National Broadband Network
Continued. Since last couple of decades GCC market has scored significant development in Telecom
Increasing competition in Market
Profit margins are under pressure
Stagnant legacy revenue and cannibalization in Voice, SMS etc.
Market ARPUs rapidly decreasing
High Expat Population Impact
Approx. 50% in Bahrain and 90% in UAE are expatriate work force
Substantial earnings via International & roaming traffic
Significant risk of customers acquisition and defaults
Progress of Centralized Credit Bureaus
Broadening scope to cover Telecom companies’ debts Credit Bureaus just getting introduced in some countries
Introduction of various electronic/online collection channels
Cross border blacklisting of defaulters
Key challenges RAFM is facing in GCC countries
Population MixDynamics
High bad debts and late payments issues
Require extensive subscription validation and reviews
High circulation of illegal call selling
Weak Empowerment
Unable to obtain significant sponsorship from C-Suite
Restricted to operational levels in organization
Confused organizational positioning
Difficulties in recovery of leakages & frauds
Processes and tools are not mature enough
Late resolution of issues
Strong sponsorship needed for execution
Key challenges RAFM is facing in GCC countries
Collaboration with Business Remains a Challenge
Limited cross functional integration
Teams restricted to fault finding approach
Business focused departments adopt defensive approach
Difficult Buy-in of recommendation by outsourced vendors
Investments required in Key Skills
Subject matter skills for latest technology are limited
Require multiple skills including, commercial, accounting etc.
Inadequate team size causing undue pressure on teams
Major issues Telecom companies are facing, causing enormous revenue leakages
Increasing Popularity of Handset Packages
The concept was launched approx. 5 years ago
Smart phones are high value devices, a significant part of the revenues
Substantial number of defaults and acquisition fraud cases
High Termination Rates Leading to SIM BOXING
Termination rates for international traffic are relatively high
Lower/free rates for local termination
Generally weak network components to prevent the attempts
Interconnect & Roaming leakages
High voice and data rates increase the quantum of damage
Limited Data Roaming packages with partners
Increasing threats of IRSF & PRS fraud
New transformationalprojects
Increase revenue exposures and delays in mitigations
Redefining and broadening the scope of work
Extensive trainings, UATs and stabilization needed
Upcoming IFRS affecting revenue recognition
Significant changes in recognition & procedures
Extensive changes in IT & Billing systems
Changes in commercial contracts & business rules
Retail Sales & Distribution Commissions
Trend of outsourcing retail and distribution services
Significant value of subscription frauds experienced
Irregularities in business and regulatory rules compliance
Major issues Telecom companies are facing, causing enormous revenue leakages - 2
Up Coming Challenges for RAFM in near future
Data & Content Services
Social media
Mobile applications
Mobile money
Video on demand
Cloud services
Shift from traditional methodology is inevitable
Risk profile and categories need to be redefined
More involvement in end-to-end product life cycle
Need of new skill sets and training for teams
Upcoming Next Generation Services Impact on RAFM functions
VIVA Bahrain selected WeDo to deploy RAFM Tool, so far Phase 1 has been successfully deployed and operational
Solution was meeting all the business and technical requirements
Phase 1 focusing Wholesale & Roaming has been successfully deployed
System training, UAT and post implementation issues were swiftly completed
Significant amount of leakages have been deducted to date
Thank You