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Carriers "leaked" $58B due to faulty billing systems

Posted: , by Michael H.

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Mobile carriers process a ton of data, really absurd amounts of data, and in the rush to make systems faster and more capable of providing large amounts of bandwidth for users, apparently there are some leaks in the system that are causing some big losses for carriers. According to a new report by Juniper Research, carriers lost $58 billion in 2011 because of faulty billing systems, that adds up to 6% of revenues for all mobile operators worldwide. 

Apparently, billing systems created by carriers just can't keep up with the massive amounts of data being processed. Carriers have focused so much on making the data move quickly and reliably, that they haven't spent enough to put in place proper systems to accurately track how the data is processed. This leads to a much bigger opportunity for "leaks" from fraudulent activity or bad debt. 

According to the report, if carriers don't put in place reforms to better track usage and billing, what is now a problem accounting for 6% of global mobile revenue could grow 5 times bigger by 2016. However, with proper fixes like better automated systems, and a single repository to better track data in real time, the leakages could drop to around 4% in the same timeframe.  

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posted on 28 Mar 2012, 23:23 1

1. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)

This is what happens when an architecture is deployed for X volume (investment constraints), and then actual volume grows to Y and is headed for Z. VZW is probably the largest poster child for the concept. Not blaming VZW, it is what it is. They are scrambling to implement an architecture that allows them to grow as fast as the users do.

posted on 29 Mar 2012, 00:23

2. StringCheese01 (Posts: 64; Member since: 27 Jan 2012)


posted on 29 Mar 2012, 00:36

3. ps316 (Posts: 19; Member since: 19 Oct 2010)

Still they made lot of money...

posted on 29 Mar 2012, 00:57

4. Pings (Posts: 304; Member since: 19 Dec 2008)

Was this the .01/.001 over charge thing?

posted on 29 Mar 2012, 01:50

5. MorePhonesThanNeeded (Posts: 645; Member since: 23 Oct 2011)

A study talking about how much the carriers leaked? Nice, what about the amount of stolen money from customers bills, do a study on that. That stuff is weird as you notice that your bill will all of a sudden start creeping upward ever so slowly for unknown reasons. Some people pay their bills without a second thought so lots of ill gotten money goes to carriers but here we see number crunchers showing us how much money carriers lost last year because of overwhelmed calculation systems and it was 6% of their overall revenue...gasp.

posted on 29 Mar 2012, 11:14

7. BlacRaZredge (Posts: 36; Member since: 06 Mar 2012)

and if you do catch said overages, you can only get a month back, 3 at most. someone needs to start a petition to correct injustice to customers. people have been doing it with everything else why not this.

posted on 29 Mar 2012, 03:54

6. darktranquillity (Posts: 284; Member since: 28 Feb 2012)

Exclude indian carriers, oh my gosh they know how to...crap

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