New research shows Communications Service Providers (CSPs) and their enterprise customers would benefit tremendously from real-time transparency and spend control.
The new report from Stratecast, a division of Frost & Sullivan, says a perfect storm of roaming workforces, new devices and data services combined with a lack of spending visibility for enterprises is resulting in widespread bill shock. That bill shock costs CSPs millions of dollars each month in billing disputes and subsequent bad debt write-offs.
“CSPs are exposed to unpredictable financial risk when their enterprise customers dispute bills," said Karl Whitelock, director of OSS/BSS strategy at Stratecast. “ Also, the dispute resolution process can be protracted, and there’s no guarantee that individuals or entire enterprises won’t churn to another CSP at the end of the process."
The enterprise sector signs lucrative long-term contracts with CSPs that deliver up to 40 percent of total annual revenue. But on average, between 10 percent and 15 percent of this revenue is being written off by CSPs every month due to disputed roaming and data charges that could be avoided if enterprises had a sophisticated real-time view of their spending. This percentage equates to more than $20 million (U.S.) for 60 percent of the CSPs interviewed.
MATRIXX Software said the research validates the growing need for CSPs to implement sophisticated real-time charging and credit control for traditional postpaid market segments such as enterprise customers. By implementing a real-time charging and spend control solution for enterprises, CSPs can minimize bad debt write-offs, improve critical KPIs, and decrease enterprise customer churn.
“It’s clear from Stratecast’s research that real-time enterprise spend controls would offer tremendous financial benefits to CSPs and their enterprise customers," said Dave Labuda, founder and CEO of MATRIXX Software. “A real-time view of corporate spending would offer enterprises the information they need to make informed budget decisions, avoid billing disputes and more accurately predict communications costs."