Margin Assurance

Protect operating margins while retaining business agility
Overview
Assure Bottom-Line Growth and Profitability
The ever-changing technology and digital disruptions in the current telecommunication market is pushing Telcos to focus more on their bottom-line growth. However, monitoring long term profitability is a concern for most telcos. In such a scenario, Margin Assurance is imperative to maintain a solid bottom-line for Telcos engaged in delivering a complex mix of service offerings enabled by a diverse ecosystem of partners, including both traditional and digital partners.
See how our Margin Assurance solution helps businesses like yours succeed
Improve Profitability from Products
With deep insight into product portfolio, Margin Assurance can classify products as obsolete, redundant, and retained and quantify the revenue leakage for a negative margin product
Assure Margins from Partners
Validate agreements and settlements with vendors to ensure profitability. identify partners and services with a negative margin and thus avoid non-profitable partnerships
Derive visibility on Margins from Customers
It allows Telcos to visualize profitability across subscribers and track margin impacting KPIs like cost per subscriber per plan, no. of active subscribers, etc.
Visibility & Access to complex Cost/Revenue trees
End to end view of entire Cost/Revenue trees help in micro-segmented margin monitoring.
See how our Margin Assurance solution helps businesses like yours succeed
Improve Profitability from Products
With deep insight into product portfolio, Margin Assurance can classify products as obsolete, redundant, and retained and quantify the revenue leakage for a negative margin product
Assure Margins from Partners
Validate agreements and settlements with vendors to ensure profitability. identify partners and services with a negative margin and thus avoid non-profitable partnerships
Derive visibility on Margins from Customers
It allows Telcos to visualize profitability across subscribers and track margin impacting KPIs like cost per subscriber per plan, no. of active subscribers, etc.
Visibility & Access to complex Cost/Revenue trees
End to end view of entire Cost/Revenue trees help in micro-segmented margin monitoring.

Check out Margin Assurance solution features

Product/Retail Assurance
Validate the cost of products against the revenue generated to arrive at a negative margin for the products
Roaming Assurance
Compare roaming cost with retail rate Aggregate the discrepancies and quantify negative margins
Customer Assurance
Compare the direct & indirect costs involved in servicing and maintaining a customer group viz a viz the revenues earned from that group.
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Frequently Asked Questions

The ever-changing technology and digital disruptions in the current telecommunication market is pushing Telcos to focus more on their bottom-line growth. However, monitoring long term profitability is a concern for most telcos. In such a scenario, Margin Assurance is imperative to maintain a solid bottom-line for Telcos engaged in delivering a complex mix of service offerings enabled by a diverse ecosystem of partners, including both traditional and digital partners.

The important features of Margin assurance solution are:

  • tick Product assurance: Validate the cost of products against the revenue generated to arrive at a negative margin for the products
  • tick Roaming assurance: Compare roaming cost with retail rate, aggregate the discrepancies and quantify negative margins
  • tick Customer assurance: Compare the direct & indirect costs involved in servicing and maintaining a customer group viz a viz the revenues earned from that group
  • tick Partner assurance: Validate complex agreements and settlements with traditional and digital service partners to ensure profitability

The top challenges for the operator included revenue and cost allocation across the product's complexity level. The employees lacked the skill of cost bundling and cost accounting with the desired telecom skills. The major challenges are given as follows:

  • tick No Granular level visibility

    The operator lacked insights into the cost and revenue segment and faced challenges in terms of the cost allocation parameters.

  • tick High product complexity

    The long product line shows huge complexity and revenue differentiation when bundled with a set of products like the sensor device, billing and rating device, etc.

  • tick Ineffective real-time insights into profitability

    Lack of insights into the real-time performance and the product profitability parameters led to a huge revenue loss at the different segments for the operator with network and partner level engagements.

  • tick Lack of desired skills and accounting knowledge

    The operator lacked a skill set combining cost accounting with telecom domain knowledge and so was unable to calculate profitability at the user level. Observation and analysis revealed that schemes like repayment and subscription discounts led to the loss in the margins.

The ever-changing technology and digital disruptions in the current telecommunication market is pushing Telcos to focus more on their bottom-line growth. However, monitoring long term profitability is a concern for most telcos. In such a scenario, Margin Assurance is imperative to maintain a solid bottom-line for Telcos engaged in delivering a complex mix of service offerings enabled by a diverse ecosystem of partners, including both traditional and digital partners.

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