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Symmetricom Flunks Sums

NTP time synchronization is not the most obvious way to eliminate leakages. However, Symmetricom makes some convincing arguments about how enforcing consistent network time can improve the bottom line. Whilst it is not the job of the revenue assurance manager to take the lead in purchasing solutions of this type, there is no harm in them understanding the benefits, so downloading and reading the relevant content from Symmetricom’s website is a worthwhile thing to do. But Symmetricom let themselves down, by failing their own promise of accuracy. This is from their “case study”:

TYPICAL MOBILE SERVICE PROVIDER REVENUES $50b per annum

POTENTIAL REVENUE LEAKAGE DUE TO IP/CDR MISMATCH @ 0.005% = $25,000,000 per annum

The Return on Investment in Symmetricom Carrier Class NTP can be measured in days.

The same example can also be found in their “white paper”:

Total Revenue per year (medium carrier): $50 B

CDR Leakage (%) due to misaligned billing and logging services: 0.005

Revenue Loss per year: $25 M

$50 B is the same as $50,000 M. $50,000M*0.005% = $50,000M*0.00005 = $2.5M. In other words, Symmetricom got their sums wrong by a factor of 10, grossly exaggerating the revenue benefits as a result. Not very impressive for a business wanting to sell enhanced assurance on the basis of increased precision.

Eric Priezkalns
Eric Priezkalnshttp://revenueprotect.com

During his career, Eric has been a Director of Risk Management for a national telco, the Chief Executive of the Risk & Assurance Group, a Chief Marketing Officer for a software business, a consultant, a public speaker and the publisher of Commsrisk since its launch in 2006. Look here for more about the history of Commsrisk and the role played by Eric.

The comms providers that Eric has worked for include Qatar Telecom, Cable & Wireless, T‑Mobile, Sky and Worldcom. In addition to his proficiency at speaking about the current scamdemic, Eric is also a qualified chartered accountant and a subject matter expert in consumer protection, enterprise risk management, fraud prevention, data integrity and billing accuracy. Eric was the lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He can be reached through the contact form on this website.

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