Vodafone UK Admits to Revenue Share Errors

Revenue share should be pretty simple, really. You sell something, you take a percentage of the money made, and you give that percentage to somebody else. Problems occur if you cannot keep a track of what you sold. A few weeks ago I blogged about how Vodafone UK had failed to process SMS text message votes for an interactive tv show on a timely basis, and how that would also have an impact on revenue sharing partners. This weekend there was a news story that Vodafone UK has admitted to problems with reporting of revenue share. Stories like that tend should cause concern for any business in a revenue share relationship with Vodafone. The resources Vodafone employs to assure revenue share will be stretched even further by the challenges involved in assuring the new advertising and search deals that Vodafone has with both Yahoo and Google. They say good relationships are based on trust, and bad ones on vigilance. If Vodafone are unable to keep track of what they owe, their business partners would be well advised to stop trusting and start auditing.

Eric Priezkalns
Eric Priezkalns
Eric is the Editor of Commsrisk. Look here for more about the history of Commsrisk and the role played by Eric.

Eric is also the Chief Executive of the Risk & Assurance Group (RAG), a global association of professionals working in risk management and business assurance for communications providers.

Previously Eric was Director of Risk Management for Qatar Telecom and he has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and other telcos. He was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.