🇺🇸United States

Disconnect between cost inventory and billed services leaking revenue

1 verified sources

Definition

Wholesale services often exist in the network and cost inventory without a corresponding billed item, meaning traffic is carried but not invoiced. Industry Q2C studies document that weak linkage between cost services and billing inventory results in systematic under‑billing and missed charges.

Key Findings

  • Financial Impact: Telecom Q2C and inventory audits commonly recover low‑single‑digit percentages of revenue due to under‑billing; for a $50M wholesale book this equates to ~$1–2M per year in previously unbilled services.[2]
  • Frequency: Monthly
  • Root Cause: Order, rate deck and inventory data are created in different systems, with manual steps to create billing items and map them to network resources. When these mappings are missing or incomplete, services are not billed even though suppliers are paid and traffic flows.[2]

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Telecommunications Carriers.

Affected Stakeholders

Network inventory manager, Billing operations manager, Wholesale product manager, Revenue assurance manager

Deep Analysis (Premium)

Financial Impact

$1-2M annual revenue leakage on $50M wholesale book

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Current Workarounds

Ad-hoc Excel tracking of service activations vs. network records • Manual Excel fusion of rate decks with usage data • Paper logs and spreadsheet cross-checks for service matching

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Rate deck errors causing calls routed at a loss or not billed

Industry analyses of wholesale and interconnection margins indicate that routing and rate mis‑alignment can erode 3–7% of interconnect revenue; for a carrier with $100M wholesale voice revenue, this is roughly $3–7M per year.[1][7]

Overpaying suppliers due to misaligned wholesale rates and routing

Benchmarking of wholesale/interconnection cost management shows that optimized routing and contract enforcement can reduce external carrier spend by 5–15%; the delta represents prior recurring cost overrun. For a carrier buying $80M of wholesale capacity, this equals ~$4–12M per year.[1][4]

Paying erroneous carrier invoices due to weak validation against rate decks

A managed optimization program across four telecom clients recovered over $5M in a single month by identifying erroneous carrier charges and contract violations, implying similar ongoing cost exposure before remediation.[4]

Poor quality from cheapest wholesale routes causing re‑routing and credits

Industry discussions of LCR and wholesale optimization note that chasing the absolute lowest rate can erode profitability once credit issuance, re‑work, and churn are factored in; operators report quality‑related compensation and churn impacts in the low‑single‑digit percentage of wholesale revenue.[1][7]

Manual rate deck implementation delaying billing for new wholesale services

Telecom Q2C analyses highlight that lack of automation in billing order entry leads directly to delayed billing and revenue leakage; for high‑value wholesale contracts, even a 1–2 month lag can defer millions in cash inflow.[2][9]

Inefficient routing and idle capacity from poor wholesale rate visibility

Wholesale and interconnection cost studies show that better routing and contract optimization can materially increase utilization of already‑contracted capacity and improve profitability; the implicit waste can amount to several percentage points of wholesale margin annually.[1][8]

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