How Infozech helped one of the telecom operators in mitigating the margin pressures?
Over the last 2 years, Telecom operators in India have faced significant pressures on margins due to a new entrant – who brought down end user tariffs and disrupted the market. While some operators have consolidated, some others have had to shut down. In this environment, operators have been looking at every possibility to bring down costs, which can help them sustain and improve margins.
One significant cost operators have is on Infrastructure – payments to tower companies for space and power. They spend millions of dollars every month on this. Since most of the sites are remote, with limited visibility it becomes hard to verify the basis of rentals for space and power. Today Operators make millions of dollars of payments after verifying the numbers on an excel sheet.
Telecom operators are paying millions of dollars every month for tower assets – both for the physical tower and energy. Complex agreements and assets deployed on site form the primary basis of expenditure computations. Operator teams are validating and verifying tower companies bills manually using excels or adhoc systems to partially suit the need. However, the quantum of cost involved needs robust and specialized mechanism for far greater analysis, detailing, understanding of historical data patterns, dispute management etc. Infozech’s iRecon empowers CFOs and their teams to quickly get into the details of present and past bills, tariffs, and then be able to identify non-compliant items needing attention
Before making each payment senior teams in Finance and SCM used to spend countless hours and nights pouring over heaps of Excel sheets trying to validate the bills and making sure all amounts are justified.
Challenge – Inadequate mechanism to validate bills:
Infozech’s solution empowered Operator teams to get greater analysis, understanding of historical data patterns and dispute management. It assisted CFO and SCM teams to quickly get into the details of present and past bills, tariffs, and then be able to identify non-compliant items needing attention.
Solution- Automated Invoice Validation System
- Validate their Assets
- Tower-co contracts in a structured and audit-able database
This led to the Operator identifying over billing of about $ 3 million in the first six months it was put in deployment. “I am thrilled to share the value addition devised by Infozech’s Bill Validation Solution”, the SCM head of the leading operator said.
Benefits consumed by existing customers:
A) Financial Excellence: iRecon is helping of the leading telecom operators across globe in by tapping:
- 5% cost overruns: Telecom Operators are able to control cost overruns and safeguard their bottom line month-on-month.
- 4% unclaimed liability: Telecom Operators are able to create better financial provisions to accommodate retrospective bills and debit notes in future.
- Site wise complete tracking of Credit/Debit notes for IP partners
B) Process Improvement:
- Transparent, consistent & person independent billing validation processes.
- Bill settlement and dispute management teams enabled with artefacts and exact reasons for deviations
- Flexible & configurable, rule-based billing logic layer to support current MSA as well as future MSA with minimal changes and faster turnaround.
C) Audit Assistance:
Maintains historical information as & when any data-set changes, for easy and quick access for reference & verification.
Bringing up the intelligence level by 4 key principles:
Tenancy Ratio Trend Graph Analysis:
Insights captured by Infozech support team helps customers quickly identify sites without dispute and sites with dispute so that action can be taken timely.
Infozech’s iRecon solution “GUARANTEE QUANTIFIABLE ROI” with first run!