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The Tangible Benefits of MACH Interconnect
Publication: 04.09.2008
Interconnection is therefore a key business area for all types of operators – the costs need effective management and control, and interconnect revenues must be collected in full and on time.
MACH Interconnect brings every type of operator a number of substantial and measurable benefits.
The examples below present the financial impact over a three year period for an operator with an annual interconnection revenue of 200 million EUR.
Increased operational margins
Increased operational margins can be achieved through cost reductions and increased interconnect revenue which you can gain by outsourcing to a professional partner such as MACH. You will benefit from:
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Limited cost of ownership and investment
MACH Interconnect reduces the cost of ownership by significantly reducing initial investment requirements, also operational costs and the often substantial costs of ongoing software maintenance and upgrading. The overall cost reduction potential is around 65%, resulting in an NPV gain of 3 million EUR. - Reduced revenue leakage
High interconnection costs – which can range from 30-70% of operating costs, make it crucial to reduce revenue leakage. MACH analysis shows that the average industry revenue leakage in interconnect is around 3% and, consequently, even small revenue leakages have a huge impact on overall profitability. The latest cases showed that, with MACH Interconnection, the revenue leakage decreased to an average of 0.1 %. The improved procedures can, in the above example, result in an NPV gain of 2.5 million EUR during the three year period. - Reconciliation of invoices
Through higher accuracy of data and better reporting, MACH can reduce the deviation accepted for reconciliation of incoming invoices. In this example, this would mean an additional NPV gain of 300,000 EUR in this period.
Free up key resources
Every operator seeking increased profitability has to face up to limitations on the resources available to run the business – and these resources should focus on revenue generating activities within the core business. With MACH Interconnect you will free up your key resources – enabling them to focus on activities where the return on investment is higher.
MACH’s dedicated team takes care of both the routine daily functions and the time-consuming and unpredictable tasks such as discrepancy investigations.
Transparency is important too – and near-real-time activity reporting, powerful online applications and clear monthly financial positions relating to each and every interconnect partner together mean that the business can be under better and more effective control than ever before.
Conclusion
Interconnect has, in many areas of the telecoms industry, long been considered an ‘in-house’ function. Today, the evidence points increasingly in the opposite direction and a growing number of operators are improving their financial performance through outsourcing.
