Revenue Assurance
The Strategy for Success in Telecom: Arsen Lazaryan's Perspective on Revenue Management
August 27, 2024, 1:15 PM
Telecommunications have become such an integral part of our lives that we take them for granted. Rarely do we stop to think about what happens behind the scenes of this digital modernity.
We know the names of telecom moguls whose companies provide us with connectivity, but who are the people standing behind them? Who are the unseen creators whose strategies and innovations enable telecom giants not just to survive but to thrive in an ever-changing digital landscape?
One such expert is Arsen Valeryevich Lazaryan, who has risen from a junior specialist to a federal-level leader in revenue management. With over two decades of experience at Russia’s largest mobile operator, he now serves as an independent expert in the field of Revenue Assurance.
This year, he has published several analytical works addressing pressing issues and methodologies in Revenue Assurance. In this interview, Arsen Lazaryan shares his perspective on the evolution of the telecommunications industry, drawing on his extensive experience across various segments of the field.
— Arsen Valeryevich, can you tell us how your journey in the telecommunications industry began?
— It started, you could say, by chance, but that chance defined my entire career. In 2001, when mobile communication was just gaining momentum in Russia, I joined the Smolensk branch of MTS as a junior specialist. At the time, I couldn’t imagine how deeply I would immerse myself in this dynamic world of technology and innovation.
Year by year, my role in the company grew. I moved from sales to working with corporate clients, then to managing the VIP segment, overseeing revenue generated by the highest-income subscribers. Each new position revealed new facets of the industry to me. It was like piecing together a puzzle, gradually forming a complete picture of how this complex mechanism, called a "telecommunications company," operates.
A pivotal moment came in 2005 when I took on the role of Head of Credit Control Department at the Krasnodar branch of MTS. It was there that I first encountered the importance of not just generating revenue but also preserving, controlling, and optimizing it. This was my first step toward what would later become my primary specialization—revenue management and Revenue Assurance.
Looking back, I realize that every stage of my journey was crucial. From working with clients, I learned to understand their needs; from managing sales, I gained a broader business perspective; and from working in finance, I acquired tools for process analysis and optimization.
The real breakthrough came in 2008 when I became the Head of Revenue Management. This role gave me a comprehensive view of the entire process—from service pricing to inter-operator settlements and billing system oversight. I realized that revenue management isn’t just about accounting and control; it’s a science of maximizing a company’s profits while minimizing risks.
One particular case stands out. During the launch of a control procedure, we discovered a significant "leak" in revenue. The losses amounted to millions of rubles per month! When we resolved the issue and saw revenues rise sharply, I understood the immense power and potential of Revenue Assurance.
With each passing year, the importance of this area only grew. The advent of new technologies, increasingly complex tariff plans, and the surge in data volumes made revenue management more challenging and, at the same time, critically important for business. I was responsible for ensuring that the company received its full revenue for the communication services it provided.
— What is Revenue Assurance, and why is it so important for telecommunications companies?
— Revenue Assurance, put simply, is the art of ensuring that every ruble earned by a company actually reaches its pocket. But behind this simple definition lies a complex system of processes, technologies, and strategies.
At some point, I realized that Revenue Assurance is not just a set of tools or processes. It’s a business philosophy built on constant analysis, optimization, and innovation. This philosophy became the foundation of my professional activities, allowing me not only to keep up with changes in the industry but to anticipate them, creating new methods and approaches to revenue management in telecom.
In the world of telecommunications, where millions of transactions are processed every second, even the smallest error can lead to colossal losses. Imagine that due to an incorrect tariff configuration, the company undercharges just 1 ruble per subscriber each month. That might not seem like much, right? But if an operator has 50 million subscribers, that translates to 50 million rubles in lost revenue every month! Now imagine that there are hundreds or thousands of such services. The architecture of mobile communication and billing systems is extremely complex, and any seemingly insignificant failure without proper oversight can result in hundreds of millions of rubles in lost revenue. That’s a massive amount of money.
This is why Revenue Assurance plays a critically important role. It’s like the immune system of a telecom company, protecting it from financial losses caused by technical failures, human errors, or fraudulent activities.
However, revenue management isn’t just about preventing losses. It’s also about optimizing processes, improving efficiency, and ultimately enhancing the quality of services for subscribers. For example, when we launched a project to control international traffic, it not only increased the company’s revenue but also improved the quality of international calls for our clients. Based on this extensive experience, I published a scientific article on methods to increase revenues from international voice traffic.
— You received an award from the Ministry of Digital Development. Was it in recognition of a specific project?
— This award was the result of numerous projects and initiatives implemented over the years during my tenure at MTS. However, if I were to highlight one specific achievement that I believe played a key role, it would be a comprehensive project aimed at modernizing and expanding the Revenue Assurance system. This project extended beyond mobile subscribers to include fixed-line internet, telephony, cable, and satellite TV clients.
The project began back in 2016 when I was responsible for revenue assurance for fixed-line subscribers across MTS’s entire federal network. We faced a situation where the existing control systems were struggling to cope with the growing data volumes and new service types. Additionally, new fixed-line operators with diverse billing systems were integrated. At that point, it became necessary to create a unified data accounting system to enable revenue control.
Our task was to develop a unified, scalable system of control procedures capable of real-time analysis of enormous data flows from subscribers across Russia, detecting anomalies, and preventing potential revenue losses. It was an ambitious goal. The project took several years to complete, and the results exceeded our expectations. Most importantly, this project acted as a catalyst for changes in the overall approach to revenue management in the telecommunications industry. Later, in 2020, I led a revenue assurance project for one of MTS’s subsidiaries to improve operational efficiency. This was during the challenging period of COVID restrictions, and despite these obstacles, the project was successfully executed. For me, it was a true test of responsibility and resilience.
We regularly shared our experiences at professional conferences, such as the Revenue Assurance & Fraud Management Forum, which helped disseminate best practices across the industry.
I believe the comprehensive nature of this project, its innovative approach, and its significant impact on the efficiency of Russia’s largest telecom operator were the key reasons I was awarded this departmental honor. This recognition reflects not only my personal efforts but also the critical importance of developing Revenue Assurance for the entire telecommunications industry in Russia.
— You participated in the "Talent Management" program at MTS. How did it impact your professional development?
— First and foremost, the program gave me a broader perspective on the telecommunications business and allowed me to join the management talent pool of one of the best companies in Russia.
A key element of the program was studying best management practices across various business areas. This expanded my horizons and enabled me to apply innovative approaches in our work. For example, the idea of optimizing the process of disconnecting subscribers with a zero balance, which brought the company an additional 60 million rubles annually, emerged thanks to exposure to innovative best practices. During the program, I also consolidated several business plans for expanding the cellular network. The project was implemented, providing over a million residents in more than 260 localities across Russia with access to mobile communication services.
The program also included intensive soft skills training, which proved incredibly valuable. Skills such as effective communication, leadership, and conflict management significantly enhanced my efficiency as a manager. When I launched a unified revenue control system for all company subscribers across Russia, these skills were invaluable for coordinating the work of various departments and overcoming inevitable challenges.
The program featured a module on innovative thinking, which inspired me to develop new approaches in revenue management. I was so motivated by innovation management that I participated in and won the "Idea Factory" competition twice. My initiatives were successfully implemented, generating tens of millions of rubles for the company.
I believe that such development programs are investments not only in individual employees but also in the future of the company and the entire telecommunications industry.
— What professional goals do you set for yourself as an independent expert in revenue management?
— First, as a mentor and consultant for young professionals and companies just beginning to develop their Revenue Assurance (RA) capabilities. My experience in launching projects like the unified revenue control system for all MTS branches across Russia can be immensely valuable for growing companies.
The next goal involves developing new methodologies and tools for revenue management in the context of 5G and IoT advancements. These technologies present new challenges and opportunities, making it exciting to work on innovative solutions in this domain. Consider the number of digital startups being launched today—telecommunication companies are transforming into digital ecosystems. Applying innovative technologies to service delivery requires a timely and well-structured approach to revenue management. Such a strategy ensures maximum business profitability and sustainable growth, and this is where my experience is invaluable.
I also plan to increase my participation in national and international forums, publish articles in professional journals, and perhaps even write a book about modern approaches to revenue management in telecommunications.
Another area of focus is working to raise standards in Revenue Assurance. As a member of the Association of Independent Directors, I plan to use this platform to promote the importance of effective revenue management at the board level within telecom companies.
Lastly, I aim to deepen my expertise in the regulatory aspects of revenue management. With ever-evolving legislation, this is a critically important field. I am particularly interested in actively working on recommendations for adapting Revenue Assurance systems to meet new regulatory requirements.
Take a look around: telecommunications permeate every aspect of our lives, from a morning coffee ordered via an app to an evening series streamed online. This invisible digital framework is upheld by professionals like Arsen Lazaryan. Their work isn’t just about numbers and algorithms—it’s about ensuring that our world continues to spin, connect, and evolve. And as long as experts like him are at the helm, we can be confident that the world will not only maintain its pace but continue to astonish us with new technological breakthroughs.
The original article in Russian:
Revenue
Assurance
Assurance
© A.Lazaryan, 2022 - 2025
Revenue
Assurance
Assurance
© A.Lazaryan, 2022 - 2025