Bad debt management is a key driver of financial performance for telecom and cable operators – but it also presents a major challenge, with the risk and cost of non-payment needing to be balanced against the opportunity costs.
Bad debt management techniques have a far reaching influence, going well beyond control of non-recoverable income and fraud, and should be an integral part of optimizing customer acquisition, development and retention. With some businesses now upgrading their capabilities on bad debt management by adapting best practices from other industries, our experience suggests that even relatively advanced operators are able to unlock 1-2 points of EBITDA in this way.
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