Subex Ltd, a leading global provider of operations and business support systems (OSS/BSS) for communications service providers, presented the ROC™ Fraud Management System for Swisscom implemented using an innovative commercial Buyer/Vendor Risk Reward Share (RRS) Model in Fraud Management at the GSMA Fraud Forum. The GSMA (Global Systems for Mobile Communications Association) Fraud Forum was held in Dubai on 1-3 February.

Risk Reward Sharing Models in the Telecom Industry is not a new topic; however it’s unique for the area of Fraud Management. The model was agreed between Swisscom and Subex in 2009 for Subex’s ROC™ Fraud Management Solution and has been working successfully since then. The key concept of this innovative commercial model is to have the vendor share the same business objectives as the operator. This is done by sharing a percentage of the prevented fraud losses which are automatically calculated within Subex’s ROC™ Fraud Management System based on some pre-defined calculation formula for each of the fraud types monitored as part of the operators risk matrix.

The initiative started because Swisscom wanted to protect itself and its customers with the best fraud management solution possible. Subex won the competitive tender but Swisscom’s senior management wanted to explore the possibility of a contract which would reduce up-front CAPEX spending and add a reward element based on the amount of prevented fraud losses. The commercial and operational requirements were brought together in a model that rewards Subex for detecting all types of fraud as early as possible and for working with Swisscom to stop it.

This partnership has been running since 2009 and in 2010 won the internal Swisscom “Supplier Award for Innovation”.

The partnership initiative is continuing with no fixed end date.