Indian operators are slowing losing out revenues to the tune of 2.5 percent of their total revenues in a year due to revenue leakages caused because of data loss between systems, external frauds and inadequate controls and procedures says a new report from Ernst and Young.

The report estimates this loss to be currently at $750 million when calculated on the basis of Indian telecom sector being valued at $30 billion. The same report projects that the revenue leakages may reach $ 2 billion in two years time at the current growth rate. Compared to last year’s revenue loss of $550 million, the current estimations show a growth of 2 percent in revenue leakages.

Ernst and Young points out that Indian operators should follow global practices in assuring that revenue leakages are well under 1 percent. The report says operators are only focusing on core billing and rating activities whereas they should adopt a holistic end-to-end approach to revenue assurance.