Forfeited Revenue: A New Metric to Quantify Telecommunications & Data Center EBITDA Losses due to Late Service Installs

Forfeited Revenue: A New Metric to Quantify Telecommunications & Data Center EBITDA Losses due to Late Service Installs

Forfeited Revenue is the total dollar value of services that a customer has agreed to pay for that is permanently lost when a carrier or data center cannot deliver services on time according to CRD.  It shows how effectively any carrier or data center maximizes revenue based on the orders their customers have already signed. Ideally, every order would be installed on CRD, making Forfeited Revenue zero, because the carrier managed inventory, equipment, and processes to efficiently respond to customers’ needs.   However, every dollar of Forfeited Revenue is an opportunity lost forever.   This metric directly quantifies the revenue impact of late installs for the carrier, and standardizes all comparisons of impact across customers, business units, and products using dollars.  Decision makers can subsequently evaluate, prioritize, select, and execute improvement programs using Forfeited Revenue, cost and duration to calculate standard measures of ROI.