Theft of Service is an industry growth inhibitor and is overlooked as an area requiring management focus and resources. According to the NCTA, the American cable industry loses more than $7 billion annually in unrealized revenue. In Canada the cable industry is losing well over $600 million a year due to unauthorized accounts with an additional $400 to unauthorized satellite signal reception.

Many broadcast service providers make only token efforts related to the theft of service problem, and those efforts often lack the skill sets to have any bottom line impact on revenue or to generate positive cash flow.

Some industry service providers have stated that they do not require an outside Risk Management service. "Our staff are always in the field and they report theft, as well as remove it."

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Our interviews, with their installers and field auditors, reveal that while they are often in field situations where theft is occurring, the majority do not "make note" of it and therefore the theft is never reported, ostensibly, left undetected. They advise us that because the completion and the quality requirements of their given job takes their full focus, they often do not have the time to perform an audit. One installer told us, "Getting the job done sometimes requires a bit of "tunnel vision."

In our cable Risk Management program we conduct two kinds of Loss Prevention and Recovery programs -- non-subscriber audits and subscriber audits. Non-subscriber agents identify homes where the residents receive cable but don't pay for it. Subscriber agents identify residents who receive more than they pay for.

Theft of service represents a competitive threat to the cable and satellite industry that is similar to the current problems faced by the record industry. It is easy to download and burn music CD's for free, so why pay for them?

The same is true for all broadcast service providers, whether cable, satellite or new providers like  the telcos; it is very easy to steal (even digital signal), and consumers feel that the risks are small because most cable companies do little to monitor or enforce signal integrity issues.

Theft of service makes it nearly impossible for cable operators to reach their growth potential and consumers who are stealing basic are not taking any of cable's advanced service offerings, such as high-speed Internet service or VoIP telephony.

The telecommunications industry continues to change and evolve through mergers, consolidations, increased competition, and consumer demand for lower service fees - there is an increasing need to implement broader risk management programs, especially in the area of signal loss prevention and recovery (SLPR). Increased focus on exposing and exploiting these opportunities is paramount.

As specialists in the theft of service issues we recognize that success depends on a growth strategy with strong leadership, a commitment to change, and a cooperative effort from every operational discipline within the system.

Before we will accept any client we must know that they are committed to recapturing these lost revenues, and if required, pursuing an uncompromising legal collection process. These points are key to the project's success.

BWC's Client Services "first step" is to implement the "theft of service" team for our client, comprised of key officers, managers, directors, and staff members from every discipline within the client's operation.

Some clients look to tighten operation procedures or drive basic subscriber growth while others perceive employee problems related to theft. In all cases, our efforts became an immediate profit center within the first three months of operation, after the ramp-up period is completed.

Part of the BWC Loss Prevention and Recovery programs settlement includes a two-year service commitment. Cancellation brings an  immediate re-audit.

At Bush Waterhouse we realize that system personnel are sometimes engaged in unauthorized installations. We recognize that these people are hard to find and even harder to prosecute.  We work closely with the "theft of service" team to improve its relationship with local law enforcement as well as to investigate tips received from consumers and other employees.

Most importantly, at the client's request, we will pursue prosecution in these cases as aggressively as possible, and send a powerful message to staff and consumers alike that theft will no longer be tolerated.

Our client objective is a serious, well-planned strategy to combat your theft of service problem and increase annual profits.

The rewards of a well planned strategy are: increased positive cash flow, substantial subscriber growth, improvements in quality control/audit functions, an increase in premium and pay per view sales, ongoing employee training regarding theft issues, and increased consumer awareness.

BWC is an international telecommunications service provider specializing in risk management solutions for the cable, satellite, and telecommunications industries. For more information, please contact Client Services