Billing for Content CC&B Progress and...

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Billing for ContentCC&B Progress and Challenges

Neil PhilpottPresident, Global Billing Association

&Director, Solutions Strategy, Amdocs

delivering knowledge and networking to the billing community, world wide

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The Wonderful World of Content

• Why are we interested?• What is it?• How difficult is it?• What is the return on investment

(ROI)?• Does it really increase average

revenue per unit(ARPU)?


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Why Content?

RPM: revenue/minute in NA

$0.00$0.02$0.04$0.06$0.08$0.10$0.12$0.14$0.16$0.18$0.20

1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03

CPGA weigthed average

$310$320$330$340$350$360$370$380$390$400

1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03

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a. Variable data transfer (low speed)• www access & e-mail• corporate LAN access (wireless VPN)• remote workforce data exchange

b. Subscriber-driven formatted data access (pull-information) (low speed)

• air & rail timetables & departure information• stock reports• latest scores traffic reports

c. Provider-driven formatted data supply (push-information) (medium speed)

• daily news and information updates• regularly - e.g. daily or weekly - supplied news and information

d. Value-added content, customer configurable content(high speed)

• music, video, multimedia services• web sites offering goods or services for sale over the net

What is Content?

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What is Billing For Content?The Telecom:

Transporter andBILLER of Value

Voice

Data

Content

Subscriber

People

a. Variable data transfer (low speed)• www access & e-mail• corporate LAN access (wireless VPN)• remote workforce data exchange

b. Subscriber-driven formatted data access (pull-information) (low speed)

• air & rail timetables & departure information• stock reports• latest scores traffic reports

c. Provider-driven formatted data supply (push-information) (medium speed)

• daily news and information updates• regularly - e.g. daily or weekly - supplied news and information

d. Value-added content, customer configurable content(high speed)

• music, video, multimedia services• web sites offering goods or services for sale over the net

Content

Billing for Content is the billing based upon

the direct relative value of the content

rather than utilization of communications

bandwidth

Billing for Content is the billing based upon

the direct relative value of the content

rather than utilization of communications

bandwidth


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Categories of Content Services

Interaction Model; e.g. push/pull e-delivery of stock quotes (transport is negligible)

Transaction Model; e.g. purchase of cinema e-ticket; (transport is negligible)

Streaming Model; e.g. watching CNN, (transport is substantial)


7delivering knowledge and networking to the billing community, world wide

Order Management

Translation of customer needs into product/service configuration

Customer Service

Integrated management of the interfaces

between customers &

internal processes

Billing & Collections

Rating & Billing of resources used by each customer followed by

collection of receivables

Risk-Management

Ensuring quality of

customer base through credit

check, customer monitoring &

fraud prevention

Source: Veba Telekom

Customer Retention/recovery

Building and managing a “learning relationship” at the individual customer

level

‘New’ processes

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Content & VAS

i-tunes – downloadable MP3 for $0.99 per song-

– MovieBeam, direct video on demand service-

Customized version of Movielink (VOD service)BellSouthprovide gaming and entertainment DSL customers Qwest-Sony

Customized Yahoo! broadband Portal for SBC-Yahoo subscribersSBC-Yahoo!Customized MSN broadband Portal for Verizon-MSN subscribersVerizon-MSN

Disney, Sony, AOL, Google

Disney, Sony, Universal, MTV...

Reuters, BBC, FA Premier League...Hutchison 3G (‘3’)

Wall Street Journal, ABC News, Sony, LA Times...AT&T Wireless

Disney, CNN, Hallmark, MTV...NTT DoCoMoTHQ & Fox (Simpsons), Tomb Raider, UEFA ,Google…

Content ProvidersOperator


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Content & VAS

ÖBB MOBILE TICKETAB-Bahnhof: [wien]AN-Bahnhof: [linz]Name: [muehan]Anzahl Erwachsene: [1][Vollpreis]

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Challenges & Opportunities

• Quality of Service• Customer Management• Content Identification• Pre-paid / Post-paid Convergence• M-payments• Content Roaming• Digital Rights Management• Partner Relationship Management• Context-sensitive Pricing


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Network Quality

Packet delay, Jitter, Throughput, Packet loss,

Availability

Service Quality

Streaming service, Push services, Commerce

Customer Experience

Content server

Own network

3rd party networks

User device


Quality of Service

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Customer Intimacy

PerceivedValue

Range of Personal Context Time, Device, Location, MyPreferences, Behavior

Profile, Payment history, Balance $

Transport

voice text images audio video multimedia commerce

Services

Super Fan Segment Bundles

$

$

$

Customer Management


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Current pricing includes:

Megabytes, packets, number of WAP

pages, time, flat rate

Pricing must become more intuitive

but identifying content is an issue

Walled gardens

‘Packet sniffing’


Content Identification

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Pre-paid / Post-paid Convergence

• Payment options: • Pay on bill• Prepaid• credit card• debit card


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Customers need easy to use payment methods

Billing system needs to interface with gateway that

mediates between user and merchant

Need for standards, such as PayCircle


M-Payments

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Two current models:

ISP roaming – via visited network

HPLMN roaming – via home network (favoured -

good security, tracks customers)

Emergence of GPRS Roaming Exchange

(GRX)

Provides IP connectivity, security, quality of

service


Content Roaming

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Data exchange direct, or via clearinghouse

GSM – TAP3, and CAMEL phase 3 (volume/duration)

The future will need to accommodate:

LBS, location adverts, home language/currency


MSC/SGSN

GGSN / PDSNGGSN / PDSN

MSC/SGSN

Home Network

VisitedNetwork

IP/Internet

GRX Backbone

Content Roaming

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Controls access to content against a set of rules

Protects rights of the content owner

Decision to permit / disallow access may be

based on a wide range of parameters

Credit limit, Age, Subscriptions, Maximum number

of accesses allowed, Etc

Execution of rights management requires

agreement and trust between content provider

and service provider


Digital Rights Management

19delivering knowledge and networking to the billing community, world wide

NetworkRetail Billing

Customer

Partner

CRM

ContentProvider

Supplier/SalesPartner Interconnect Provider RM Supplier RM

Provisioning

Info

Service Order

Partner Billing Partner Relationship Management

Partner Service

Info

Processes

Provisioning

EDR

EDR

Partner Relationship Management

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Traditional billing

Time, Volume, Distance

IP Billing

IP address, URL, device ID

New: Billing for Context

At home, At work, Different locations (also split billing)

Emergence of context based services

location based, or telematics – a car’s specific location

vs brand of hotel, gas stations


Context-sensitive Pricing

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Conclusion

Source: 2003 BCE Annual Report

• The hard parts are– Understanding what the

customer wants when they don’t know themselves

– Aligning the whole company to the new business

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Neil PhilpottPresidentGlobal Billing Association

[email protected]

Neil PhilpottDirector

Solutions StrategyAmdocs

[email protected]

Thank you!


23globalbilling.org

About the GBA

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The Global Billing Association (GBA) delivers Knowledge and

Networking to the Billing community, world wide

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Company Structure

a non profit making companyregistered in the UK

limited by Guarantee

has no shares

exists purely for the benefit of its membersany surplus is re-invested (Web site, events etc)

policy decided by Executive Council

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Executive Council

50/50 between operators and vendors

Sets the direction and policy for the GBA

Members - 75% operators, 25% vendors/SIs

Now open for business in Asia Pacific, Australasia, North America and Europe

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Activities

Process benchmarking for operators (4th year)

Monthly newsletter for members

Web site and archive of notes and newsletters

Complimentary workshops

Regulatory channel

Promote billing issues to other industry groups

Knowledge Integration

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Knowledge Updates - electronicReference Manual

ServiceProvidersurveys

SIG meetings

regional webinars& workshops

issue for discussion:- e-billing- regulation- m-commerce- etc

GBA statement, position paper, report

Association BriefingsCXO BriefingsMarketing/promotion

Members External


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focuses on member’s issues

allows regional discussions

allows easy exchange of ideas/issues, globally

encourages effective communication with wider industry

member driven

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GBA themes for 2004

‘new’ billingmicro billing, billing for content, value chain/partner

revenue managementbenchmarking, ARPU/AMPU, other industries

‘wild card topics’member driven workshops, range of subjects

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Contacts

[email protected] Manager

Mindy Chohan

[email protected] [email protected] van t’Schip

[email protected] Philpott

[email protected] Leslie

Billing for Content CC&B Progress and...

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