Truly Convergent Billing

Asia Billing and Revenue Assurance 2010Doug Newdick 09 March 2010

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The Promise of Convergence?

The single software package view of convergence

• “I hear you have billing problems – our billing software will solve them.”

• A promise that is unlikely to be fulfilled.

We need to move to a complete view of converged billing architecture.

• One that encompasses the totality of billing.

• One that is likely to deliver on the promise.

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Convergent Architecture

A view of what a truly convergent billing architecture might look like• One that uses Enterprise Architecture best

practice.

• One that uses industry standards.

• One that builds on practical experience both at delivering - and failing to deliver - convergent billing.

• The good news: it is achievable!

• The bad news: there is no silver bullet, no magic billing application.

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What is Convergence?

The customer view:• The ability to use, access, purchase or

experience as one, something that previously had to be used, accessed, purchased or experienced separately.

The operator’s view:• Those things that we must do and be in order

to provide convergence to the market place.

• If there is no customer impact, there is no meaningful convergence.

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Different Kinds of Convergence

One BillOne View of the

Customer

Service Charging Convergence

Prepaid/Postpaid Convergence

Full Product Convergence

Real Time Postpaid Mobile Charging

Real Time Fixed Line Charging

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How Did We Get Here? A Hypothetical Billing Landscape

PSTN RatingPostpaid Mobile Voice, Data and

SMS Rating

Prepaid Mobile Voice and SMS

Rating

Broadband Rating

MMS RatingCorporate

Customer Rating and Billing

Invoice Printing Accounts Receivable

Dialup Rating

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Converging The Billing Landscape: This Is Not The Answer!

Convergent Billing Application

PSTN RatingPostpaid Mobile Voice, Data and

SMS Rating

Prepaid Mobile Voice and SMS

Rating

Broadband Rating

MMS RatingCorporate

Customer Rating and Billing

Invoice Printing Accounts Receivable

Dialup Rating

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How Did We Get Here? Convergence Anti-Patterns 1

Business Problem Business SolutionLeads to

Technology Problem

Technology Solution

Leads to

Su

pp

ort

s

Constrains

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How Did We Get Here? Convergence Anti-Patterns 2

Business Problem Business SolutionLeads to

Technology Problem

Technology Solution

Leads to

Su

pp

ort

s

Solves

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Architectural Levels

Business View

Business Processes, Organisational Structure, Business Entities

System View

Logical Applications, Logical Data Model

Technology View

Hardware, Software Packages, Physical Data Model

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Architectural Levels: Cycles of Problems and Solutions

Business Problem Business SolutionLeads to

Technology Problem

Technology Solution

Leads to

Su

pp

ort

s

Creat

es

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What’s Architecture Got To Do With Convergence?

Each level can be convergent or divergent independently.

• Divergent higher level views can be supported by convergent lower levels.

• Convergent higher level views can be supported by divergent lower level views – though this isn’t easy!

Truly convergent architecture is when all levels align on a convergent model – supporting a truly convergent customer experience.

How convergent you become should be determined by business capacity for investment and desire for convergence.

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Convergence at Different Levels

Business View

System View

Technology View

Charge for Broadband

Charge for Mobile Data

Logical Usage Rating

Online Charging Software

Charge for Bundle

PSTN Rating

PSTN Charging Software

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Considering All of Billing

System View

Mediation RatingBill

CalculationAccounts

ReceivableInvoice

ProductionCollections

Business View

Technology View

Billing Business

Processes

Billing Software

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The Extended Enterprise or Telco 2.0

The boundaries of the enterprise are no longer rigid.

The effects of the enterprise extend outwards beyond the traditional borders of the enterprise.

• Into traditional suppliers and partners

• Out to customers

Convergence is a key enabler of the extended enterprise.

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Billing and LTE

LTE produces no new challenges.

LTE does intensify existing challenges.• The commodification of data

• Cannabilisation of voice revenue

• Increased importance of VAS

• Potential for “bill shock”

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Convergence: LTE and the Extended Enterprise

The challenges for billing from LTE and the Extended Enterprise are similar.

• Real time charging and postpaid credit limits can prevent bill shock and reduce financial risk for the service provider and any partners.

• Real time charging of VAS gives partners certainty.

• Converged charging makes management of charging for partners simpler.

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Telecom NZ: A Case Study In Convergence

•Telecom NZ is undergoing a significant programme of business transformation.

•We’ve recently launched a new 3G WCDMA mobile network.

•Billing has been a key aspect of these initiatives.

•The billing architecture team has identified convergent billing architecture as central to allowing us to deliver the required business capabilities.

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Telecom NZ: Where We Are

Key features of rating convergence:• Prepaid and postpaid mobile rated on the one

platform in real time: Voice, SMS, Data, VAS.• Fixed line broadband rated on the same platform.• Other products and services rated on other

platforms.

One bill for all products and services.

Bill calculation split between two platforms.

Postpaid A/R in the one platform.

Convergent offerings without necessarily convergent technologies.

Logically separate billing for each business unit.

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Telecom NZ: Areas of Architectural Development

Build on convergent rating by adding additional services.

Focus on convergent A/R and balance management to support one view of the customer.

Build capability once and re-use across product lines, customer segments and business units.

Converge as much as possible within the system and technology levels, leaving non-convergence at the business level.

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Thank You

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