Acision Webinar – Real-time Charging: How to Help Customer Experience

Real Time Charging – how to help customer experience
November 2012
Chris White
© 2012 Acision BV. All rights reserved

Presentation material

• Market dynamics
– Size
– Evolution
– Market pressure
– Market feedback – operators and subscribers
• Role of real time rating and charging
– What are the benefits of real time
– How can real time be added to existing systems
– Examples of real time enhancements

Presentation Logistics 
•If you have a question – please type it in the question space
•We will try and answer during the presentation (usually at the end of the current slide
•Questions we cannot answer we will supply a written answer later

© 2012 Acision BV. All rights reserved Version No: 12345 / Status: DRAFT Slide Number: 2

Market size

Revenue Associated With Different Sectors
$3,000

$2,500
Revenue (millions)

$2,000
Policy

$1,500 Active Mediation
Real Time Charging
$1,000 Prepaid

$500

$-
2010 2011 2012 2013 2014 2015 2016

Data Source:-
OSS Billing Report
Analysis Mason


Market evolution

Operators Dilemma (And Opportunity):- The Fourth Wave
Model proposed by Chetan Sharma Consulting 2012
NOTE – Axis labels are changed from the original model
Activity/Focus

Voice

Access
‘Hype’
Market Revenue

VAS/OTT

Messaging

FUTURE

Time
Subscriber Penetration


Some Market Touch Points
Total Monthly Voice And data Measured by Ericsson
600
• ‘3’ UK claim:-
Tota(UL + DL) monthly traffic (PetaByte/Month)

500 – 90% of network load = data
– This data load generates ~ 30%
400
revenue
300 Voice • USA market:-
Data – 85% traffic = data
200
– Generates 39% revenue
100 – Every 52C new data fees is not
off-setting 96C lost voice fees
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11
Operator Revenue Microtrends (US)
Revenue Per Text Message, Revenue Per Voice 0.07 0.7
(c) Chetan Sharma Consulkting 2012
0.06 0.6

• Implications:-

Revenue Per MB - USD
0.05 0.5

– Voice/Messaging subsidising 0.04 0.4
Minute - USD

the data explosion 0.03 0.3

– Can only be sustained for a 0.02 0.2

finite time – Ovum claim 0.01 0.1

possible until 2016 0 0
2005 2006 2007 2008 2009 2010 2011

Rev/MoU Rev/Txt Rev/MB

Impact of the market evolution

Revenue by Service
1200

1000
Simple questions?
Revenue ($ Billions)

800

600
Voice 1. Will operators invest in SS7 voice
Data (access)
systems?
400 Messaging
2. How do they generate revenue
200
form ‘access’
0
2011 2012 2013 2014 2015 2016 3. How can they encourage users to
pay for data?
Effective Capacity Needs By Service
1. Users still unsure of what they get for
160
say 500Mb
Effect Annual Usage (Exabytes/yr)

140
120
4. Can operators gain revenue from
100 data services outside $/Mb model?
SMS
80
Voice
60
Data
40
20
0
2011 2012 2013 2014 2015 2016


Operators feedback

Does your existing post paid system provide real Do you think that you post paid system should
time (<1s) data collection and rating? provide real time capability
80% 100%
60% 80%
60%
40%
40%
20%
20%
0% 0%
yes No Yes No

Importance Of Real Time Control For Post Paid How Important (1-5) are different option
Data Usage
70
Loylaty point control
60
Communication direct to customer
Respondants (%)

50
device
40
Usage bunldes such as hybrid accounts
30

20
Shared balance bundles
10

0 Tiered pricing
Very Important Important Neutral Not Importants
0 1 2 3 4 5

Data from report “Future Of Mobile Billing” issued by Telecoms Intelligence
© 2012 Acision BV. All rights reserved Version No: 12345 / Status: DRAFT
Sponsored by Openet
Slide Number: 7

Benefits of real time rating / charging /
balance management

OPERATOR SUBSCRIBER
• Better control over ‘bad debt’ • Ability to control spend
• Improved customer loyalty • Have real time information on
• Customers more likely to try spend
new services – less risk of bill – Subscribers struggle to equate $$
to Bytes!
shock
– Unlike circuit switched voice
• Potential to reduce customer
• Greater transparency over
care costs – introduce more
what services cost
‘web self care’
• Potential to “customise” their
own tariff plan

Mutual Goal
• Make subscribers more confident with data and they will spend more
• Once value established subscribers will pay premiums for ‘specials’

The questions are

• Can we use real time charging to enhance subscriber
experience?

• Will real time charging help give subscribers confidence
in data use – no more bill shock?

• Can it be introduced economically to post paid?

• Can it bridge across prepaid and post paid to provide
family and hybrid offers?


Enhancing Post Paid For Real-Time

To Provide Real-Post Paid
• Subscribers benefit through: Post
Paid
– Instant information on spend
– Ability to control spend – no bill shock
– Notifications at set spend levels
• Operator benefits through:
– Reduced churn through bill-shock ACE

CDRs
– Ability to manage ‘bad debt’
– Re-use of existing solutions
Diameter
– System low cost as sized only for specific Router
subscribers SCP
– Ability to grow solution
• Key Points SS7 voice
– Solution can do data only – so no need for SCP SMSC,
MMSC,
– Potential to work with existing SCP GGSN,..

MSC
Data

Voice


Enhance AND Extend Life of Existing Prepaid

• Subscribers benefit through:
Prepaid
– Enhanced features
• Operator benefits:
– Very low cost compared to replacement
– Option to link ACE to post paid for hybrid and
convergent solutions
– Ability to offer new features to customer to reduce ACE
churn
– ACE is very high performance so small system
managers can scale
Diameter
• Solution can handle data AND voice (SS7) SCP

– SS7 Voices requires an SCP
SS7 voice
– Integrate to existing system – a possibility SMSC,
– Supply new SCP MMSC,
GGSN,..
• Key current focus is data:- MSC

– Messaging traffic (SMS, MMS)
– Web traffic Voice
Data
– VoIP
– OTT services


Hybrid Accounts – Data Only

• Subscribers benefit through:
Post
– Instant information on data activity/spend Prepaid Paid
– Bundles/service shared by prepaid & post paid
– Ability to control spend – no bill shock
– Notifications at set spend levels
– Family bundles can be offered
• Operator benefits through: ACE

CDRs
– Reduced churn through bill-shock
– Ability to manage ‘bad debt’ Diameter
– Re-use of existing solutions Router
Gx
– System low cost as sized only for data only
– Ability to grow solution
– Ability to offer family packages – ‘sticky service’
SMSC,
– Supports policy AND quota in one product MMSC,
• Target accounts GGSN,..

– Wanting to launch hybrid/convergent data services
– Supports 2G, 3G, LTE/4G - systems Data

• Key Points
– Solution can do data only – so no need for SCP
– Potential to work with existing SCP

Hybrid Accounts Solution

Voice
ACE
SS7 Bill Not Paid
Post paid
Billing
Diameter
System
CDR Feed
Data Bill Issued
Balance
Notification
Bill Not Paid

Start of the month:-
- ACE provisions the pack
Subscriber uses Service during the month
Subscriber uses service not allowed by
post paid package:- Core credit used
Subscriber uses more service and goes
below specified level so notified
At the end of the month:-
- Refreshes the post paid package
Core Cash Voice SMS Data
Credit
Post Paid Service

Hybrid Accounts Case Study (Setar)

Acision provides Setar with an
award winning hybrid account
o Challenge: solution allowing flexible
charging integration with post-
– Setar wanted to: paid.
• Enable parents to cap their exposure to bill shock on their
children’s phones  Setar is the Quad Play provider
• Enable users to have a mixture of pre-paid and post-paid in Aruba and expanding in the
services on a single phone region

o Solution:  Systems communicate over
– Acision offered a charging adjunct solution allowing for: API to allow full account
management
• Flexible bundling capability
• Integration to pre-paid and post-paid system  CDR Transferred to post-paid
• A stepped approach to replace existing pre-paid system for billing
o Impact:  All customer care is via Real
– Parents now have complete confidence in monthly bill Time System – enhanced to
– System being expanded to incorporate mobile data control support usage statement
– Additional ‘pay to use’ bundles added to support specific  All customers can have real
promotions and offers time account information over
– Legacy pre-paid system now decommissioned USD and SMS
– >20% of new subscribes on Hybrid plans - Two pre-paid systems;
One post-paid system


Additional options

• Bundles can restrict use based on:-
– Time of day
– Day of week
– Destination
• Bundles support role-over
– Un-used balance allowed to roll over into next month
• Outside package subscriber has option to buy additional
bundles:-
– Voice
– SMS
– Data
• Subscriber therefore now starting to define their own
tariff and gain confidence in data services

For Group Accounts

• Closed User Group:-
– SMS Example SMS
Dave
Charged to Paul’s
• SMS between group members Paul main balance
charged from common bundle

SM
S

M
M
SM

S
S
S
• SMS to non members charged to

SMS
Julie Lisa

S
main balance

SM

S
SM
• Open User Group:-

SM
S
S
S
John
– SMS Example
Charged to Paul’s
• SMS sent from the group to other main balance
Voice
Paul
people are from the common bundle SMS
Dave
• Other services are charged – see Julie
Paul-to-Dave voice call Anne

SMS
Lisa Chris
John
Mary

Slide Number: 16

Company 'X' ’s Pick ’n’ Mix

1. Pick Your Amount $10 $15 $20 $25 $30 $40 $50

2. Add What You Like
Talk Text Internet TV
$50 $10 $20 $10 $15 $20 $10 $15 $10

I Want Left over: $50
$10
$20
$30
$0
300 200 1Gb 1 Mnth
Mins Txts Data TV Buy

Addressing the BYOT market - Enabling
rapid provisioning of flexible bundles
• Faster time to market
• Greater consumer control

200 SMS 200mins
100 SMS 100mins
50mins

75mins
10mins

20mins

$65
•

$35
$20

$29
Drastically reduced management overhead
$5

$9

• Fit alongside existing systems
50 SMS
20 SMS
10 SMS

75 SMS Customer choice:
$3.75

$11

$14

$25
$8
$2

20 MMS
10 MMS

50 MMS
5 MMS

$3.75

$10
$5
$2

10 Mb

50 Mb
$3.75
2 Mb

4 Mb

$10
$5
$2
Unlimited IM

Mobile TV
5 Apps
$2

$3

$5

• Customer selects 1 item from each option
• Customer has 1728 possible combinations
• Operator manages 23 items!
• Traditional system needs 1728 tariff plans!

2010 Version No: 12345 / Status: DRAFT Slide Number: 18

Graphical Tariff Management For Advanced
Bundles

Market Segmentation
Advanced Bundle/Offer Validity Price Child Youth Adult Senior Foreign
Worker
60mins (on net) 1 month $5

120mins (on net) 1 month $9
100 SMS 1 month $4
500 SMS I month $16
60mins (on net ) & 100 SMS 1 month $8
60mins (on net) & 500 SMS 1 month $18
200mins calls between 8 users 1 month $12
200mins calls for 5 users 1 month $12
200mins to China 1 month $10
100mins to Europe 1 month $9
360mins and 100 SMS 6 months $26

Could be the same
tariff plan just bundle
availability changed


Virtual Landlines


Globe DUO Case Study

Business problem:
• Increase voice revenues
• Increase retention and reduce
churn
• Compete in a fixed-mobile market
• Specially fixed-wireless

Marketing solution:

• Virtual landline service
• Mobile and Landline in One
• Unlimited calls “in zone” only

Network problem:
• Existing charging systems lack
flexibility, too expensive and long
time to upgrade
• Competitor option cheaper but not
future proof
• Incumbent requires IN swap

Mobile and Landline in One

Normal rates
OR

3) Upon activation, you can now make the
Free 4) To callyou are subscribed to DUO, you
2) Once any
following callslandline: dial area code +
will be given your of charge:
free
landline number. DUO landline number.
1) How much does it cost?
•Your DUO phone to any landline
Your mobile phone will now have two (2)
•Any = another your DUO phone
To call 1 day toDUO number: dial area code +
P25 landline
numbers:
•Yournumber of person you are calling.
DUO = 30 days to another DUO phone
P450 DUO phone number
•Your current mobile
P1250917-XXX-XXXX)
(ex. = 5 days
No need14 to other mobile numbers or landlines
Calls madedays
P350 = for landline number
•Your DUO keywords or special prefixes!
Free outside the covered area/s are charged regular
(ex. 02-XXX-XXXX)
mobile rates.

Manila Other areas

Acision’s Solution For Globe

Why Acision working with Computaris?
HLR
Two prepaid
• 4 months from PO to service launch systems from 2 Cell ID
different NEPs look up
• Seamless integration with existing
postpaid and prepaid platforms Acision
• Supports fixed and mobile Location
Gateway
• No need for IN swap (adjunct)
• Integrated location solution (Cell ID) CAMEL (prepaid)

• Product-based solution with roadmap
INAP (postpaid)

Acision
• Flexibility to support other types of Flexible Voice
bundles including SMS and data Charger

Globe ‘own’
post paid system

Acision Location Gateway – developed by Computaris

Globe’s Results

First in the World
Globe spearheads innovation
Return to Home Page
Today’s lifestyle is a mobile one. Students, professionals,
executives are always on the go --- and wherever they are,
they seek constant communication with all quarters.
“Technology today drives innovators (toward)
• New market penetration for Globe convergence, as the market demands more efficient and
– 70,000 users in first 4 months launch effective means of communicating,” says Ferdinand de la
Cruz, head of Globe Telecom’s Consumer Wireless
• Differentiation from other operators Business Group. “For this reason, Globe is breaking the
– Sun Cellular has a similar offering but users have barriers between mobile and landline services by coming
to use a dual SIM card handset up with this revolutionary two-in-one service.”
– Competition has seen 20% drop in activations De la Cruz is referring to Duo, the world’s first fully-convergent
• Convergence of their service offerings solution that works across both fixed and mobile networks for
cell phone users. Together with Acision, the world’s leading
• Cost saving – one solution for all systems messaging company, Globe launched this breakthrough service
• Future Proof last April to boost voice network traffic by offering unlimited
– Deploying “One country, one rate” calling within a set city zone.
Ernest Cu, Globe’s President and CEO is elated by the
company’s pioneering coup. “We are excited to offer the
public another pioneering service from Globe. Globe has
always been at the forefront of service innovation to
deliver superior value and the best mobile experience for
consumers.”


Finally – is this an economic option?

• What can an Acision platform support?
• Sizing example:-
– 7 half height blade cluster (e.g HP Proliance G7)
– For data-only can manage >7 million subscribers with:-
• Data – Messaging, web services,…
– This includes:-
• Real time rating, charging and balance management
• Bundle management
• Group bundle management
• Customer notifications
• Customer account information enquiries
• So at least an order of magnitude below a full system up-
grade

Slide Number: 25

Thank You
To view the recorded webinar, please go to:
http://webexpo.computaris.com/webinars/acision and register.
Slide Number: 26

Acision Webinar – Real-time Charging: How to Help Customer Experience

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