A Pragmatic Approach To Billing Systems Evolution

Mobile Billing SystemsIIR

Budapest27th – 30th September 2004

2

Agenda

What’s changing in the market

Implications for Billing

Conclusions

3

Agenda

What’s changing in the market– Commoditisation of voice– Industry consolidation– Bundling & convergence– Content & VAS– Segmentation & branding– The enhanced CSP

Implications for BillingConclusions

4

Commoditization of voice

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

5

Industry Consolidation

6

Bundling & Convergence

7

Content and VAS

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

8

Segmentation & Branding

Consumer context

Time of the dayDevice in use

LocationCurrent role

Attention availability

Targeting – consumer segmentation

Age groupDemographics

Lifestyle definersService usage history

Social gatheringPreferences and interest

+

Tailored delivery

Targetedmarket segments

Increasedrelevance

9

Enhanced CSP

Customer Premise Services

• Voice• Basic

Cables• Broadband

Access• Messaging

(SMS, MMS,E-Mail, IM...)

• Content• Commerce

(E/M/T)• VOD• Games • VAS• ...Handset with

CPU, memory, OS

Set-top Box with CPU, memory, OS

Fixed device with CPU, memory, OS

Fiber to Home

PacketSonetATM…

Broadband Last Mile

Back Bone

xDSL C.O

CMTS

3G

Head End

Base Station802.16a (WiMAx)

10

Topics

What’s changing in the marketImplications for Billing

– Partner management– Pre-paid / post-paid convergence– Analytics– Self care– Expanded product catalogue– Electronic stapling– Systems consolidation– Outsourcing

Conclusions

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Partner Relationship Management

Payment Charging

Billing

Authentication &

Customer information

Messaging(SMS, MMS,

WAP)Location

Partner Service Broker

Content Delivery Platform Partner Application

RequestResponse

12

Pre-paid / post-paid convergence

• Payment options: • Pay on bill• Prepaid• Credit card• Debit card

13

Customer Intimacy

PerceivedValue

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

Profile, Payment history, Balance $

Transport

voice text images audio video multimedia commerce

Services

Super Fan Segment Bundles

$

$

$

Customer Analytics

14

Self care

15

Expanded, dynamic product set

CatalogueManager

ProductDatabase S

ecu

re B

2B

Chann

el

Internal Product Management

Suppliers

Resellers

Customers

OSSComponents

CommercePortal

Billing &Customer

Management

Unified Product Catalogue

16

Electronic Stapling

VoiceBiller

DataBiller

ContentBiller

Any otherBiller

ConsolidatedBill

17

Centre Consolidation

ConsumerBiller

CorporateBiller

DataBiller

Pre-paidBiller

Region 3

ConsumerBiller

CorporateBiller

DataBiller

Pre-paidBiller

Region 2

ConvergentBiller

ConsumerBiller

CorporateBiller

DataBiller

Pre-paidBiller

Region 1

18

Outsourcing

80-90’s 1995- 2001 2002-2005 2006 -2010

+

Internal IT

SI +

SI/Vendor +

Niche Vendors (Rating)

Billing solutions: mediation, CM,

Collection, Rating, Billing

“Best of Breed” Modular solutions:

Billing + CRM + OMS

+ (ERP?)

StrategicPartner

“Best of Suite”Complete BOSS and BPMReal time

Data centre Data centre

Applications

Data centre

Applications

BusinessProcess

19

Agenda

What’s changing in the market

Implications for Billing

Conclusions

20

Vision

Customer Customer

DeliverDeliver

SupportSupport

Target /AnalyzeTarget /Analyze

AcquireAcquire

Sales & OrderingSalesOrder ManagementeOrderProcess Management

Service & SupportCustomer Interaction ManagementeCare, Field Service eSupport Quality Management

Billing & Settlement On-line charging

Off-line charging Accounts Receivable

Collections Bill Formatting

PRM

Marketing & AnalyticsPredictive Analytics Campaign Opportunity Advisor

Delivery & Fulfillment

Provisioning Resource

Management

BillBill

21

Conclusion

“This is not telecom as usual. Barriers are disappearing; traditional industry lines are blurring.”

“We stepped away from our traditional product focus.”

“The customer drives everything. We’re changing to get closer… simpler as an organization…more aligned with our customers… Faster. Smarter.”Source: 2003 BCE Annual Report

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Neil PhilpottPresidentGlobal Billing Association

neil@globalbilling.orgDelivering Knowledge and Networking to the Billing community, world wide

Neil PhilpottDirector

Solutions StrategyAmdocs

neil.philpott@amdocs.com

Thank you!

23globalbilling.org

About the GBA

The Global Billing Association (GBA) delivers Knowledge and

Networking to the Billing community, world wide

25

Company Structure

a non profit making company registered in the UK

limited by Guarantee

has no shares

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

policy decided by Executive Council

26

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

27

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

28

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

Knowledge Integration

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Knowledge Integration

focuses on member’s issues

allows regional discussions

allows easy exchange of ideas/issues, globally

encourages effective communication with

wider industry

member driven

30

GBA themes for 2004

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

revenue management benchmarking, ARPU/AMPU, other industries

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

31

Contacts

Alex Leslie CEO alex@globalbilling.org

Neil Philpott President neil@globalbilling.org

John van t’Schip

Chairman john@globalbilling.org

David Smith Director david@globalbilling.org

Mindy Chohan Communications Manager

mindy@globalbilling.org