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

© 2012 Acision BV. All rights reserved

Real Time Charging – how to help customer experience November 2012

Chris White

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

Slide Number: 2

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


Market size

Slide Number: 3

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2010 2011 2012 2013 2014 2015 2016

Re

ven

ue

(mill

ion

s)

Revenue Associated With Different Sectors

Policy

Active Mediation

Real Time Charging

Prepaid

Data Source:-

OSS Billing Report

Analysis Mason


Market evolution

Slide Number: 4

Voice

Messaging

Access

VAS/OTT

Time

Ma

rke

t A

cti

vit

y/F

oc

us

‘Hyp

e’

FUTURE

Operators Dilemma (And Opportunity):- The Fourth Wave Model proposed by Chetan Sharma Consulting 2012

NOTE – Axis labels are changed from the original model

Subscriber Penetration

R

evenue


Some Market Touch Points

Slide Number: 5

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

2005 2006 2007 2008 2009 2010 2011

Re

ven

ue

Pe

r M

B -

USD

Re

ven

ue

Pe

r Te

xt M

ess

age

, R

eve

nu

e P

er

Vo

ice

M

inu

te -

USD

Operator Revenue Microtrends (US)

Rev/MoU Rev/Txt Rev/MB

(c) Chetan Sharma Consulkting 2012

• ‘3’ UK claim:-

– 90% of network load = data

– This data load generates ~ 30%

revenue

• USA market:-

– 85% traffic = data

– Generates 39% revenue

– Every 52C new data fees is not

off-setting 96C lost voice fees 0

100

200

300

400

500

600

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Tota

(UL

+ D

L) m

on

thly

tra

ffic

(P

eta

Byt

e/M

on

th)

Voice

Data

Total Monthly Voice And data Measured by Ericsson

• Implications:-

– Voice/Messaging subsidising

the data explosion

– Can only be sustained for a

finite time – Ovum claim

possible until 2016


Impact of the market evolution

Simple questions?

1. Will operators invest in SS7 voice

systems?

2. How do they generate revenue

form ‘access’

3. How can they encourage users to

pay for data? 1. Users still unsure of what they get for

say 500Mb

4. Can operators gain revenue from

data services outside $/Mb model?

Slide Number: 6

0

200

400

600

800

1000

1200

2011 2012 2013 2014 2015 2016

Re

ven

ue

($ B

illio

ns)

Revenue by Service

Voice

Data (access)

Messaging

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016

Effe

ct A

nn

ual

Usa

ge (

Exab

yte

s/yr

)

Effective Capacity Needs By Service

SMS

Voice

Data


Operators feedback

Slide Number: 7

0%

20%

40%

60%

80%

yes No

Does your existing post paid system provide real time (<1s) data collection and rating?

0%

20%

40%

60%

80%

100%

Yes No

Do you think that you post paid system should provide real time capability

0 1 2 3 4 5

Tiered pricing

Shared balance bundles

Usage bunldes such as hybrid accounts

Communication direct to customer device

Loylaty point control

How Important (1-5) are different option

Data from report “Future Of Mobile Billing” issued by Telecoms Intelligence

Sponsored by Openet

0

10

20

30

40

50

60

70

Very Important Important Neutral Not Importants

Re

spo

nd

ants

(%

)

Importance Of Real Time Control For Post Paid Data Usage


Benefits of real time rating / charging /

balance management

OPERATOR • Better control over ‘bad debt’

• Improved customer loyalty

• Customers more likely to try

new services – less risk of bill

shock

• Potential to reduce customer

care costs – introduce more

‘web self care’

SUBSCRIBER • Ability to control spend

• Have real time information on

spend

– Subscribers struggle to equate $$

to Bytes!

– Unlike circuit switched voice

• Greater transparency over

what services cost

• Potential to “customise” their

own tariff plan

Slide Number: 8

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?

Slide Number: 9


Enhancing Post Paid For Real-Time

Voice

Data

Slide Number: 10

MSC

SMSC,

MMSC,

GGSN,..

SCP

Diameter

Router

Post

Paid

CD

Rs

SS7 voice

To Provide Real-Post Paid

ACE

• Subscribers benefit through: – Instant information on spend

– Ability to control spend – no bill shock

– Notifications at set spend levels

• Operator benefits through: – Reduced churn through bill-shock

– Ability to manage ‘bad debt’

– Re-use of existing solutions

– System low cost as sized only for specific

subscribers

– Ability to grow solution

• Key Points – Solution can do data only – so no need for SCP

– Potential to work with existing SCP


Enhance AND Extend Life of Existing Prepaid

Voice Data

Slide Number: 11

MSC

SMSC,

MMSC,

GGSN,..

SCP Diameter

Prepaid

SS7 voice

ACE

• Subscribers benefit through: – 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

churn

– ACE is very high performance so small system

managers can scale

• Solution can handle data AND voice (SS7) – SS7 Voices requires an SCP

– Integrate to existing system – a possibility

– Supply new SCP

• Key current focus is data:- – Messaging traffic (SMS, MMS)

– Web traffic

– VoIP

– OTT services


Hybrid Accounts – Data Only

Data

Slide Number: 12

SMSC,

MMSC,

GGSN,..

Diameter

Router

Post

Paid Prepaid

CD

Rs ACE

• Subscribers benefit through: – Instant information on data activity/spend

– 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: – Reduced churn through bill-shock

– Ability to manage ‘bad debt’

– Re-use of existing solutions

– System low cost as sized only for data only

– Ability to grow solution

– Ability to offer family packages – ‘sticky service’

– Supports policy AND quota in one product

• Target accounts – Wanting to launch hybrid/convergent data services

– Supports 2G, 3G, LTE/4G - systems

• Key Points – Solution can do data only – so no need for SCP

– Potential to work with existing SCP

Gx


Hybrid Accounts Solution

Voice Cash SMS Data

Post paid

Billing

System

Voice

Data

ACE

Diameter

Balance

Notification

Core

Credit

Post Paid Service

SS7

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

Bill Issued

Bill Not Paid

Bill Not Paid

Slide Number: 13

CDR Feed


o Challenge:

– Setar wanted to:

• Enable parents to cap their exposure to bill shock on their

children’s phones

• Enable users to have a mixture of pre-paid and post-paid

services on a single phone

o Solution:

– Acision offered a charging adjunct solution allowing for:

• Flexible bundling capability

• Integration to pre-paid and post-paid system

• A stepped approach to replace existing pre-paid system

o Impact:

– Parents now have complete confidence in monthly bill

– System being expanded to incorporate mobile data control

– Additional ‘pay to use’ bundles added to support specific

promotions and offers

– Legacy pre-paid system now decommissioned

– >20% of new subscribes on Hybrid plans

Hybrid Accounts Case Study (Setar)

Acision provides Setar with an

award winning hybrid account

solution allowing flexible

charging integration with post-

paid.

Setar is the Quad Play provider

in Aruba and expanding in the

region

Systems communicate over

API to allow full account

management

CDR Transferred to post-paid

for billing

All customer care is via Real

Time System – enhanced to

support usage statement

All customers can have real

time account information over

USD and SMS

- Two pre-paid systems;

One post-paid system

Slide Number: 14

http://partners.intinfra.com/workspace/000337/Testing area/Customer_Info_Page.aspx?View=EA26D1C9-8A51-42F9-9A71-6BA5A4BCA93B&SelectedID=30


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

Slide Number: 15


For Group Accounts

• Closed User Group:- – SMS Example

• SMS between group members charged from common bundle

• SMS to non members charged to main balance

• Open User Group:- – SMS Example

• SMS sent from the group to other people are from the common bundle

• Other services are charged – see Paul-to-Dave voice call

Paul

Lisa

John

Julie

SM

S

Dave

SM

S

SM

S

SM

S

SM

S

SMS

Charged to Paul’s

main balance

SM

S

Paul

Lisa

John

Julie

SM

S

Dave

SM

S

SM

S

SM

S

SM

S

SMS

Charged to Paul’s

main balancePaul

Lisa

John

Julie

SM

S

Dave

SM

S

SM

S

SM

S

SM

S

SMS

Charged to Paul’s

main balance

SM

S

Paul

Lisa

John

Julie

SM

S

SMS

Charged to Paul’s

main balance

Dave

Anne

Chris

Mary

Voice

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

$50 Talk

$10 $20 $10 $15 $20

Text

$10 $15

Internet

$10

TV

Buy

I Want Left over: 300

Mins

200

Txts

1Gb

Data

1 Mnth

TV

$50 $30 $20 $10 $0

Version No: 12345 / Status: DRAFT © 2012 Acision BV. All rights reserved © 2012 Acision BV. All rights reserved © 2010 Acision BV. All rights reserved Slide Number: 18

Un

limit

ed

IM

$2

5 A

pp

s $

3

Mo

bile

TV

$

5

2 M

b

$2

4 M

b

$3

.75

10

Mb

$

5

50

Mb

$

10

5 M

MS

$2

10

MM

S $

3.7

5

20

MM

S $

5

50

MM

S $

10

10

SM

S $

2

20

SM

S $

3.7

5

50

SM

S $

8

75

SM

S $

11

10

0 S

MS

$1

4

20

0 S

MS

$2

5

Addressing the BYOT market - Enabling

rapid provisioning of flexible bundles 1

0m

ins

$5

20

min

s $

9

50

min

s $

20

10

0m

ins

$3

5

75

min

s $

29

20

0m

ins

$6

5

Customer choice:

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

• Faster time to market • Greater consumer control • Drastically reduced management overhead • Fit alongside existing systems


Graphical Tariff Management For Advanced

Bundles

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

Market Segmentation

Could be the same

tariff plan just bundle

availability changed


Virtual Landlines

http://portal.intinfra.com/workspace/000181/briefing/Acision Imagery High Res/Acision Channel Partner Programme Image.jpg


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

Slide Number: 21

http://site.globe.com.ph/web/guest/duo


Mobile and Landline in One

Manila Other areas

Free

Free

Normal rates OR

1) How much does it cost?

P25 = 1 day

P450 = 30 days

P125 = 5 days

P350 = 14 days

2) Once you are subscribed to DUO, you

will be given your DUO landline number.

Your mobile phone will now have two (2)

numbers:

•Your current mobile number

(ex. 0917-XXX-XXXX)

•Your DUO landline number

(ex. 02-XXX-XXXX)

3) Upon activation, you can now make the

following calls free of charge:

•Your DUO phone to any landline

•Any landline to your DUO phone

•Your DUO phone to another DUO phone

Calls made to other mobile numbers or landlines

outside the covered area/s are charged regular mobile rates.

4) To call any landline: dial area code +

landline number.

To call another DUO number: dial area code +

DUO number of person you are calling.

No need for keywords or special prefixes!

Slide Number: 22

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

Acision’s Solution For Globe

Why Acision working with Computaris?

Voice

Two prepaid

systems from 2

different NEPs

Acision

Flexible

Charger

CAMEL (prepaid)

INAP (postpaid)

Acision

Location

Gateway

HLR

Cell ID

look up • 4 months from PO to service launch

• Seamless integration with existing

postpaid and prepaid platforms

• Supports fixed and mobile

• No need for IN swap (adjunct)

• Integrated location solution (Cell ID)

• Product-based solution with roadmap

• Flexibility to support other types of

bundles including SMS and data

Globe ‘own’

post paid system

Acision Location Gateway – developed by Computaris Slide Number: 23

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

Globe’s Results

• New market penetration for Globe

– 70,000 users in first 4 months launch

• Differentiation from other operators

– Sun Cellular has a similar offering but users have

to use a dual SIM card handset

– Competition has seen 20% drop in activations

• Convergence of their service offerings

• Cost saving – one solution for all systems

• Future Proof

– Deploying “One country, one rate”

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)

convergence, as the market demands more efficient and

effective means of communicating,” says Ferdinand de la

Cruz, head of Globe Telecom’s Consumer Wireless

Business Group. “For this reason, Globe is breaking the

barriers between mobile and landline services by coming

up with this revolutionary two-in-one service.”

De la Cruz is referring to Duo, the world’s first fully-convergent

solution that works across both fixed and mobile networks for

cell phone users. Together with Acision, the world’s leading

messaging company, Globe launched this breakthrough service

last April to boost voice network traffic by offering unlimited

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.”

Slide Number: 24

http://site.globe.com.ph/web/guest/duo


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

Slide Number: 26

To view the recorded webinar, please go to:

http://webexpo.computaris.com/webinars/acision and register.

http://webexpo.computaris.com/webinars/acision

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

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