How to optimise Inter Carrier Settlements · Doc10-Lacroix Issues and solutions Inter carrier...

© Intec Telecom Systems PLC 2001

How to optimise Inter Carrier Settlements

Didier Lacroix+33 1 45 23 92 92

Didier.Lacroix@intec-telecom-systems.comwww.intec-telecom-systems.com

Seminar on Costs & Tariffs for the TAFGroup Member Countries

Niamey (Niger), 23-25 April 2001


Agenda

u Objectives and Methodology

u The Interconnect Process

u Issues

u Systems vs Interconnect Process

u Conclusions


Objectives & Methodology

u Objectivesl Assess the major issues faced by operators regarding inter-

carrier settlementl Propose solutions in terms of process and IT systems

u Methodologyl Workshops with operatorsl Based on optimisation of the InterconnecT process


The Interconnect Process

Network Operator Network Operator

Reconciliation Settlement

Call Detail Records

Account Mgt


NegotiationsOutgoing Statement

Incoming Statement

( ; (;Operator A Operator B

InvoicingMediation

ITU Pricing

IcT Pricing Reconciliation Settlement

OutgoingInvoice Negotiations

Payment

Payment

Incoming Invoice

Collection


Where an Operator is unable to identifyand invoice interconnect traffic, theother Operator(s) may provide the

required billing information

Where an Operator is unable to identifyand invoice interconnect traffic, theother Operator(s) may provide the

required billing information

Issue 1 : Agreement Options

u Declaration

u Invoicing

Reconciliation Settlement Account Mgt

InvoicingMediation

ITU Pricing

IcT Pricing Reconciliation Settlement Collection

Quicker settlement

Start of payment conditions


Issue 1 : Risks with Declaration

u Inability to raise and verify invoicesu Lack of management informationu Accuracy

l Out of date ratesl Numbering errorsl Day elementsl Duplicate, missing and ineffective callsl Rounding

u Invoices largely based on upstream operators declaration


Issue 2 : Reduction of TAR

u More accuracy neededu Reduce and measure errors and lost trafficu Minimise cost :

l expand usage of hubbing trafficl take advantage of discounting

u Bring new traffic (hubbing, refiling, transit,…)


InvoicingMediation

ITU Pricing


High risk of error /

Additional delay

Minimise cost


Issue 3 : Traffic is increasing

u IT systems cannot copeu Scalability is key!u System Architecture must be independent from

System Functionalityl CPU increase should lead to throughput increase


InvoicingMediation

ITU Pricing


Scalability


Issue 4: Increasing Complexity

u Ability to price new types of trafficl more and more servicesl more and more complex rating rulesl Flexibility to implement new product and services

u Controlled Impactl Pricingl Reconciliation (as consequence)l Mediation (for providing required information)


InvoicingMediation

ITU Pricing


Complexity



InvoicingMediation

ITU Pricing


InvoicingAutomation of data entry

Issue 5 : Reduce Settlement delay

u Invoicingu Reduce adjustments

l by improved pricing practicesl by automation of data entryl by using a flexible billing system


Issue 6 : Reconciliation delay

u Quicker reconciliation processl automatic exchange of information with operatorsl automatic loading of reference datal use of effective start and end datel verify traffic completenessl full drill down facilities for better analysis

• re-pricing, re-processing functions


InvoicingMediation

ITU Pricing


Analysis ToolsAutomation



InvoicingMediation

ITU Pricing


Process control

Issue 7 : Negotiation Position

u Full control over the Interconnect processl Get accurate informationl Full call tracability

u Stronger negotiation positionl Auditable systeml Ability to prove other operators’ errors

u Competition


Issue 8 : Face a dispute

u Get accurate informationu Ability to dig in the information and sort out the

relevant information


InvoicingMediation

ITU Pricing


Accurate information


Process vs Systems


Reconciliation Settlement

Call Detail Records

Account Mgt


NegotiationsOutgoing Statement

Incoming Statement

( ; (;Operator A Operator B

InvoicingMediation

ITU Pricing

IcT Pricing Reconciliation Settlement

OutgoingInvoice Negotiations

Payment

Payment

Incoming Invoice

Collection

MediationInterconnect BillingAccounting

Least Cost Routing

Least Cost Routing


Conclusion

u For a small investment l organise your billing department and Systems along the

Interconnect process

u You can l save a lot of moneyl be in a strong negotiation position

u Some experiences l Swisscom, France Telecom, SPT, MATAV, Telkom SA, TPSA,

VSNL,….

How to optimise Inter Carrier Settlements · Doc10-Lacroix Issues and solutions Inter carrier...

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