Management IQ - Intelligent Convergent Billing

Living Convergent Billing Hutchison 3G Austria

Kurt Teichenthaler Head of BSSMartin Baumgartner Billing Manager

23th – 25th November 2005Frankfurt, Germany

Kurt Teichenthaler Head of Business Support Systems

Hutchison  3G Austria GmbHGasometer CGuglgasse 12/10/31110 ViennaTel:        +43 (0)50 660-83200Fax:       +43 (0)50 660-83009          mobile: +43 660 660 83 200 Email:  kurt.teichenthaler@drei.com

Martin Baumgartner Lead of Billing & Payments

Hutchison  3G Austria GmbHGasometer CGuglgasse 12/10/31110 ViennaTel:        +43 (0)50 660-83213Fax:       +43 (0)50 660-83009          mobile: +43 660 660 83 213 Email:  martin1.baumgartner@drei.com 

Martin Baumgartner is the Billing Manager at Hutchison 3G Austria. His focus is on development and operations of the entire billing environment to enable charging and billing for all 3G Mobile Multi Media Services. In addition he is also responsible for Mediation, Interconnect Billing as well as for Payment & Collection Services.

He joined Hutchison as Billing Architect in 2002 to design and build up the converged Billing Environment for Mobile Multi Media Services.

Prior to joining Hutchison Martin Baumgartner worked for T-Mobile Austria where he acted as Project Manager and Billing Specialist within the IT department. Martin is working for over 7 years within the Billing area.

Kurt Teichenthaler is managing the BSS Development and Operations, covering Billing, CRM, Business Intelligence, EAI as well as ERP within Hutchison 3G. Based in Austria his focus is on delivering IT supported business processes to enable new Mobile Multi Media Services, offered under the brand name “3”.

He joined Hutchison as Billing Manager in 2001 building up an entirely new 3G Environment to support 3G Services.

Prior to joining Hutchison Kurt Teichenthaler worked for T-Mobile Austria where he headed the Operation of the Data Center. Previously he managed Intelligent Network Projects. Kurt has also supported different Telecommunication companies in Europe to successfully implement Pre Paid Products.

Living Convergent Billing

Understanding the challenges of billingfor 3G content and services

Key elements of a converged billing and charging architecture

Advantages and benefits on an entire new converged billing environment

New strategies on revenue assurance usingonline account and balance management

The Company

H3G Austria is a 100% subsidiary of Hutchison Whampoa Ltd.

• Hutchison Whampoa Limited (HWL) – revenue 2004: HK$ 179 billion (~ € 18.800 million) – over 210,000 employees in 52 countries – is among the largest companies listed on the main board

of the Hong Kong Stock Exchange.

• Hutchison 3G Austria – offers 3G services under the brand name "3" – acquired one of six licences and frequencies for the Austrian UMTS

network in November 2000 – Launched 3G Services in May 2003– 95% UMTS Market Share in Austria

Retail & Manifacturing

Property &Hotels

Ports & related Services

Energy &Infrastructure

Telecommunications

Internet

2G

3G

Facts & Figures Press Conference August 2005• Currently 11 H3G companies worldwide• 3International: over 10 Mio. Customers

• 3Austria: 266.000 Customers• 480 employees

• 56 EUR ARPU in Austria• 13% Non Voice ARPU

• UMTS Network Coverage 50%

The 3G Billing Challenge

UMTS is enabling

3G Services

3G - a new Media: Billing Objectives

3G Services Combines Telecommunication, Internet and Media (Radio, TV, Print).

Revenue Share with Content Partners

Online Charging to allow Cost Control & Fraud Management

Offer Standardized Billing Processes and Functionality for all Subscribers

Competing in a Highly Penetrated Market Requires Flexible Offers

Product Portfolio•Download (Event based)

– Videos like Weather, News, Sports, Playboy ...

•Info Services (Event based)– Location Services, News, Phonebook. ...

•Products (Event – e.g.: 30 day license)– Gaming

•Messaging (Event based)– e-mail, MMS, SMS, Chat, UMS

•Voice & Video Telephony (Time based)– Voice, Video, Mobile TV

•Internet (Volume based)– Internet Access

Products

The Billing Challenge

Event Based

Time Based

Volume Based

Pre-Priced

Circuit Switched

Voice CallVideo Call(Fax/Data Call)

Voice CallVideo Call(Fax/Data Call)

TAP Processing

Packet Switched

Zone Based IP Charging

TAP Processing

Messaging

SMSMMSEmail

MMSEmail

content Content Downloads/Pages

Content StreamingMobile TVLive Events

Content Streaming

All Content Categories

Key Elements of a converged 3G Billing Environment

IT Architecture designed in accordance

with Business Processes &

not vice versa

„Classical“ 2G Architecture

Mediation

Billing System

Pre Paid Post Paid

IN PrePaidService

Network

Hot BillingApplication

Real-timecharging domainBatch processing

domain

Converged Architecture - Overview

CommerceEngine

ConvergentBilling

TIBCO RV TIBCO AE

Circuit-switchedVoiceVideoFaxData

Packet-switchedInternet

MessagingSMSMMS

UMS (Email)

Content & Appl.Pages

DownloadsStreaming

InternationalRoaming

Mediation

Real-time chargingdomain

Batch processingdomain

Billing – Balance Management

• Balance Management is not a single functional area• Functionality is provided by:

• Commerce Engine• Interface with network elements for real-time service authorization• Reserves account credit while an event is in progress

• Rating & Charging• Calculates event charges

• Customer Account Model• Manages account spend control balances• Dispatches spending alerts

Where is now the difference between Pre and Post Paid?

0

Charges Incurred

Payment Made

Payment Made (top-up)

Charges Incurred

PositiveBalance

Pre-Pay

Post-Pay

Limit

Limit

NegativeBalance

Advantages and benefits having a converged billing environment

Product Example – Scope• Tariff for contract customers having a guaranteed monthly spend

limit

– Activated via normal post paid process

– Runs thru credit verification

– Able to choose monthly pre paid amount

– Has a monthly recurring charge & free units

– Receives monthly invoice & usage information

– Has a contract binding period

– Can use all Products except international roaming and VAS

– Can top up his account separately

– Guaranteed invoice limit!

– Ability to offer existing Billing Packages like 100SMS / month for 3 EUR

– Offer this product to all customers (consumer & cooperate customers)

Implementation• New services & tariffs created or adopted in the

converged Billing Environment

– Creation of new tariff within Billing

– Creation of Tariff bundles for POS

– Update Business rules for customer life cycle (tariff

changes, upgrades, …)

– Automated process for money back guarantee within

Billing

– Automated process for account top up in advance

Non converged Architecture Challenge

Implementation only possible on IN-PPS Service due to online charging requirement

Potentially not all Services accessible (eg: Content) or needs at least further investigation to offer full Post-Paid Portfolio

Tariff Change to real Post Paid Tariff

IN PPS Service is normally not activated via Post Paid process (eg: Credit Verification, Address Check, etc)

IN PPS Service does not support Contract Binding Period

IN PPS does normally not support Invoice Creation

No chance to handle this service in a customer hierarchy because of the use of different systems

Figures on ImplementationTotal Duration of Project

Scoping&Requirements 4 weeksDesign & Development 2 weeks! Test 3 weeks

Total 9 weeks from idea to Commercial Launch

Total Effort (IT) 150MD

Try to calculate & implement in a not

converged architecture!

IT as Business enabler for new

Product Ideas!

New Strategies on and Revenue Assurance

Account & Credit Management

•Every Account has it‘s own credit limit

and shadow credit limit•Credit limit used to approve event in real-time•When a limit is breached billing sends a notification to external systems•Credit limits consider full account balance

•Invoices•Payments/ Credits•Adjustments

Account & Credit Management• Online Balance Management enables

– Online customer authorization for specific services– Events are authorized, reserved and rated online– Having the customers account online enables

real time Credit Management– Enables Cost Control for all your customers

• Credit Management enables– Manage the customers credit liability on his account– Consider Collection of not paid invoices in his credit limit– Consider current usage online - High Usage Prevention– Alarming on credit breaches

And your IT figures?No expensive implementation & maintenance of different businessprocesses for Pre & Post Paid – use the same ones!

Use your existing Billing Packages (eg: 100 SMS Add On for 3 EUR per month) also for Pre Paid customers

No Issues on tariff changes between pre & post paid

Save OPEX on lean architecture & transparent processes

Save time & money on further implementations

Gain business benefit on T2M & new possible features for

Marketing & Finance

The Future is Converged!

Thank You !

G