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© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
Research Report
Convergent billing systems are inevitable: it is only a
matter of when and how
January 2013
Justin van der Lande
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
Contents
5. Executive summary
6. Executive summary [1]
7. Executive summary [2]
8. Recommendations
9. Recommendations for CSPs
10. Recommendations for vendors
11. Forecast and market shares
12. Convergent billing solutions address cost reduction and convergent
services and will provide the most growth in the billing systems market
13. Mobile services will be increasingly supported by convergent billing
solutions, which will divert spending from prepaid and postpaid solutions
14. Convergent billing solutions are set for high growth in all markets, but
still account for a minor proportion of total billing solutions revenue
15. Convergent billing solutions are predominantly focused on mobile, but
will increasingly often be used to support fixed-line mobile convergence
16. Convergent billing
17. Market drivers
18. New service revenue is cited as the most significant driver for adopting
convergent billing systems
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19. Market drivers [1]
20. Market drivers [2]
21. Market drivers [3]
22. Transformation strategies
23. Migrations that use adjunct systems provide the lowest risk for CSPs
when implementing convergent billing solutions
24. An upgrade approach to deploying convergent billing solutions can
provide CSPs with a relatively secure project with a known vendor
25. ‘Big bang’ transformation projects are high risk, but can lead to
significant gains in the short and long term
26. The ‘adjunct’ migration approach is the least risky option for CSPs, but
operational transformation will be needed to support it
27. Business environment
28. Changing business models and customer needs are altering the
requirements of billing systems
29. Market definitions
30. Convergent billing systems
31. Convergent billing system key component relationships and
relationships to adjacent systems
Slide no. Slide no.
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
Contents
32. Case studies
33. Convergent charging deployment case studies [1]
34. Convergent charging deployment case studies [2]
35. Convergent charging deployment case studies [3]
36. Company profiles
37. Amdocs
38. Comverse
39. CSG International
40. Huawei
41. Nokia Siemens Networks
42. Oracle
43. Orga Systems
44. Redknee
45. About the author and Analysys Mason
46. About the author
47. About Analysys Mason
48. Research from Analysys Mason
49. Consulting from Analysys Mason
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Slide no.
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
List of figures
Figure 1: Convergent billing revenue, worldwide, 2011–2016
Figure 2: Billing systems revenue for mobile services by type, worldwide,
2011–2016
Figure 3: Convergent billing revenue by region, worldwide, 2011–2016
Figure 4: Convergent billing revenue by service sector, worldwide,
2011–2016
Figure 5: Convergent billing market shares by revenue, worldwide, 2011
Figure 6: Primary reason for introducing a convergent billing solution
Figure 7a: Market drivers for convergent billing systems
Figure 7b: Market drivers for convergent billing systems
Figure 7c: Market drivers for convergent billing systems
Figure 8: CSP chosen migration path to a convergent solution
Figure 9: Advantages and disadvantages of the upgrade approach to
convergent billing
Figure 10: Advantages and disadvantages of the transformational approach
to convergent billing
Figure 11: Advantages and disadvantages of the adjunct system approach to
convergent billing
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Figure 12: Key functions of convergent billing systems
Figure 13: Key components of convergent billing systems
Figure 14: Amdocs convergent billing products profile
Figure 15: Comverse convergent billing products profile
Figure 16: CSG International convergent billing products profile
Figure 17: Ericsson convergent billing products profile
Figure 18: Huawei convergent billing products profile
Figure 19: Nokia Siemens Networks convergent billing products profile
Figure 20: Oracle convergent billing products profile
Figure 21: Orga Systems convergent billing products profile
Figure 22: Redknee convergent billing products profile
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how 5
Executive summary
Recommendations
Forecast and market shares
Market drivers
Transformation strategies
Business environment
Market definitions
Case studies
Company profiles
About the author and Analysys Mason
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
Executive summary [1]
Convergent billing systems have been available for years, but CSPs have been slower than predicted to implement multiple
payment types on a single platform.
The drivers for moving to a convergent billing system are still valid and are based on:
reducing costs: system rationalisations enable CSPs to save on licence, integration and operational costs
incremental revenue: launching new types of services such as those that are bundled or hybrid can enable CSPs to generate
additional revenue.
Until recently, these drivers were not sufficient to deploy convergent billing systems, but the need to invest in mobile broadband
services and falling margins have led CSPs to launch new services that need convergent billing.
Projects that transform installed billing systems are complex, risky and expensive, which provides CSPs with a strong disincentive
to move established subscribers over to new systems. Adjunct systems that can be deployed more easily and involve a slower
migration often provide more-manageable projects, but running multiple systems has additional overheads and costs associated
with it.
The billing systems that many CSPs in emerging markets have deployed are capable of supporting convergent services, but are not
run in convergent mode and mainly offer prepaid services. These deployments have occurred because newer billing systems
inherently support convergent solutions as a part of their functionality and CSPs have specified this capability in their tendering
processes. This helps to future-proof new systems and provides CSPs in emerging markets with a platform that supports postpaid
mobile accounts when they are needed.
CSPs in emerging markets have a higher percentage of convergent billing systems than those in developed markets because CSPs
in emerging markets have deployed their billing software more recently and have more of a need to control costs. CSPs in
developed markets are implementing convergent billing systems as they deploy mobile broadband services such as LTE, mainly as
adjunct systems.
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© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
Revenue generation
48%
Cost reduction
33%
Future-proofing
19%
New service revenue is cited as the most significant driver for adopting
convergent billing systems
In a recent market survey by Analysys Mason, nearly half of
the respondents cited the ability to introduce new services as
the justification for implementing a convergent billing solution.
Mobile data services were most often given as the service
type that triggers this.
Cost reduction is also cited as a justification, but not on its
own. However, some organisations reported that they had
performed transformation projects, which resulted in
convergent billing systems, in order to replace older IN
platforms that had been affected by a significant increase in
the number of subscribers and associated costs.
Justification based on cost reduction or revenue generation
may be significant, but as older billing systems are retired
because new networks require support for different functions,
billing systems are naturally replaced and upgraded. These
replacements tend to support convergent services by default.
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Figure 6: Primary reason for introducing a convergent billing solution
[Source: Analysys Mason, 2013]1
1 Question: “Please specify the drivers for convergent billing as a percentage of total installs
into the following categories: A – cost reduction; B – increased revenue; C – future proofing”;
n = 12 vendors with a combined installed base of more than 700 CSP customers.
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how 46
Executive summary
Recommendations
Forecast and market shares
Market drivers
Transformation strategies
Business environment
Market definitions
Case studies
Company profiles
About the author and Analysys Mason
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
About the author
Justin van der Lande (Senior Analyst) leads the Revenue Management programme (formerly Billing), which is part
of Analysys Mason’s Telecoms Software research stream. He specialises in business intelligence and analytics
tools, the functionality of which cuts across all of the research programmes in this area. He also provides project
management for large-scale projects within our Telecoms Software research. Justin has more than 20 years’
experience in the communications industry in software development, marketing and research. He has held senior
positions at NCR/AT&T, Micromuse (IBM), Granite Systems (Telcordia) and at the TM Forum. Justin holds a BSc in
Management Science and Computer Studies from the University of Wales.
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© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
About Analysys Mason
Knowing what’s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the
complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist
knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research.
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Consulting
Our focus is exclusively on TMT.
We support multi-billion dollar investments, advise clients on
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and advise on operational performance, business planning and strategy.
We have developed rigorous methodologies that deliver tangible
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For more information, please visit www.analysysmason.com/consulting.
Research
We analyse, track and forecast the different services accessed by
consumers and enterprises, as well as the software, infrastructure
and technology delivering those services.
Research clients benefit from regular and timely intelligence in
addition to direct access to our team of expert analysts.
Our dedicated Custom Research team undertakes specialised and
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For more information, please visit www.analysysmason.com/research.
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
Research from Analysys Mason
We provide dedicated coverage of developments in the telecoms, media and technology (TMT) sectors,
through a range of research programmes that focus on different services and regions of the world.
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Alongside our standardised suite of research programmes, our Custom Research team undertakes specialised, bespoke research
projects for clients. The dedicated team offers tailored investigations and answers complex questions on markets, competitors and
services with customised industry intelligence and insights.
To find out more, please visit www.analysysmason.com/research.
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
Consulting from Analysys Mason
For more than 25 years, our consultants have
been bringing the benefits of applied intelligence
to enable clients around the world to make
the most of their opportunities.
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Our clients in the telecoms, media and technology (TMT)
sectors operate in dynamic markets where change is
constant. We help shape their understanding of the future
so they can thrive in these demanding conditions. To do
that, we have developed rigorous methodologies that
deliver real results for clients around the world.
Our focus is exclusively on TMT. We advise clients on
regulatory matters, help shape spectrum policy and develop
spectrum strategy, support multi-billion dollar investments,
advise on operational performance and develop new
business strategies. Such projects result in a depth of
knowledge and a range of expertise that sets us apart.
We help clients solve their most pressing problems,
enabling them to go farther, faster and achieve their
commercial objectives.
To find out more, please visit
www.analysysmason.com/consulting.
© Analysys Mason Limited 2013
Convergent billing systems are inevitable: it is only a matter of when and how
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