Mobile Billing Systems

Developing a Next Generation

Billing System for Hutchison 3G Austria

Martin Baumgartner Billing ArchitectRoman Göbel Billing Manager

27th – 30th Sep 2004Budapest, Hungary

Building a 3G TolerantBilling Environment

Understanding the challenges of billingfor true 3G content and services

Key requirements for a 3G Billing System

Assessing how 2G operators face significant challenges

around migrating from legacy billing systems primarily

designed to rate and charge voice services

The Company

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

• Hutchison Whampoa Limited (HWL) – revenue 2003: HK$ 145.609 Mio. (~ € 15.277 Mio.) – over 170,000 employees in 39 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 18. August 2004• Currently 10 H3G companies worldwide

• 3International: over 3,2 Mio. Kunden

• In just 3 month the customer base was doubled compared to the previous 15 month

• 3Austria: over 83.100 Kunden

• In the last 5 month the customer base has triple compared to the previous 10 month

• 60 EUR ARPU in Austria

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 for Cost Control & Fraud Management

Offer Standardized Billing Processes and Functionality for all Subscribers

Competing in a Highly Penetrated Market Requires Flexible Offerings

Offered Products•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, Alerts, MMS, SMS, Chat, UMS

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

•Internet (Volume based)– Internet Access

The Door to Mobile Multi Media.

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

Messaging

SMSMMSEmail

MMSEmail

content Content Downloads/Pages

Content Streaming

Content Streaming

All Content Categories

Building up entirely new Systems & Processes for 3G

Objective

Converged Billing to align Billing Processes

Focus the Billing System on Billing Functionalities

Quick Time to Market – Flexibility!

Integrated Third Party Settlement

Understanding the 2G Migration challenge

„Classical“ 2G Environment seen from a Charging Point View

Mediation

Billing System

Pre Paid Post Paid

IN PrePaidService

Network

Hot BillingApplication

Real-timecharging domainBatch processing

domain

Advantages/Disadvantages

+ Prooven Architecture+ Generally covers 2G Requirements

- No Pre/PostPaid Convergence- High Integration Costs (IN + Billing System)

- No Real Time Charging- Fraud – No Real Time Cost Control

Our Understanding

of a Convergent

Billing Environment

Network 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 – OverviewAustrian Billing Solution

Products & Services

Rating & Charging

General LedgerSupport

Accounts Receivable

Customer AccountModel

Billing & Invoicing

Commerce Engine

GL Code Accruals

Packages Products Discounts Free Unit

Mediation Rating Roaming Tax

Payments Allocations

Account Info Credit Limits

Billing Process Invoice Layout Invoice Delivery

Real-time credit reservations Pre- and Post-Paid Convergence

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 (credit limits)•Dispatches spending alerts

BSS Billing – Commerce Engine

BSS Billing – Commerce Engine

BSS Billing – Commerce Engine

Billing – Credit Limits

•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

Enabling 3G Services with a

2G Environment?…

2G Migration Challenge

Enable Flexible Charging & BillingCharging of Expanded Product Portfolio

Converged Billing to Minimize Costs Shorten T2M with a Converged Billing

Online Charging to Enable Cost Control & Assurance of your Revenue

Migrating to a New Billing Architecture Versus Extending an Existing Environment?

Are YOU ready - now to

launch with …

G

Thank You