William McKinneyDirector, Solutions Management
January 31, 2001
TelecommunicationsBilling Strategy
Billing is Customer Care
OSS Component Penetration
0%10%20%30%40%50%60%70%80%90%
100%
Billing OrderMgmt
CustomerCare
TroubleMgmt
NetworkMgmt
Source: Business Edge Solutions
The Changing Telecom Marketplace
• Deregulation• Emerging Market
Segments• Competitive Pressure
• Mergers andAcquisitions
• Bill and ServiceConvergence
• New TechnologyCapabilities
Areas of Revenue Loss
Source: PricewaterhouseCoopers
Order Entryand Provisioning
Billing NetworkOperations
Sales andMarketing
Other
The Five Segments of Billing
BillingService Bureau
CICService Bureau
CC&BConsulting
CC&BIntegration
CC&BPlatform
BillingService Bureau
CICService Bureau
CC&BConsulting
CC&BIntegration
CC&B Platform
Billing Competition
• Convergys• Alltel• EDS• Amdocs• Spectrum Telecorp• Sema Group• CSG Systems
• Convergys
• Convergys• Portal• Keanan (Lucent)• LHS (Sema Group)• Daleen• CSG Systems• Amdocs• Saville Systems (ACD)
• KPMG• Anderson
Consulting• Pricewaterhouse
Coopers• Cap Gemeni E & Y• EDS• Deliotte
Consulting• IBM• Telcordia
• KPMG• Anderson
Consulting• Pricewaterhouse
Coopers• Cap Gemeni E & Y• EDS• Deliotte
Consulting• Sema Group
TeleTech Billing SWOT
Strengths• Service Bureau Culture• Strong CIC Presence• Existing Telecom Clients• Data Center Infrastructure
Opportunities• Margin Growth• Increased “Stickiness”• Top-line Growth• Increased Multiple
Threats• Risk of Current Accounts• Investment w/o Return• Loss of Focus• Slow Adoption Rate
Weaknesses• No Billing Experience• No Billing IP or Process• Not Viewed as Credible
Multiple EnhancementClosing Price 01/24/01
TeleTech P/E = 17 Convergys P/E = 40
Price/Share
Earnings/Share
$16 1/16
$0.95
$49 9/16
$1.23
TeleTech’s Billing Strategy
TeleTech’s Billing Strategy
BillingService Bureau
CICService Bureau
CC&BConsulting
CC&BIntegration
CC&BPlatform
TeleTech’s Billing Strategy
BillingService Bureau
CICService Bureau
CC&BConsulting
CC&BIntegration
CC&BPlatform
TeleTech’s Billing Strategy
BillingService Bureau
CICService Bureau
CC&BConsulting
CC&BIntegration
CC&BPlatform
TeleTech’s Billing Strategy
BillingService Bureau
CICService Bureau
CC&BConsulting
CC&BIntegration
CC&BPlatform
TeleTech’s Billing Strategy
BillingService Bureau
CICService Bureau
CC&BConsulting
CC&BIntegration
CC&BPlatform
Near-term Strategy
Rationale• Quickly Go to Market• Build Credibility• Create New CC Opportunities
Deliverables• Alliance Management• Concept Collateral• Engagement Process
Long-term Billing Target Markets
CableVideoInternetVoice
WirelessMobile TelephonyMobile PrepaidPaging SatelliteWireless Data / IPWireless Local Loop
WirelineLocalLong DistanceDedicated ServicesIP Services
LAAP EUNA
=Primary Market =Secondary Market
Long-term Billing Target Customers
XLegacy
Tier 1
Competitive
Incumbent
Tier 2
Opportunistic
Tier 3
Billing and TeleTech’s Strategy
Questions and Answers
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