Webinar: charging and billing for the digital economy

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inform innovate accelerate optimize

Charging & Billing for the Digital Economy

Sponsored by:

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Today’s speakers

Corine Suscens Senior Marketing Manager Openet

Tony PoulosMarket Strategist, Editor IRM Newsletter & ChannelsTM Forum

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Solving three core

challenges for any business

AgileBusinessProgram

Transform IT & operations to reduce costs,

minimize risk and improve time-to-

market

Customer Engagement

Program

Maximize market share,

customer growth and loyalty

OpenDigital

ProgramDeliver new

services quickly, easily and securely with partners

Business ProcessOptimization

Revenue Management

Cloud and Virtualization

IT & OperationsTransformation

Big Data Analytics

Rapid PartnerOnboarding

Digital PartnerSecurity

End-to-End Service Quality

Managing Moneybetween Partners

Big Data Analytics

Experience Management

Cyber Security

Customer Privacy

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Industry Context

“Over The Top” challenge Emerging technologies Explosion of connected

devices

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The ‘Now’ Generation

They expect to be connected anytime, anywhere

They use the internet in real-time, all the time

They expect updates in real-time

They expect information in real-time

They want to be able to manage their accounts in real-time

They buy stuff in real-time

CSPs need to have real-time systems in place to make money from new services enabled by high

speed mobile data

© 2013 TM Forum | 6

Operators are asking

What will be the differentiators?

How can we maximize return on 4G/LTE/NGN investments?

How can we improve the customer experience?

How can we improve our business models?

What new opportunities can or should we invest in?

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How the TM Forum can help

Of course, we have Frameworx

Our Collaboration Program

Catalyst Program

Specialist reports and publications

Inside Revenue Management newsletter

Blogs

Co-operation with industry Thought Leaders

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What does it all mean?

As always, the measure of our success will not be how many new

services and products we devise but how effectively we can generate

revenue from them.

Effective, accurate and timely charging and billing will be key!

Webinar: Charging and Billing for the Digital Economy

Corine Suscens, Senior Marketing Manager, Openet23rd October 2013

10w w w . o p e n e t . c o m© Copyright 2013 Openet – Company Confidential

For Use Under Non-Disclosure Only

• The Future for Legacy IN Prepaid Charging and Traditional Billing • Research Findings and LTE Operator Case Studies

• Accelerating Innovation and Increasing ARPU in the Digital Economy• Research Findings and Operator Examples

• Key Use Cases and Operator Success Stories

Agenda: Charging and Billing for the Digital Economy



The Future for Legacy IN Pre-paid Charging and Traditional Billing



• Why are operators replacing IN systems with real-time charging / OCS• Complex, time consuming and costly to charge for data (e.g. data passes, shared

data plans, dynamic pricing models)• Dependency on IN vendors to develop and configure services• High total cost of ownership

• As voice becomes data with VoLTE, IN charging systems are no longer required

The Future for IN Pre-paid Charging Systems

Openet research 2013, 80+ operator respondents



• Traditional post-paid billing systems lack real-time capabilities• Restricts data innovation• Customers demand immediacy

• Silo-based architecture with IN pre-paid charging and post-paid billing systems means:• Slower time to market• No unified view of individual customers• Service restrictions depending on payment type

The Future for Traditional Billing Systems

Openet research 2013, 80 operator respondents



• OCS to provide one single real-time charging platform for all services:• Post-paid, Pre-paid, Data, Voice, RCS, LTE and all IMS services

• Solution also includes a Centralised offer catalog • Enabling sophisticated charging models, fast launch of services, reduced

complexity/TCO and maximum customer satisfaction• Sample use cases:

• Dynamic pricing models• Innovative device plans • Rich customer engagement • Combinations of services for

pre-paid and post-paid subscribers

T-Mobile Netherlands: Centralized Real-time Charging (OCS), Replacing IN Pre-paid Charging



• Convergent pre/post-paid and flexible data charging

• Capitalizing on existing infrastructure investment to launch next generation services, accelerate time to market, and offer more flexibility to customers

• Sample use cases: • In-app charging / billing• Shared data plans• Hybrid pre/post-paid accounts• Real-time usage visibility and notifications• Cross service promotions• Support MVNOs

LTE Operator in North America: Real-time Charging (OCS), Leveraging IN platform to support 3G & 4G services



Accelerating Innovation and Increasing ARPU in the Digital Economy



• Real-time charging/OCS capability that is truly flexible and convergent

• Innovation• Sophisticated data pricing plans & bundles• Dynamic pricing models

• Customer experience• All services to all customers,

pre-paid and post-paid• Flexible payment options, hybrid accounts, • Real-time visibility over cost and usage

• Cost effectiveness and faster time to market• A single charging platform for all services

The Central Role of Real-time Charging in Accelerating Innovation




• 73% of operators : PCC is important in enabling innovation

• Coordinate network resources with new options for revenue generation

• Ensure high quality experience• Real-time control, appropriate resource allocation

Further Innovation with Policy Controls Integrated with Charging (PCC)

Application specific pricing /

Zero rating

Data service passes

Content led

bundles

Speed tiers

& boost

Multi-device &

shared data plans

VoLTE control & charging

Split billing (home/work)

Traffic prioritization: e.g Premium customers

Intelligent Wi-Fi

offloading & bundles



• Create, launch and manage all offers to all customers in a central place • Simplicity and time saving

• Rapid campaign and bundle rollout

• Example: T-Mobile Netherlands

The Importance of a Centralised Offer Catalog in Accelerating Time to Market




• Real-time, on-device purchase and engagement • Real-time, context-aware offers • Offers with usage alerts

• 20% uptake with an operator

• Upsell add-ons to base contracts • 60% of Pelephone customers buy

data add-ons: 4.1 Euro ARPU lift*

• On-device, real-time cost and usage visibility

• Operators: revenue maximization and cost savings

• Customers: flexibility, convenience, visibility

• Requires PCC extended to the device

Most successful Strategies to Stimulate Loyalty & ARPU: On-Device Purchase and Engagement



Key Use Cases and Operator Success Stories



PCC Use Cases Being Rolled Out



• Multiple users and devices can share a common pot of data

• Verizon: 30% of accounts on a ‘share everything’ plan

• ARPA is up 6.9% • 34.9M retail post-paid accounts: 2.67

connections per account

• AT&T: almost 10M customers on Mobile Share plans

• over 25% of those accounts opting to go with a data plan with 10GB or over

Operator Success Stories: Multi-device & Shared Data Plans

Sources: Verizon Q1 2013 report, AT&T Q1 2013 report



• Data day pass (e.g. 10MB for 1 day) offered to existing customers who don’t have a data plan • Triggered when they try to access data

(real-time , context aware offer)

• Offer cost control and peace of mind

• Increased data revenue and ARPU, cost reduction, customer satisfaction

Operator Success Story: Data Service Passes

• 98% Reduction in credits for unexpected charges

• 120,000 Reduction in customer care calls (per year)

• 26% Growth in data users

• 17% Growth in data revenue

• 10% Conversion to recurring monthly data plans



• Swisscom – unlimited data with differing speed tiers

• Meet customer needs, link network resources to revenue

• Overall ARPU growth• Initial expected decline

Operator Success Story: Speed Based Tiers

Source: Swisscom investor presentation – Feb 2013



• Traditional IN pre-paid charging and billing to be replaced by real-time charging/OCS

• Accelerating data innovation requires:• Real-time charging/OCS - flexible, convergent• Charging integrated with policy control (PCC)• Centralised offer catalog

• To stimulate loyalty and ARPU: • Real-time, on-device purchase and customer

engagement• Require PCC extended to the device

Summary



About Openet

• Founded 1999

• 960+ employees

• 80 customers worldwide, in 32 countries

• Offices in Ireland (HQ), US, Brazil, & Malaysia

• Customer base includes the world’s largest service providers (15 with >10m subscribers)

• Products and solutions to monitor & control network access, charge in real-time for services, and deliver business insight from network usage data

• Market leader in policy & charging control (PCC) software & solutions

‘we make data make money’

…our transaction management software enables the commercialization of network activity



Thank you

Download Research Report: Charging and Billing for the Digital Economy www.openet.com/chargingresearch

Corine Suscens, Senior Marketing Manager, Openet [email protected]

http://www.openet.com/chargingresearch

mailto:[email protected]

© 2013 TM Forum | 29V2013.3

Q & As

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Today’s speakers

Corine Suscens Senior Marketing Manager Openet

Tony PoulosMarket Strategist, Editor IRM Newsletter & ChannelsTM Forum

© 2013 TM Forum | 31V2013.3

Thank you for taking part

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