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Bill-shocked in Amsterdam
 
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Billing used to put the bling into telecoms, now it's only responsible for the occasional shock

Posted By TelecomTV One , 10 June 2009 | 2 Comments | (1)
Tags: Billing BSS bill shock

Billing used to be so important for telecoms service providers that it lived in its own domain with direct links to Finance and IT. But how times have changed. Billing has been banished back to the back room again where it's just part of the broader BSS group. What's happened? Tony Poulos asks.

Time was when billing conferences attracted thousands of delegates to prime locations like London, Paris, Rome and Cannes. And it attracted the brightest and the best. It turned out that billing people could really let their hair down and they proved to be great party-animals: they even had their own band made up of musically-inclined billing people (no, that’s not an oxymoron).

In those days, billing systems cost millions of dollars to implement and some billing vendors made their fortunes during the M&A activities just prior to the bursting of the telecoms bubble back in 2001.

But now, most of those specialists have metamorphosed into multi-stream BSS vendors and billing is now part of the broader BSS (Business Support Systems) world. And, with the move to next generation networks, converged networks and all-IP infrastructures, even BSS appears to be merging into a new OSS/BSS grouping that, only a few years back, would have been considered undesirable, if not impossible. It’s now all part of the revenue management process of which customer experience is now king, with billing an integral part.

At this week’s BSS Summit held by IIR in Amsterdam, a much smaller group of BSS devotees than used to be the norm is currently assembled to hear about experiences, trends and new technology that will almost certainly affect the way they will be working in future.

Billing is still critically important and is often, sadly, the only contact an operator makes with the customer. It generates more calls to customer care centres than any other operator activity but it also generates revenues, without which businesses would fail.

But the way we do billing is changing, not radically, but gradually.

Here's the scene:

  • In every emerging market, pre-paid billing dominates but in the developed markets most users are post-paid customers and they expect to see their paper bill every month or quarter as they have had for over fifty years and more.
  •  Even sadder is the fact that the bill is usually the only regular contact a CSP makes with the customer.


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2 comments (Add Yours) - click here to sign in

(1) 11 June 2009 20:41:01 by Francis McInerney

Billing is about to become highly strategic and much more about brand management than imaginable for carriers.

At the Corporate Innovation Project in New York we are looking at new pricing models like Amazon''s Kindle and the German game platform Bigpoint.

Both allow carriers to monetize their backhauls in ways that break out of the subscription/access model, allowing large -- and profitable -- revenue increases from the customer base without growing the base. For companies like Comcast, BT, Verizon and Deutsche Telekom, how to grow in saturated markets is an existential question. And they know it.

Large new sources of backhaul revenue will have to billed in imaginative ways that enhance the brand experience of the customer.

The impact will of success be huge. Carriers today try to restrict the use backhaul either by limiting available bandwidth or charging extortionately for it, or both. Indeed, products like Panasonic''s new HDC-TM10 palm-sized high def camera are unusable, and for most carriers, an unwanted node on their networks.

Until carriers can successfully monetize their backhauls, they will have no incentive to build high bandwidth, symmetric networks capable of handling modern consumer electronics. And no way of managing the sales process for their own services or their customers'' experience of carrier brands.

In addition, the conflict between carriers and the Sonys and Panasonics of this world, already looming a decade ago when the tech crash derailed everyone, delaying the crisis, is now unfolding in full force.

Only a monetized backhaul with the artful billing to support it will allow carriers to realize rates of return high enough to justify the capex needed to build networks robust enough to handle the CE of 2019 and beyond.

At CIP, we believe that Amazon and Bigpoint are the leading edge of new pricing and billing models and we are creating innovative alliances among our CIP Participants to exploit this.

Billing is back!


(2) 11 June 2009 23:02:54 by Tony Poulos

You raise some valid and interesting points but I can tell you that most fixed and mobile operators are more concerned at how they can share form what is being sold and delivered over their networks rather than simply becoming the medium of delivery. Mention ''big fat pipe'' to any communications service provider and they go pale. One of the most effective weapons in their arsenal is their ability to bill almost anything, no matter how small or how complex yet they continue to ignore its potential as a potential profit centre.

The success of Apple''s AppStore model has shaken them but in the world''s biggest markets, most of them emerging, pre-paid is still king and they still hold the key. It depends whether they can get it to fit the lock. Charging content providers 50% to 70% of each sale is NOT the way. Billing will never go away, but I''m not so sure it''s back quite yet, at least not for the operators. TP