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M
ac Taylor, CEO of The Moriana Group, has over fifteen years experience in the telecom industry. His main focus today is on strategic planning and the impact of converged IT/Telecom technology and services on the telecom industry. He has a wide network of contacts with key personnel working in carriers, service providers, system integrators, vendors, ISVs and VCs.  

mac.taylor@morianagroup.com

 

 

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IMS Demands an Equally Powerful Online Charging Solution
By Mac Taylor, December 2006

Single platform

In an IMS environment, the lines are blurred between prepaid and postpaid interaction requirements. All users will require real time information such as advice of charge while operators will require real time confirmation of charge authorization.

 

Operators generally have both a prepaid and postpaid charging system today, while many operators may have several charging systems for different service platforms. By decoupling charging from and at the same time harmonizing charging with the IMS integrated services framework, operators can collapse their charging into a single platform providing key charging and interaction functions for all services.

 

This significantly reduces operational costs. Although a move to a consolidated new generation charging architecture is a large under taking, if left unaddressed, operators will be hard pressed to adapt legacy solutions to the wide range of new service enablers and complex services expected with IMS.

 

Deploying new services

The capability to deploy new services in an IMS environment is far greater than in traditional voice networks. Many such services will have a direct dependence on the capabilities of the online charging system. This dependence is not only in regard to rating but also in regard to service interaction and user interaction. State-of-the-art, online charging systems will facilitate operators quickly deploying and charging for the new IMS market opportunities.

 

Migrating to online charging

Online charging is a complex problem. Operators are loath to change from existing online charging systems, since such a migration has potentially a large negative revenue impact if the migration is not successful. Most operators are waiting for their existing suppliers to evolve their platforms to meet new marketing requirements. If operators choose not to use a new online charging supplier they generally have two options – to await the delivery of committed roadmaps from either their current prepaid supplier or their current post paid supplier.

 

Vendor strategies

Most traditional telecommunication equipment suppliers are trying to evolve their existing IN prepaid systems to handle integrated prepaid and postpaid/voice and data requirements. This is a difficult challenge and a difficult sale primarily because the existing “post paid billers” have their systems already integrated into the very important functions of CRM, billing, service planning, etc…

These “IT Billing Companies” are all generally attempting to evolve their batch based rating systems to real-time platforms. They are generally doing this by partnering with SCP front end products that provide the real-time network connectivity and user interaction. In this case, part of the online charging function (account management rating, policies) from the IT billing companies interacts with the SCP in a pseudo real time basis.

 

The benefit of such an approach is that very few changes are required to the overall OSS installed. Many operators believe that the jury is still out on whether these platforms are able to scale in a real time environment and whether they can provide adequate availability or reliability.

 

The next two to four years will provide insight into which vendor group (TEM prepaid or IT billing companies) dominates the online charging domain. The easy choice for operators would be to wait it out and see which group is more successful before making its own selection. Such a delay could be a big risk, leaving operators with inadequate tools to roll out new services and charge for them during a time that promises, if nothing else, to be even more competitive from a services standpoint and even more demanding from a financial performance perspective.

 


Highdeal Point of View

In an unpredictable market in which fads and crazes for applications can storm the market and last just a few weeks, it is pointless for service providers to have a fully functioning IMS architecture for fast service introduction, if they can not just as easily price and package for them. New IMS services will require a level of flexibility, performance and prepaid/postpaid convergence that existing billing systems simply cannot address. There is therefore an architectural shift from the traditional, batch oriented OSS/BSS systems to an emerging online charging system, with the emphasis on pricing, rating, balance management and charging policy logic, all operating in real-time and plugged into back-end systems for CRM and ERP. Online charging solutions not only deliver service convergence for multiservice offerings, but also payment convergence for offering prepaid, postpaid and hybrid accounts.

Mediation, prepaid IN, customer care and billing vendors are now all competing in this new market for online charging. When selecting a vendor, new greenfield operators may be at an advantage compared to incumbents, as they can invest in online charging systems from day one without the constraint of having to offset the CAPEX costs of legacy OSS/BSS systems or be compelled to look to their existing vendors to migrate their systems. Whichever the service provider, the faster they implement an online charging system, the faster they can reap the benefits of increased service differentiation, faster service delivery and a future proof architecture securing any new multiservice offerings in the future.

Learn more about the Highdeal solution for next generation service pricing, rating...

 

 

 
         
 
 
 

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