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From Utility Billing to Multiservice Charging
©Metering International - Issue II, 2008 - David McNierney
The history of utility billing is not unlike the history of billing systems from other service-oriented industries like cable TV, telecom, home security, mobile phones, ISPs. In each case, vendors built solutions for these verticals that addressed the specific business models and operational processes inherent in each. These systems grew to include additional functions like ordering, scheduling and provisioning, eventually becoming end-to-end back office systems.
Now with smart meters, powerline communications, FTTP projects and green initiatives like time of day charging , the world has become a very different place - one that places a premium on charging flexibility. The result: new challenges for utilities operating outdated and inflexible billing/CIS systems.
Billing/CIS History
Over the past two decades, utility billing systems have evolved into the end-to-end solutions of today. Although they were initially focused on billing, customer care was quickly added to the scope, thanks in no small part to the number of billing inquiries. Ordering was also added, soon followed by scheduling to manage truck rolls, inventory, provisioning and other operational business functions. What began with billing soon became an end-to-end operational system designed to meet the needs of the utility's business model. Vendor strategies often resulted in 'jack of all trades, master of none' solutions that, due to their broad scope, exerted extraordinary control over their customers.
In a recent poll, 42% of respondents indentified 'Time and cost to implement changes' as their primary billing challenge. Providers often feel as if their hands are tied when they try to implement changes, especially changes associated with new services or business models. 'It will cost $1 million and require 12-18 months lead team' is a familiar response when marketing asks for billing changes. Responses like this may have been acceptable in the old world, but are clearly unacceptable ina deregulated, multiservice world.
Like other industries, billing/CIS systems accomodated the traditional utility pricing models. In the cable industry, by contrast, it was a monthly subscriptions for TV-based 'tiers'. As a customer, you could select between the silver, gold and platinum packages and then add-on pay-per-view events.
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