Event Sources and Tracking ; Mediation Devices ; CDR | Billing Process

Billing Process

Billing systems are composed of computers and software programs that track usage within a network (events) and converts them into a single detailed billing record. Events within a network can come from many sources; a switch, data router, application service provider and they must be converted into a standard format.

Billing and customer care systems may be developed and managed by internal staff or contracted to other companies (outsourced).

Companies that provide complete managed billing and/or customer care services (called turnkey) to other companies are called service bureaus.

Event Sources and Tracking

Billing system events are measures of network usage. Events can be stored in the network device (Data Collector) for transfer at predetermined time intervals, when a specific value has been reached (event trigger) or when the billing system requests the information (called polling).

Some common event sources include central office switches, routers, and application servers. Central office switches are devices that route Source: The Billing Collegecalls from one subscriber to another. They track the time one port is connected to another port. Routers are intelligent switches that forward packets toward their destination based on their routing address (and possibly type of content). Routers can track the amount of data that is routed between two ports over a period of time. Application servers are computers that process information at the request of a customer (called a client), and can track the beginning (launching) and termination of an application.

Mediation Devices

A mediation device receives, processes, and reformats event information in a telecommunications network to a suitable format for one or more billing and customer care systems. This processed information is either continuously or periodically sent to the billing system. Mediation devices are commonly used for billing and customer care systems as these devices can take non-standard proprietary information from switches and other network equipment and reformat them into messages billing systems can understand.

Switches usually report their usage information (e.g., switch connection time) in binary coded decimal (BCD) format and these record formats are often proprietary to the manufacturer of the switch. Each record may be variable length and several events (e.g. switch points) may be recorded in the same system for a single call. There are at least 60 switch manufacturers and each has several models of switches that may result in different billing record formats.

There are other network parts or devices that may be involved with connecting a call or providing value added services (VAS). These devices also can produce cal detail records and these records are in a different format.

Figure 1 shows a mediation system that takes call detail records from several different switches and reformats them into standard call detail records that are sent to the billing system. This diagram shows the mediation device is capable of receiving and decoding proprietary data formats from three different switch manufacturers. The mediation device converts these formats into a standard call detail record (CDR) format that can be used by the billing system.

Figure 1: Mediation System

Call Detail Records (CDRs)

Billing information regarding specific calls are contained in call detail records. CDRs hold the origination and destination address of a call (who), time of day the call was connected and duration of the call (when), the call type and its details (what), the connection location(s) of the call (where), and the cause of event recording (why). When the call detail record holds information other than telephone billing information (e.g., the name of a movie watched), it may be called an event detail record (xDR). xDRs hold billing record information about services that are non-traditional telecommunication services such as an information services that are provided through the Internet.

Figure 2 shows the basic structure of a call detail record. This diagram shows that a call detail record contains a call detail record identification number (unique identifier), who originated the call, the called number, the time the call started and completed. This diagram shows an additional charge for operator assistance and that a call detail record can dynamically grow as multiple events add information to the call event.

Figure 2: Call Detail Record (CDR)
Source: The Billing College

Types of Services & Standard Billing Process | Introduction to Billing

The control of a billing system is usually under the finance department. Billing systems are often viewed as accounts receivable as the billing system assists in the collection (receipt) of money from customers. Billing systems are also is part of accounts payable (for inter-carrier settlements) as customers often use services from other companies such as long distance and call completion through other networks. The network operator is usually financially responsible for services provided to their customers by other networks regardless if the customer pays for the service or not.

Types of Services

There types of services that a customer may use in a network include system access (basic information transfer), information processing (such as email), and content delivery (current traffic information for example). When the communication service involves system access through different networks, the call is normally routed through a toll center and a toll charge may apply. A toll is any message telecommunications charge for services provided beyond a local calling area.

Examples of system access services include plain old telephone service (POTS), integrated services digital network (ISDN), digital subscriber line (DSL), and other data connectivity services that transfer information between points. Information processing services include phone card (Telecard), voice mail, fax store and forward, and other services that involve the processing of information that is passed between two or more points. Content delivery involves linking customers to sources of information content and transferring the content to the end customer. Examples of content delivery include weather advisory services, stock quotes, and the delivery of other sources of information that the customer requests.

Standard Billing Process

The typical billing process involves collecting usage information from network equipment (such as switches), formatting the usage information into records that a billing system can understand, transferring these records to the billing system, assigning charge fees to each record, receiving and recording payments from the customers, and creating invoices.

Figure 1 shows a standard billing process. In this diagram, the customer calls customer care or works with an activation agent to establish a new wireless account. The agent (customer care) enters the customer’s service preferences into the system, checks for credit worthiness, and provides the customer with a phone number so that the customer may make and receive calls through the telephone network. As the customer makes calls, the connections made by the network (such as switches) create records of their activities. These records include the identification of the customer and other relevant information that are passed onto the billing system. The billing system also receives records from other carriers (such as a long distance service provider, or a roaming partner). The billing system now guides and updates these call detail records (CDRs) to their correct customer and rating information. As information about the customer is discovered (e.g. rate plan), the updated billing records are placed in a billing pool so that they may be combined into a single invoice that is sent to the customer. The customer then sends his payment to the telecom service provider. Payments are recorded in the billing system. History files are then updated for the use of customer service representatives (CSRs) and auditing managers.

Figure 1: Standard Billing Process. Source: The Billing College