Real Time Billing | Introduction to Billing

Real Time Billing

Real time billing involves the authorizing, gathering, rating, and posting of account information either at the time of service request or within a short time after the call has been initiated (this actually may be several minutes). Real time billing is primarily used for prepaid services such as calling cards or prepaid wireless.

Real time billing involves authenticating, authorization, and accounting. Many real-time billing systems use remote access dial in user server (RADIUS) to limit the access to the system to registered and authorized customers. RADIUS is network protocol that operates on a network server (software program and database) that receives identification information from a potential user of a network service, authenticates the identity of the user, validates the authorization to use the requested service, and creates event information for accounting purposes.

Real time billing may also provide for better customer care and provide advice of charge (AOC) information. AOC provides the ability of a telecommunications system to advise of the actual costs of telephone calls either prior or after the calls are made. For some systems, (such as a mobile phone system) the AOC feature is delivered by short message service.

Figure 1 shows a real time prepaid billing system. This diagram shows that the customer initiates a call to a prepaid switching gateway. The gateway gathers the account information by either prompting the user to enter information or by gathering information from the incoming call (e.g. prepaid wireless telephone number). The gateway sends the account information (dialed digits and account number) to the real time rating system. The real time rating system identifies the correct rate table (e.g. peak time or off peak time) and inquires the account determine the balance of the account. Using the rate information and balance available, the real time rating system determines the maximum available time for the call duration. This information is sent back to the gateway and the gateway completes (connects) the call. During the call progress, the gateway maintains a timer so the caller cannot exceed the maximum amount of time. After the call is complete (either caller hangs up), the gateway sends a message to the real time rating system that contains the actual amount of time that is used. The real time rating system uses the time and rate information to calculate the actual charge for the call. The system then updates the account balance (decreases by the charge for the call).

Figure 1: Real Time Billing

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

Overview | Billing and Customer Care

Billing and customer care systems convert the bits and bytes of digital information within a network into the money that will be received by the service provider. To accomplish this, these systems provide account activation and tracking, service feature selection, selection of billing rates for specific calls, invoice creation, payment entry and management of communication with the customer.

Billing and customer care systems are the link between end users and the telecommunications network equipment. Telecommunications service providers manage networks, setup the networks to allow customers to transfer information (provisioning), and bill end users for their use of the system. Customers who need telecommunication services select carriers by evaluating service and equipment costs, reviewing the reliability of the network, and comparing how specific services (features) match their communication needs. Because most network operations have access to systems with the same technology, The billing and customer care systems are the key methods used to differentiate one service provider from another because most network operations have access to systems with the same technology.

There are many different types of services to be supplied and billed. These include traditional voice, short messaging, fax, data communications, and information services. Billing systems process the usage of network equipment that is used during the call (events) into a single Call Detail Record (CDR). The billing process involves receiving billing records from various networks, determining the billing rates associated with the billing records, calculating the cost for each billing record, aggregating these records periodically to produce invoices, sending invoices to the customer, and recording payments received from the customer.

Customer care systems, sometimes known as provisioning systems, provide customer service representatives (CSRs) with tools to assist and standardizes communication with the customer.

Billing system costs can be a substantial percentage of revenues collected. In addition to the initial acquisition cost of computers and software, operational costs are very high. Of the service provider’s staff, 20%-30% directly or indirectly provide billing and customer care support.

There are many billing standards that have been developed for telecommunications networks. Because the services offered by different types of network operators (e.g. cable television compared to local telephone companies) are beginning to overlap, billing standards are also converging.

Future trends and challenges for billing systems include new types of services to bill for, telephone number portability that complicates account identification numbers, and increased customer self care to reduce the burden (and cost) of billing systems.

Figure 1 shows an overview of a billing and customer care system. This diagram shows the key steps for billing systems. First, the network records events that contain usage information (for example, connection time) that is related to a specific call. Next, these events are combined and reformatted into a single call detail record (CDR). Because these events only contain network usage information, the identity of the user must be matched (guided) to the call detail record and the charging rate for the call must be determined. After the total charge for the call is calculated using the charging rate, the billing record is updated and is sent to a bill pool (list of ready-to-bill call records). Periodically, a bill is produced for the customer and as payments are received, they are recorded (posted) to the customer’s account.

Figure 1: Billing and Customer Care System.
Source: The Billing College

Spatial Division Multiple Access (SDMA) & Third Generation Wireless (3G) | Future Enhancements

Some of the key future enhancements to wireless technology include spatial division multiple access (SDMA) and the introduction of third generation (3G) wireless technologies.

Spatial Division Multiple Access (SDMA)

Spatial division multiple access (SDMA) is a system access technology that allows a single transmitter location to provide multiple communication channels by dividing the radio coverage into focused radio beams that reuse the same frequency. To allow multiple accesses, each mobile radio is assigned to a focused radio beam. These radio beams may dynamically change with the location of the mobile radio. SDMA technology has been successfully used in satellite communications for several years.

Figure 1 shows a SDMA system. This diagram shows a single tower that is serving 3 different users from the same radio tower on the same frequency using independent beams of radio energy.

Figure 1: Spatial Division Multiple Access (SDMA)

Third Generation Wireless (3G)

Third generation wireless (3G) is a term commonly used to describe the third generation of technology used in a specific application or industry. In cellular telecommunications, third generation systems used wideband digital radio technology as compared to 2nd generation narrowband digital radio. For third generation cordless telephones, products used multiple digital radio channels and new registration processes allowed some 3rd generation cordless phones to roam into other public places.

The 3G system is actually the universal mobile telecommunications System (UMTS). The UMTS system offers personal telecommunications services that use the combination of wireless and fixed systems to provide seamless telecommunications services to its users. The UMTS allows bandwidth on-demand transmission capacities of up to 2 Mb/s in some of its radiolocations. It should be compatible with GSM and broadband ISDN systems.

Figure 2 shows a 3rd generation broadband wireless system. This system uses two 5 MHz wide radio channels to provide for simultaneous (duplex) transmission between the end-user and other telecommunication networks. There are different channels used for end- user to the system (called the “uplink”) and from the system to the end-user (called the “downlink”). This diagram shows that 3G networks interconnect with the public switched telephone network and the Internet. While the radio channel is divided into separate codes, different protocols are used on the radio channels to give high priority for voice information and high-integrity to the transmission of data information.

Figure 2: 3rd Generation Wireless

Wireless Data & Broadcast Television | Services

Wireless Data

There are three basic services offered by wireless data systems: circuit switched data, packet switched data and messaging.

Circuit switched data is a bearer service as it only transports the user’s data between points. When sending data through a circuit switched connection, the user regularly pays a standard per-minute charge for the amount of time that the connection is maintained regardless of how much data is sent through the channel.

It usually takes approximately 10 to 20 seconds to establish a circuit switched connection on a wireless network. This is due to the processing of dialed digits through the telephone network and the amount of time the modem requires to establish which communication language will be used (called training time). The user ordinarily pays for this setup time even if they only have a very small amount of information to send (such as an email message). Once a connection is established on a circuit switched connection, data transfer rates generally range from 9600 bps up to 28,800 bps.

Packet switched data is also a bearer type of service as it only transports the users data between points. When sending packets of data through the network, the user normally pays only for the amount of data or number of packets that they send.

Unlike circuit switched data, the connection time for packets is ordinarily under 1 second (some systems may be below 150 msec) and the user does not pay for this setup time. The typical price for packet data transmission ranges from approximately 4 cents to $1 per kilobyte. A one-time activation fee is as a rule required along with a minimum monthly fee. The usage amount is normally applied to the monthly fee.

Several wireless data service providers in the United States now offer service based on application and number of units. This results in different price plans that can vary from $15-25 per month per unit with some systems offering a flat fee for a fixed or unlimited amount data transmission. The trend is to move away from the per packet charge.

Figure 1 shows a typical wireless packet data rate plan. This table shows that there is usually a monthly recurring fee that provides the user with a monthly amount of data. If the customer uses the maximum data allocation, an additional fee per kilobyte or megabye of data is charge.

Figure 1: Wireless Data Cost

Wireless messaging is a teleservice as it processes the user data. Wireless messaging services include store, forward, and Internet connectivity. Typically wireless messaging is combined (bundled) with wireless data service (such as packet data).

Broadcast Television

Broadcast television revenues are primarily obtained from the providing of advertising. Figure 2 shows the recent growth of the broadcast television advertising industry. This diagram shows that total advertising revenue is increasing.

Figure 2: Television Advertising Revenue.
Source: Television Advertising Bureau

Mobile Voice & Paging | Services

Mobile Voice

The most well known application for wireless communications is voice communications. Voice communication can be telephony; wide area (cellular), business location (wireless office) or home cordless (residential) or voice paging, dispatch (fleet coordination) or group voice (audio broadcasting). Service rates for voice applications typically involve an initial connection charge, basic monthly minimum fee, plus an airtime usage charge. When the customer uses service in another system than their home registered system, there may be a daily fee and/or a higher per minute usage fee.

Figure 1 shows that mobile telephone charges include recurring costs and usage costs. Mobile telephone systems also offer advanced features. In many cases, the advanced features are offered for free (e.g., voice mail) as they increase usage costs.

Figure 1: Mobile Telephone Costs

Paging

Paging services include tone paging, numeric paging, alpha (text) paging, and voice paging. Tone paging service notifies a paging customer that a message has been sent via a tone. This tone usually is designated to mean a callback to a single location is requested. The original “beep, beep” tone pagers that started it all have become very popular as entry-level private communications systems, including restaurants (beeping servers when orders are ready) and in other centralized locations where a tone page necessitates a choice in response to only one.

While the popularity of these types of pagers has decreased overall, some retailers continue to offer tone pagers as “loss leaders” allowing the publication of low prices in print ads to attract attention. Still, for dispatch operators or other industries that only need a response to a central office, tone pagers offer a cost-effective solution.

Numeric paging is the sending of paging messages, typically telephone numbers that are displayed on a small paging device. After the message is received, the user calls back the displayed telephone number to talk to the sender.

Figure 2 shows that the typical cost for numeric paging service typically involves signing up for local, regional, or nationwide coverage. Rate plans start with a monthly service charge that allows pages using a local telephone number. Additional charges may be assessed for 800 toll free and 0800 freephone access numbers. Paging carriers usually offer a maximum number of pages per month and pages that additional per-page charges may apply for pages that are sent beyond the pre-defined limit.

Figure 2: Paging Cost

Alpha paging displays numerical and textual information. This can take many forms, from verbatim text messages to weather reports. Messages can be recorded into voice mail where operators type them up and send them out, or callers can dictate messages to live operators directly. Many carriers bundle free news, weather and sports feeds from other sources. While some carriers offer unlimited numeric usage, many charge for additional pages (both numeric and text message) beyond a pre-defined limit. Some carriers charge so much per character while others simply charge by the message.

Voice pagers broadcast messages through a built-in speaker in the paging unit. Message volume settings can usually be set to loud, soft or private, through an earpiece.

Two-way pagers allow fully interactive capabilities, permitting users to respond to pages by sending an original or canned alphanumeric message. Additional hardware must be purchased (or leased). Customers can lease the paging device for about $15 per month or purchase it for around $399.00.

Wireless Local Loop (WLL)

Wireless local loop (WLL) service refers to the distribution of telephone service from the nearest telephone central office to individual customers via a wireless link. In some cases, it is referred to as “the last mile” in a telephone network. This term is a bit misleading, though, because the coverage area of a WLL system may extend many miles from the central office.

Competitive local exchange carriers (CLEC) are competitors to the incumbent local exchange carriers (ILECS) and are likely to use WLL systems to rapidly deploy competing systems. If CLECs do not use wireless systems, they must either pay the existing phone company for access to the local loop (resale) or dig and install their own wire to the local customers. Many countries, that do not have large wired networks such as the United States, are using wireless local loop as their primary phone system.

Figure 1 shows a wireless local loop system. In this diagram, a central office switch is connected via a fiberoptic cable to radio transmitters located in a residential neighborhoods. Each house that desires to have dial tone service from the WLL service provider has a radio receiver mounted outside with a dial tone converter box. The dial tone converter box changes the radio signal into the dial tone that can be used in standard telephone devices such as answering machines and fax machines. It is also possible for the customer to have one or more wireless (cordless) telephones to use in the house and to use around the residential area where the WLL transmitters are located.

Figure 1: Wireless Local Loop

The most basic service offered by wireless local loop (WLL) system is to provide standard dial tone service known as plain old telephone service (POTS). In addition to the basic services, WLL systems typically offer advanced features such as high-speed data, residential area cordless service, and in some cases, video services. To add value to WLL systems, WLL service providers will likely integrate and bundle standard phone service with other services such as cellular, paging, high speed Internet, or cable service.

WLL systems can provide for single or multiple-line units that connect to one or more standard telephones. The telephone interface devices may include battery back up for use during power outages. Most wireless local loop (WLL) systems provide for both voice and data services. The available data rates for WLL systems vary from 9.6 kbps to over several hundred kbps. WLL systems can be provided on cellular and PCS, private mobile radio, unlicensed cordless, and proprietary wideband systems that operate the 3.4 GHz range.