http://www.tutorialspoint.com/telecom-billing /billing -introduction.htm Copyright tutorialspoint.

com
TELECOM BILLING INTRODUCTION
Sending voice, data, picture, fax, etc., from one point to another using electronic media is termed as
telecommunication and in short it terms as telecom. Examples include Phone, Radio, Television and Internet.
The medium of transmission includes Wire (Copper), Fiber Optics, Ether (wireless), Radio towers, Microwave,
Satellite, etc.
Today, everybody is using phones (Mobile & Land Line) and same time numerous services provided by telecom
operators. To name, following are few international phone companies:
Nokia
Samsung
Panasonic
Blackberry
Motorola
Let me list down few international telecom operators, who are providing satisfactory telecom services to their
customers:
Verizon
Vodafone
Airtel
TATA
Etisalat
Qtel
Let me also list down few basic telecom services being provided by various well known telecom operators:
Voice Call
Fax Service
SMS & MMS
Internet Connection
Data Download and Upload
Video Conferencing
IP based services, i.e., voice over IP or VPN
Telecom operators are charging their customers in various ways, but there are two mainly used parameters to
charge a customer:
Rental Charges: These are the charges taken from the customers on monthly basis against a service
provided. For example, your telephone monthly charges would be $5.00 regardless you use it or not.
Usage Charges: These are the charges taken from the customers based on the service utilization. For
example, you would be charged for all the calls made or data downloaded using your phone.
Apart from monthly rental and usage charges, operators may charge you for service initiation, installation,
service suspension or termination as well.
Telecom Billing is a process of collecting usage, aggregating it, applying required usage and rental charges
and finally generating invoices for the customers. Telecom Billing process also includes receiving and
recording payments from the customers.
Billing Systems:
There could be very complex charging scenarios, which would be difficult to handle manually. There are state-
of-the-art Billing Systems available in software market which handle billing tasks very efficiently and provide lots
of flexibilities to service providers to offer their services with different price structures.
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 part of accounts payable (for inter-carrier settlements) as
customers often use services from other companies such as wireless roaming, long distance, and call completion
through other networks.
Billing systems are high end, reliable and expensive softwares, which provide various functionalities. Here is a
list of most important features but not limited to the following:
Rating & billing: This involves rating the products or services usage and producing monthly bills.
Payment processing: This involves posting of the customer payments to customer's account.
Credit control and collections: This involves chasing the outstanding payments and taking
appropriate actions to get the payments.
Disputes and adjustments: This involves recording any customer disputes against their bills and
creating adjustments to refund the disputed amount in order to settle the disputes.
Pre-pay and post-pay services: This involves supporting both pre-paid and post-paid customer
base.
Multilingual & multiple currencies: Multilingual and multiple currencies support is required if the
business is spread across the globe and have multinational customers or if the government regulations
demand for it.
Inter-carrier settlements: This involves sharing of revenue between carriers that provide services
to each other's customers.
Products & services: This involves providing flexible way to maintain various products and services
and sell them individually or in packages.
Discount applications: This involves defining various discount schemes in order to reduce customer
churn and attract and increase customer base.
Billing Types:
When you drill down billing subject, it becomes more complicated. I would try to cover most of the concepts later
in this tutorial, but let us have a broad view on widely used billing types:
Pre-pay Billing: A billing mechanism where customer pays in advance and after that starts using a
service. Usually, prepaid customers do not receive any invoice and they are charged in real time by the
highly available billing systems called IN (Intelligent Network).
Post-pay Billing: This is the conventional billing, which is coming for many years. Here, customers buy
products and services and use them throughout the month, and by end of the month, invoices are
generated by the service provider and sent those invoices to the customers to make their due payment.
Interconnect Billing: The network operator is usually financially responsible for services provided to
its customers by other networks regardless of whether or not the customer pays for the service.
Interconnect billing is related to inter-carrier or sometime called partner settlements.
Roaming Charging: When a customer goes from one network operator's coverage area to another
operator's coverage area, first operator would pay marginal charges to second operator to provide
services to their customers. Such type of charges are settled through roaming billing. This settlement is
done as per TAP3 protocol, which I will discuss in upcoming chapters.
Convergent Billing: Convergent billing is the integration of all service charges onto a single customer
invoice. Convergent billing means creating a unified view of the customer and all services (Mobile, Fixed,
IP, etc.,) provided to that customer.
Billing System Vendors:
Billing Systems are the backbone of any telecom operator. If operators do not have a strong billing system, then
it would not be possible for them to offer their products and services with attractive promotions and deals and
ultimately they can not stand in today's competitive and dynamic market.
You can find thousands of vendors, who are selling their billing products with a claim of lot of features, but there
are few in the market which are really good and most commonly used. I may not be able to list down all the good
billing systems, but few of them are listed below:
System Website
Convergys IRB http://www.convergys.com
Amdocs Ensemble http://www.amdocs.com
AMS Tapestry http://www.amsinc.com/telecom/
Kenan Arbor http://www.kenan.com/
Saville Systems http://www.savillesys.com/
Single View http://www.intecbilling.com
Portal Infranet http://www.portal.com
Ericsson IN http://www.ericsson.com
Nokia Siemens IN http://www.nokiasiemensnetworks.com