Overcoming the barriers to rate-plan innovation

Core communication services, like voice and messaging, have been commoditised. So operators are looking to service charging and rate-plan innovation as one way to differentiate their offerings. Operators have moved from ‘all you can eat’ data plans to tiered services and segmented offers. For example, offering unlimited Facebook browsing for a small, fixed monthly charge enables the operator to monetise data and offer subscribers real value. Dynamic pricing-promotions and hybrid pre/post-paid billing are also of interest.

 

Charging system support

 

However, the implementation of low-cost, rapidly launched and differentiated services is being impeded by inflexible charging systems. Traditional pre-paid Intelligent Network (IN) solutions usually pose the greatest barrier, as their service logic and service charging functionality are so interwoven that any service, or charging, alterations necessitate major development. Conventional post-paid billing solutions, however, are better for innovation. The inherent offline nature of the charging-related processing makes the system simpler and thus easier to alter. Furthermore, the charging architectureis split between real-time Call Data Record (CDR) creation in the service layer, and separate offline back-end CDR processing and billing. This split inthe charging architecture enables some innovations to be implemented in the backend, without complex service redesign.

 

 Naturally, separate pre-paid and post-paid systems provide extra barriers to innovation; including the punitive cost of duplicating the innovation for both. Supporting hybrid charging is also not straightforward with separate systems. It’s unsurprising then that service charging and rate-plan innovation is often linked with converged real-time charging. Modern real-time charging systems belong to one of two categories: those with a split architecture – a separation between service layer charging and backend charging and rating – and those without. Without a split architecture, as with the classic pre-paid IN, significant system redevelopment is typically needed when implementing charging innovation. Split-architecture systems, with charging functions in the service layer and separate Online Charging Systems (OCS), support simple innovation easily. Here, tariffs can be added, and tariff bands, discounts and bundles defined within the OCS with little difficulty, cost or time; and without impacting the service layer as the service layer and OCS charging functions are separate.

 

However, real service differentiation can be difficult, as the service layer must produce charging triggers to interact with the OCS in realtime in response to real-time events during service use. These triggers, and the information they contain, are also bound into the service in the service layer. For example, a promotion offering free calls from home requires the service layer to determine and provide location information to the OCS in real-time. So, as well as impacting the back-end charging/rating functions, service charging and rate-plan innovation also impacts the service layer itself. Any innovation that needs a new trigger, or new information within existing triggers, needs service layer development. Operators must bridge the gulf between new business model conception, pricing and successful execution by implementing rate-plan innovation in the service layer quickly and cheaply in order to become more competitive. An Asia-Pac operator, with over 100 million subscribers, is already using a service layer enabler to ensure innovative service charging models can be launched rapidly and costeffectively.

 

So, the solution for innovation already exists; and operators can innovate quickly, freely and cost effectively to benefit their subscribers, their competitiveness and their margins.

 

 

Mark Windle