Competing in Real Time

In the wireless industry, true real-time message processing and billing has lagged other industries by at least a decade. Most wireless operations centers were housing racks of tapes when they should have been using real-time data feeds. Not long ago, real-time data feeds were the exception -- not the rule.

Finally, carriers have started deploying this relatively old technology. The reason is increased competition. New wireless providers are recruiting high-volume users and threatening the cozy duopoly of cellular. Smart operators know that future winners will have a marketing strategy that permits pro-active pricing to respond to multiple user segments. They will increase their subscriber base by extending service to a formerly unwelcome client, the bad credit risk. This largely untapped market is huge because until recently, the industry relied on pricing incentives, such as free handsets, to grab market share. These plans have been successful but have required stringent credit policies to manage bad debt. Why hasn't the industry had special plans with these folks in mind? Most data-processing systems process data only once a month. By that time a bad-debt account becomes costly. This constraint precludes the use of prepaid, credit limited and other innovative marketing plans for this customer segment.

But the problem is being solved, and now there are several ways for you to introduce this new capability into your product mix.

In the Handset One solution is to let the handset monitor usage. In this scenario, the phone has a computer chip that measures usage against a preset rate plan that is input into the phone with a smart card. The smart card has a beginning balance and as the subscriber uses airtime, the balance is modified according to the preset rate plan. When the balance in the account is depleted, the phone is shut off. At this point, the subscriber must insert a new smart card into the phone before service will continue.

This approach would not require changes to your network infrastructure or billing system, and it allows roaming. But because the phone measures only minutes of use, it cannot distinguish between roaming minutes and home minutes. As a result, there is virtually no rate-plan flexibility beyond the preset flat rate for all minutes of use. Another potential drawback is that it requires additional inventory management for the specially modified handsets.

Let the Billing System Do It Real-time CDR processing provides some indirect benefits such as credit and fraud monitoring as well as up-to-the-minute monitoring of customer usage. The main drawback to this methodology is that unless the billing system has a data link to the clearinghouse, roaming calls cannot be processed.

In the Network There are two variations to the network solution. One requires an SS7 network, and the other requires a computer-based device that is connected to the switch.

With the SS7 network solution, a call isn't routed until a service control point (SCP) database has been queried regarding the account status. The carrier defines the preset usage criterion in the database, much like the process used with the handset technology. If the SCP verifies that the caller's account has a sufficient balance, the call is routed over the network. However, the call duration continues to be monitored and will be terminated automatically if the account's total airtime duration exceeds the preset parameters.

If the pre-set number of minutes is reached before a call is routed, the subscriber call is transferred to customer service for action. Although rating flexibility is limited under this alternative, roaming calls are permitted as long as the subscriber is routed within an SS7 network.

The switch-based solution is similar, except that the actual call (identification is made with predefined line ranges that are designated as prepaid numbers) is routed to an adjunct switch to determine the account status. This process occurs much like an SCP database dip and is subject to the same rating limitations. Also, additional trunking and ports can be costly. An advantage for both network-related solutions is that they provide for pre-call monitoring, which prevents subscribers from exceeding their limits.

Meeting Needs Regardless of how it is deployed, real-time functionality opens significant new markets. Service can be suspended automatically when credit limits are reached. It also will prove a boom to the phone- rental business by introducing immediate payment methods while simultaneously lowering the cost of usage.

Ultimately, the requirement for real-time functionality is irrefutable, but the method that you choose to deploy depends on your unique needs and capabilities. Keep all of these in mind as you evaluate the pros and cons of each real-time billing method available.