Convergent Billing: Migration Paths

Put together three wireless professionals and they could argue for hours over the relative importance of converging multiple services onto a single bill. Regardless of the arguments against convergence, most service providers will have to offer some level of convergence to remain competitive. Given that assumption, there are several approaches to migrating to a system or set of systems that support convergence, each with its own merits and drawbacks. The challenge for your information technology (IT) executive is to determine which approach works best within your company's framework.

BCC ALTERING SYSTEMSThe first alternative is to bill a suite of telecommunications services on a single convergent platform for billing and customer care (BCC). This alternative is by far the easiest to maintain and operate on an ongoing basis, but it can be difficult to implement. A truly convergent system is complex. It has a number of rating engines for the multiple services it supports, or it has one complex rating engine that rates in user-defined units. The system is likely comprised of multiple service-activation and maintenance screens, each screen supporting the information unique to each service. Although the code behind the system is complex, CSRs find it simple to operate as they work with one system to resolve questions from even the most complicated customer.

This alternative works best for a start-up operation because it doesn't have to convert an existing subscriber base or retrain employees. An established company with an existing subscriber base and one or more BCC systems must execute a detailed conversion project and work carefully to ensure it modifies the new system to include all functionality its existing system supports. If not, users will rebel, making the project a failure. This approach also is viable for a company whose existing system is based on outdated technology. The benefits of moving to more modern technology, which include scaleability, ease of maintenance, enhancement and interoperability with other systems, will outweigh the cost of a painful conversion and implementation project.

ALTERING EXISTING SYSTEMSThe second alternative is to alter an existing system, which supports one service, to add BCC for multiple services. Although this approach only works in a few environments, it can be the optimal solution. The primary benefit is that this alternative greatly reduces the impact on existing IT and customer-care staff. CSRs only need to learn new functions within their existing system, rather than get used to an entirely new system. Operations staff may have a few more processes to maintain, rather than learning a completely new set of procedures. Development and maintenance staff can capitalize on their current expertise to develop new functionality, rather than learn a new technology.

This approach only works for a company that has tight control over its BCC environment. A company with an "in-house" BCC system or a company with a great relationship with its existing billing vendor could implement convergence using this approach. Even when this approach is possible, it is not risk-free. Developing functionality to support a new service in a billing system is a large-scale project, and the stories about companies spending tens of millions of dollars on uncompleted billing-system projects are true.

CONSOLIDATING SYSTEMSThe third alternative is to write or purchase a system that consolidates billing information from multiple sources. Several systems are available that take detailed billing information (including call detail) frommultiple systems and consolidate it for the customer. For this solution, you add code to each of the existing billing engines to produce billing detail in a specified format that feeds into the consolidating system. The consolidating system takes the multiple inputs, calculates one receivable and generates a convergent invoice for each customer. Some of these systems allow you to offer the invoice, as well as customer self-service, over the Internet.

The most significant advantage of such a solution is that you don't have to replace any system. That means no conversion project, no retraining CSRs or IT personnel and a minimal impact on system operations. The other advantage is that this solution is simpler to implement than a new billing system or developing convergence in an existing system.

There are disadvantages to this option. Unless you send all invoicing through the consolidator engine, implementing a consolidator creates another place where accounts receivables are stored. It also creates the need for another lock box and/or process for posting payments manually. This implementation only works if there is a unique key across all accounts on all upstream billing systems for a customer. Therefore, either you have to change the account numbers, or you must create a field to store the unique key. Operationally, it can be cumbersome to maintain this unique key across all of a customer's accounts in all existing billing systems.

CHOOSING YOUR SYSTEMThere is no easy way to implement convergence. The differences in features from one service to another dictate technological differences, which present a challenge for any system. If you are faced with implementing a convergent solution in your company, prepare for a lengthy project with many challenges. Appoint a project director with heavy BCC experience in at least one telecommunications service, preferably more.

Weigh the above alternatives. If you are a start-up, plan to select a new system with convergent functionality. Think about hiring a reputable consulting firm to create a detailed requirement list. Have your project director work closely with this firm to review the available systems, and make sure the system you select and the company behind it match your needs and your corporate culture. In this industry, you don't select a billing vendor; you marry a BCC partner.

If you elect to build your own convergent system, start with a limited development plan. If you try to tackle all the functionality you want for the next five years, you will fail. Replace your key support-team members with more junior developers, and put your senior developers on this project. Draw a "shoestring" between current functionality and the minimum functionality required to mail a convergent bill, and complete the development as quickly as possible. Use this limited functionality on a trial basis with a small portion of your customer base or with a number of employees. This method will help prioritize the remaining work and identify functionality you may not have considered.

If you elect to implement a downstream consolidation engine, focus on reducing the above impacts on your operation. Select a vendor that understands these impacts and can help minimize them. Implement the solution first for a limited number of customers or a set of employees. Listen carefully to the concerns of people involved in the trial. They will help you identify what it will take to make the solution work on a larger scale.

Whichever approach you select, prepare a detailed project plan and involve a manager from all functional areas of your company in this preparation. This project will impact every department, so every department must have some responsibility for its development. Finally, plan internally for the project to take 20% to 50% longer than you originally estimated and drive hard to meet every deadline. True convergence still is in the fledgling stages, and you will face unanticipated issues at every step in the process. Plan for these contingencies and have alternative strategies on hand, and you just may be successful.