The Last Word in Billing

In the wireless industry, billing issues change and evolve almost as rapidly as billing software and technology. This year's hot topics at the Billing '98 Conference and Exhibition in Atlanta included the usual technology reviews and demonstrations, but a growing interest showed in revenue assurance, convergence, the Internet, and dealing with mergers and acquisitions. Several sessions offered guidance on implementing the most appropriate systems to meet your evolving needs.

Peter Grambs and Patrick Zerbib, principals of the telecommunications practice at Booz-Allen & Hamilton, talked about whether carriers should use mainframe or client-server billing and customer-care systems, and whether a customized or package solution is the best way to go. Grambs said the answer really depends on the carrier. He explained that carriers can be grouped as rich new entrants, poor new entrants or incumbents, and the decision may be based on which category you fall into. Rich new entrants implement both mainframe and client-server systems, and they usually implement a package solution. Poor new entrants primarily choose client-server or PC-based architecture and pick a package solution because they are trying to reach a smaller subscriber base initially. The incumbents frequently select mainframe architecture and sometimes develop an in-house system.

"On the low end, client-server systems are used. On the high end, mainframe systems," Grambs said. "Mainframe is implemented exclusively for rich new entrants or incumbents. Client-server systems are for start-ups."

The strengths of mainframe systems, he said, are capacity, scaleability, performance and the low cost of operations. Weaknesses include a complex software environment and high cost of acquisition. They also are rigid and difficult to enhance. The strengths of an open client-server system are time to market, flexibility in implementing new services and independence from hardware vendors; however, the weaknesses are that high-volume support is difficult to achieve, there are high maintenance costs, and it is a complex environment.

Grambs added that customer-care and billing systems have migrated toward a core set of integrated functionality, allowing integration of best-of-breed, third-party components. When choosing a solution, you should search for a core offering, which includes provisioning, account management, rating, billing, and credit and collections. Then, you should look at a package of best-of-breed solutions for other applications, such as service repair and dispatch, point-of-sale and inventory, sales and marketing, financials, SIM-card management, tariffing, fraud, and real-time rating and billing.

A SINGLE DATA SOURCE Mark Nielsen, Subscriber Computing founder and now Primal Systems chairman, said data warehousing systems have evolved tremendously in recent months. In the past, they were built to reduce manual tasks. Now, they are capable of much more, namely analyzing and evaluating information so you can improve your processes.

"Carriers need to move from mass market to mass customization," Nielsen said. "Instead of sending one message to all your customers, you must move toward market segmentation so you can send out multiple messages. Ideally, you should treat customers differently by sending out a message that seems as if it were meant for one individual person."

He noted that these days, data is coming in from multiple systems, such as customer care and provisioning. You need to take that raw data and transform it into usable business information, he suggested. A single system can draw data from all systems quickly and organize it so you will be able to perform effective analysis.

MERGING & CONVERGING Fran Exley, Price Waterhouse senior manager of telecommunications practice, focused on the effects of the global environment and deregulation on your revenue-management department. Perhaps you have an overseas partner. If so, languages, taxes and regulations as well as cultural, currency and technology challenges may be problems for your company. Exley added that financial conflicts between the parent company and subsidiaries often arise in merger situations or strategic alliances.

"International partnerships receive many different invoices, consisting of thousands of details for network services," he said. "When 50 partners all pass costs to the parent company, the accounting department is overwhelmed."

Because the invoices take a long time to evaluate, carriers are losing millions of dollars annually due to inefficiencies in validation and recharging. Plus, costs are tracked and reported in several different areas, leading to inconsistent reporting, duplicated efforts, mistakes and oversights when network operations, marketing and finance all disagree.

The solution, he said, is to provide all parties with the ability to manage the validation process on an exception basis through a global system and common repository. All partners use the same system to maintain inventory of costs and collect payments and settle disputes. At first, some divisions or subsidiaries of the company may resist, so the parent company should provide incentives to use the new processes and systems.

"Most importantly," he said, "find out what all the partners want, not just what the parent company wants."

VIRTUAL BILLING Billing through the Internet is another hot topic that you may want to investigate. In fact, seven seminars were devoted to this subject alone as more carriers have expressed interest in using the Internet as a vehicle for billing and customer care. Frank Delfer, AT&T consumer markets vice president & chief information officer, said the Internet will be a significant channel for untethered billing, payment and care for customers who want to use it. The technologically advanced customers are the better, faster-growing customers. Combined with customized marketing, the Internet becomes a powerful tool to reach these savvy customers on a regular basis. What's more, you are contacting them at a more convenient time.

"When you make a cold call to a customer, they are not in the mood to think about their service," Delfer said. "But when they are on the Internet paying their bill, they are in the mood."

Mike Flickenger, Ameritech product manager for alternate billing services, said although Ameritech is only in the trial stage of billing and customer care via the Internet, the company hopes to build the Ameritech brand image through its web site. It also plans to improve customer retention and service, meet customer needs, enable analysis and sorting, improve bill system time, and reduce printing and postage costs.