Real Time Charging
Encyclopedia
Real-time charging is an extension of call accounting
that enables communications service provider
s (CSPs) to apply customer-specific rules for rating, discounting, promotions and settlements to better personalize the telecom experience. As CSPs begin to roll out advanced networks and services, offering and making money on these services requires the ability to do real-time charging.
Real-time charging came into existence to serve the needs of prepaid mobile phone carriers as they sought to enter market segments where the traditional subscription model was no longer applicable, Pre-paid offers required instant evaluation of both the cost and the ability to pay for a telecommunications service, followed by in-call decrementing of the balance. These real-time attributes began to be demanded for service offers other than pre-paid. For instance, to create a spend limit in a post-paid account the account balance must be continuously monitored to detect when the limit is reached and take the appropriate action e.g suspend calling or send a warning SMS. Real time charging has been in place within the enterprise market for a number of years, most notably in the hospitality industry where transient guest required real time resolution of charges and payments. Enterprise markets are not centered around subscribers but as components of a broader employee or customer relationship or transaction.
While enterprises may have long possessed real time capabilities, CSPs are replacing or augmenting their existing, offline billing systems with real-time systems, that are capable of supporting pre-paid and post-paid services, as well as wired services . In the process, these real-time systems are creating new revenue opportunities for CSPs.
Real-time charging systems are part of the telecom industry trend toward convergence
. For example, CSPs that offer triple play
and quadruple play
packages can use real-time systems to charge for services that span disparate networks and technologies, such as wireline, wireless, circuit-switched and Internet Protocol
(IP).
Transforming subscriber experiences
CSPs are using real-time charging to create customer-centric charging models based on lifestyle, profession, age, interests or other segmentation by creating packages with virtually any mix of video, fixed voice, high-speed Internet, and mobile services to boost usage, loyalty, and market share. Examples of this include:
Real-time charging market
Analysts predict strong sales of real-time charging products over the next several years, with the worldwide market expected to grow from $2.6 billion in 2007 to more than $4.4 billion in 2012.
Top market players include Telcordia, Volubill, Ericsson
, HP, Openet
, Oracle
, Orga Systems
, Nokia Siemens Networks
and Redknee, according to OSS Observer. In the hospitality enterprise marketplace, the top player includes SDD's JAZZ Fusion.
Call accounting
A Call Accounting System is a telecommunications software or hardware application that captures, records, and costs telephone usage events. Internationally call accounting systems may be referred to as call logging systems...
that enables communications service provider
Communications Service Provider
A communications service provider or CSP is a service provider that transports information electronically. The term encompasses public and private companies in the telecom , Internet, cable, satellite, and managed services businesses.The market in which a communication service provider specializes...
s (CSPs) to apply customer-specific rules for rating, discounting, promotions and settlements to better personalize the telecom experience. As CSPs begin to roll out advanced networks and services, offering and making money on these services requires the ability to do real-time charging.
Real-time charging came into existence to serve the needs of prepaid mobile phone carriers as they sought to enter market segments where the traditional subscription model was no longer applicable, Pre-paid offers required instant evaluation of both the cost and the ability to pay for a telecommunications service, followed by in-call decrementing of the balance. These real-time attributes began to be demanded for service offers other than pre-paid. For instance, to create a spend limit in a post-paid account the account balance must be continuously monitored to detect when the limit is reached and take the appropriate action e.g suspend calling or send a warning SMS. Real time charging has been in place within the enterprise market for a number of years, most notably in the hospitality industry where transient guest required real time resolution of charges and payments. Enterprise markets are not centered around subscribers but as components of a broader employee or customer relationship or transaction.
While enterprises may have long possessed real time capabilities, CSPs are replacing or augmenting their existing, offline billing systems with real-time systems, that are capable of supporting pre-paid and post-paid services, as well as wired services . In the process, these real-time systems are creating new revenue opportunities for CSPs.
Real-time charging systems are part of the telecom industry trend toward convergence
Convergence (telecommunications)
Telecommunications convergence, network convergence or simply convergence are broad terms used to describe emerging telecommunications technologies, and network architecture used to migrate multiple communications services into a single network...
. For example, CSPs that offer triple play
Triple play (telecommunications)
In telecommunications, triple play service is a marketing term for the provisioning of two bandwidth-intensive services, high-speed Internet access and television, and a less bandwidth-demanding service, telephone, over a single broadband connection. Triple play focuses on a combined business...
and quadruple play
Quadruple play
In telecommunications, quadruple play is a marketing term combining the triple play service of broadband Internet access, television and telephone with wireless service provisions...
packages can use real-time systems to charge for services that span disparate networks and technologies, such as wireline, wireless, circuit-switched and Internet Protocol
Internet Protocol
The Internet Protocol is the principal communications protocol used for relaying datagrams across an internetwork using the Internet Protocol Suite...
(IP).
Transforming subscriber experiences
CSPs are using real-time charging to create customer-centric charging models based on lifestyle, profession, age, interests or other segmentation by creating packages with virtually any mix of video, fixed voice, high-speed Internet, and mobile services to boost usage, loyalty, and market share. Examples of this include:
- Offering affinity charging plans and promotions based on any group relationships, like businesses, clubs, and families;
- Sweetening plans with volume discounts, cross-product promotions, and bundles — like free movies or music downloads for loyal users of any service;
- Setting easy-to-understand fees for services or content;
- Enabling simultaneous use of services;
- Offering hybrid prepaid/postpaid accounts;
- Charging by subscription, time, usage, or content type; and
- Triggering features, discounts, and plans in real time based on usage.
Real-time charging market
Analysts predict strong sales of real-time charging products over the next several years, with the worldwide market expected to grow from $2.6 billion in 2007 to more than $4.4 billion in 2012.
Top market players include Telcordia, Volubill, Ericsson
Ericsson
Ericsson , one of Sweden's largest companies, is a provider of telecommunication and data communication systems, and related services, covering a range of technologies, including especially mobile networks...
, HP, Openet
Openet
Openet is a multinational company that provides service optimization software to communication and media service providers worldwide, enabling them to control, monetize and increase visibility into the usage of services and network resources...
, Oracle
Oracle Corporation
Oracle Corporation is an American multinational computer technology corporation that specializes in developing and marketing hardware systems and enterprise software products – particularly database management systems...
, Orga Systems
Orga Systems
Orga Systems is a medium sized billing company based in Paderborn, Germany, and more than 20 additional locations worldwide.As one of the pioneer in prepaid billing it provides Billing and Customer Care systems to mobile operators for fifteen years, including launching the world’s first GSM...
, Nokia Siemens Networks
Nokia Siemens Networks
Nokia Siemens Networks is a global data networking and telecommunications equipment company headquartered in Espoo, Finland. It is a joint venture between Nokia of Finland and Siemens of Germany...
and Redknee, according to OSS Observer. In the hospitality enterprise marketplace, the top player includes SDD's JAZZ Fusion.