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Convergent Billing IN. Call Control and Enhanced Services. Patrick McGrory CEO. Poland: Idea fuels TP SA results (2004-02-18). 03.08.2004 06:47:00 GMT Poland's second-largest mobile operator, Centertel, aims to grow revenue 30% in 2004.
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Convergent Billing IN Call Control and Enhanced Services Patrick McGrory CEO
Poland: Idea fuels TP SA results (2004-02-18) 03.08.2004 06:47:00 GMTPoland's second-largest mobile operator, Centertel, aims to grow revenue 30% in 2004 Strong growth of pre paid market: 78% of 2Q’04 net adds The Business Convergent Billing| 2 | Commercial In Confidence
Subscriber Acquisition Costs Source: PTK eServGlobal means better network economics Convergent Billing| 3 | Commercial In Confidence
CAPEX Economics Source: TP; IFRS Data Better network economics requires Better Network Intelligence™ Convergent Billing| 4 | Commercial In Confidence
-5 Years -2 Years -1 Year Today Batch Dimensions of Convergent Billing Functionally Tiered Geographically Distributed Massively scalable Distributed Real-time All networks No boundaries Hybrid Value Real-time Mobile focussed Segmented Converged Batch oriented Stapling Time Convergent Billing| 5 | Commercial In Confidence
Billing and Payments Convergent Billing • Business issues… • Increasing demand for real time billing • Collecting the revenue before you deliver the service • Prepaid accounts require real time billing • Postpaid accounts benefit from real time billingenquiries and self-service • Service innovation • Same treatment for Prepaid & Postpaid customers • Prepaid is a payment method, not a customer segment or service! • Multiple payment techniques – customer choice • Voucher sales and redemption • Funds transfer through banking gateways • Mobile Consumer to consumer top-up • Credit cards, loyalty schemes, etc • Common across all service types • Voice, data, and other media/content This requires a convergent services and billing solution Convergent Billing| 6 | Commercial In Confidence
Postpaid Prepaid One Service Platform Carrier Network Mobile Fixed Postpaid Prepaid Packet Level 2 Rating Level 1 Rating Level 1 Rating Level 1 Rating Convergent Mediation One Service Platform One Service Platform Carrier Network Carrier Network One Billing Platform Mobile Fixed Packet One Service Platform Mobile Fixed Packet Carrier Network Mobile Fixed Packet Convergent Billing Approaches Purist Hybrid Distributed Mediation Convergent Billing| 7 | Commercial In Confidence
Analysis Of Approaches Convergent Billing| 8 | Commercial In Confidence
Issues in Our Experience • Organisation • Expertise & experience • Ability to move rapidly – overcoming organisational inertia • Risk management • Velocity vs. Inertia • Communications • Organisational Support • Commitment Convergent Billing| 9 | Commercial In Confidence
Step towards prepaid <-> postpaid convergence Hybrid solution case study PTK Centertel Michał Konrad Nowakowski VAS Manager PTK Centertel September 2004
Agenda • Information about PTK Centertel • General Information about Hybrida (IdeaMIX & Abomanent Limitowany) • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - provisioning. • Competitors on Polish market • Similar solution accross FT / Orange • Summary Convergent Billing| 11 | Commercial In Confidence
Information about PTK Centertel • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture. • Competitors on Polish market • Similar solution accross Orange • Summary • PTK Centertel is the owner of the Idea and POP brands. • PTK Centertel 12 years old company starting form NMT network. Now one of the 3 GSM operators in Poland, (has UMTS license) • 6 200 000 subscribers (3 200 000 prepaid, 3 000 000 postpaid (600 k Hybrid subscribers included) 2nd place in terms of number of subscribers Bank of New York 11,54% France Telecom 34% Others 40,96% TP S.A. 66% France Telecom 47,50% TP S.A. shareholders PTK shareholders Convergent Billing| 12 | Commercial In Confidence
General Information about Hybrida • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture. • Competitors on Polish market • Similar solution accross Orange • Summary • Hybrid is prepaid - postpaid convergence solution. • There are two brands • IdeaMIX (with three monthly fee levels) - mass market • Abonement Limitowany (one monthly fee level) - corporate market • Subscribers pays monthly fee (receives an invoice or payment slips), when uses all of the funds from the fee, can top up theirs accounts with a standard prepaid method (vouchers, ATM, ...) Benefits: • Subscriber signs a post-paid contract for 12 or 24 months • Low risk of fraud (prepaid mode of funds control) • New segments of the market to be conquered: • Parents buying phones for children or grandparents (post-paid price of the handset with prepaid cost control) • Companies buying phones for new and season employees (cost control) Hybrid Solution Prepaid Postpaid Convergent Billing| 13 | Commercial In Confidence
Hybryda numer of subribers • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture. • Competitors on Polish market • Similar solution accross Orange • Summary Total Hybrid IdeaMIX Abonament Limitowany Convergent Billing| 14 | Commercial In Confidence
Hybryda numer of subribers • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture. • Competitors on Polish market • Similar solution accross Orange • Summary IdeaMIX 19,99 IdeaMIX 49,99 IdeaMIX TP Convergent Billing| 15 | Commercial In Confidence
VAS in Hybryda • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture. • Competitors on Polish market • Similar solution accross Orange • Summary Services offered in IdeaMIX & AL: Services, which lowers the cost of voice & SMS’s are: • peak - off peak tariff plans • per second billing • packets of SMS’s (based on the multi balance approach) VAS services offered to hybrid subscribers: • Voice Mail (access to VM for free) • MMS (real time rating using the OSA CHAM / Parley technology) • GPRS (OSA CHAM / Parley technology) Convergent Billing| 16 | Commercial In Confidence
Technical solution - multi balance approach • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture. • Competitors on Polish market • Similar solution accross Orange • Summary The solution is based on the cooperation of post-paid billing system and real time prepaid solution. • Post-paid system deals with production of invoicing (stable invoice level for each MSISDN) and controlling of invoice payments (standard post-paid vindication rules). • Pre-paid system is dedicated for real-time rating. • Pre-paid billing system with multi balance approach is perfect for this kind of offer • one balance is dedicated for money form monthly fees. • other is dedicated for recharges. Convergent Billing| 17 | Commercial In Confidence
Technical solution - high level architecture • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture. • Competitors on Polish market • Similar solution accross Orange • Summary Provisioning & Mediation Systems IN (prepaid) SDA Billing System (postpaid) Other technical systems: HLR, MMSC, VM, ... Billing system responsibility: • taking care about monthly fee collection • vindication rules • level of Hybrid (monthly fee) setting • Loyalty Point program • Invoice / payment slips generation Technical System responsibilities: • online charging for calls, SMSes, roaming, MMS, GPRS others... • multiple accounts per one MSISDN handling • VAS services management (per second billing, F&F ...) • monthly fees for VAS services collection • Selfcare IVR handling SDA - Service Data Architecture Convergent Billing| 18 | Commercial In Confidence
Competitors on Polish market • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture. • Competitors on Polish market • Similar solution accross Orange • Summary EraMIX - almost exact copy of the solution, launch after 9 months MIXPlus - similar name, totaly different functionality Convergent Billing| 19 | Commercial In Confidence
Similar solution accross FT / Orange • Information about PTK Centertel • General Information about Hybrida • Hybryda number of subscribers • VAS in Hybryda • Technical solution - multi balance approach • Technical solution - high level architecture • Competitors on Polish market • Similar solution accross Orange • Summary There are three hybrid kind solutions across FT / Orange group: • Orange France - Mon Compte • Orange Dominican Orange Flex • PTK Centertel - IdeaMIX & Abonement Limitowany Convergent Billing| 20 | Commercial In Confidence
Summary • Low Investment Costs - reuse of the existing infrastructure • Marketing advantage - new attractive offer • Step towards convergent solution Convergent Billing| 21 | Commercial In Confidence
Pre & post paid in a single manageable entity SingleNetwork & OSSTechnical DeliveryOrganisation Billing All call query for pre &post paid allows central,ubiquitous service delivery Subscriber servicecontrol data ServiceControl Network Elements Vendors Billing VendorPrimes NetworkDeal Solution Concept - Convergent Billing Marketing Users MajorOrganizationalChange How we deploy networks is changing – it’s services driven Convergent Billing| 22 | Commercial In Confidence
Intelligence Architecture External Systems Layer Merchants Enterprises Content Providers Internet Services Banks Customer Intelligence Layer Billing Order Fault Customer Care Recharge Service Intelligence Layer USMS UAS/UMS Voice Data Messaging Network Layer MSC HLR SMSC VM BSC Convergent Billing| 23 | Commercial In Confidence
Business Problem Statement • Increase ARPU • Many operators worldwide are considering convergent billing projects • Customers want to equalise pre and post paid offerings so subscribers can burn balance faster • These projects are focussed on bringing new services to market rapidly – increasing service velocity • Reduce Cost • Post-paid services are currently provided using existing switches and one of several billing systems along with a variety of other platforms (SMSC, SGSN, etc…) • Prepaid services are currently provided using a legacy service node/IN platforms • VPN and other services may be provided using a different legacy IN platform • These platforms have sub optimal economics from both a network and capital expenditure effectiveness perspective • Expand markets • Some operators have invested in a 3G licenses to expand addressable markets • Solutions provided should be reusable in the 3G network Convergent Billing| 24 | Commercial In Confidence
Shareholder Value Increase Value Of Equity Improve ARPU Reduce OPEX Costs Increase Return On Invested Capital • Improve flexibility in delivering new rate plans and services to the market for Mobile voice, SMS, MMS and data services • Improve flexibility in delivering new services to the market • Equalise pre and post paid • Rationalise Prepaid service delivery environment • Rationalise VPN service delivery platform • Rationalise the number of billing systems • Reduce capital intensity of network service delivery platforms • Reduce capital spend by using more capital effective providers • Focus the deployment of capital Convergent Billing| 25 | Commercial In Confidence
Customer Problems – Marketing & Service Delivery • Large inflexible incumbent vendors • Services and rate plans that are not that compelling • Channel loyalty • Customer loyalty • Customer anonymity for prepaid • High cost to serve which was largely fixed • Reducing ARPU – particularly as the base scaled • Time to market too long – 9 months for a new service Convergent Billing| 26 | Commercial In Confidence
Convergent Prepaid/Postpaid IN • Innovative Services and Rating • Converged Pre / Post Paid Call control • Real Time Billing Interface – for all services (Voice, GPRS, MMS, C2C top-up) • Family /Corporate pre & postpaid • Technological Superiority • Flexible Signalling Protocols – SS7 or Sigtran • Ability to Chain Services (UAMS) • Multiple switch / protocol interface – CS-1/2, MAP, CAMEL, ISUP etc. • Time to Market/Revenue • GUI based Service Creation Environment (Call Plan Editor) • Common Service across Network Types – Wire line, Wireless and Packet • Converged Voice and Data service control • Simplicity • eServGlobal solves more problems… Choice of proven strategies for real time billing Convergent Billing| 27 | Commercial In Confidence
Summary • Evolve your organization so there is a single accountability across the network and OSS. • Get expertise from people that have done this. • Reduce risk by integrating components rapidly. • Give yourself and your vendors a 6 month deadline. • Blend skill sets by getting the right vendors together and transferring knowledge to and from your team. • Have a communications plan. Communicate with your subscribers and staff – let them know about the benefits. • Get support from the highest levels in the organisation and commit. Convergent Billing| 28 | Commercial In Confidence
XMS VPN End to End Value Proposition Finance Data Migration Core Network Marketing Voice Convergent Billing| 29 | Commercial In Confidence