How can you get future business value from your Legacy Prepaid System?

1. How can you get future business value from your Legacy Prepaid System? Prepaid Mobile 27th - 30th September 2004 Budapest David Collins, EMEA Business Development Manger LogicaCMG Mobile Payments David.A.Collins@LogicaCMG.com

2. Presentation Content • Ask the question “How can you get future business value from your Legacy Prepaid System?” • Ask the question “Where best should you invest?” • Show how to maximise Prepaid services functionality, flexibility and cost-effectiveness through appropriate investment in your Prepaid Systems

3. What will your Prepaid System need to deliver? • Loyalty programmes, revenue assurance, cross service bundles/promotions, real-time bonuses, recharge options, new undefined, Hybrid accounts, greater rating flexibility, charging intelligence, customer care, subscriber convergence, …… • Lots of great ideas and examples from today but can your Prepaid system deliver these? • Furthermore, if you have a strategic objective to converge prepaid and post-paid subscribers into a single environment how can you ensure important characteristics will be retained?

4. Continued Prepaid Investment • Can you say with confidence your Prepaid system is able to meet all marketing requirements today and in the foreseeable future? • New ideas will appear that we are not aware of today. Vendors need to exploit these as one way to stay in business. E.g. PoC/PTT • Reality, unlikely anyone can completely predict where the mobile market will take Prepaid Services • Continued investment in your new or existing system is a likely requirement …..but how best is the investment targeted?

5. Offer best value for money Offer best services for your market Offer best customer experience Make your customers feel wanted Reduce running costs Improve usability of services Offer new services to sustain competitive edge in your market Improve knowledge Reduce churn Business Goal Driven Investment Prepaid Systems play an active role in all of these

6. How best should you invest? • Every operator differs… • Most operators have been evolving their Prepaid systems for some time…. • “Rip and replacement” is deemed less preferrable by many…. • Vendors starting to offer standard interfaces. • The continuance of an evolutionary approach can make better business sense

7. Case study – Evolutionary Approach • Operator objectives • Provide new services to prepaid customers • Adopt a staged migration to a real-time capable charging architecture • Provide a controlled migration path to converged services • “Open-up” the Prepaid System to offer greater vendor choice

8. First, a typical Prepaid Service Prepaid Service 1 - Data/Content Service 2 - Payments Service Rating, Charging, Balance Management, Loyalty Applications Call Flow Call/Service Control IVR Network Interface Subs 3 - Voice Service Voice/Data Network

9. 1 – Evolving the Data/Content Service • Migration to a real-time (pre-delivery) charging and control all Data and Content services, particularly high value • Plug the gaps (e.g. VAS Roaming) • Guarentee Revenue Assurance • New capabilities (e.g. support notification of charge) • Adopt international standards (e.g. OSA/Parlay and IETF DIAMETER) • Support converged on-line or off-line charging of all services dependant upon service, subscriber type or balance level.

10. 1 – Evolving the Data/Content Service Network Service Control Billing Billing Systems Prepaid MSC SMSC MMSC Real-time Data Rating & Charging Gateway GSN Content Server

11. ARPU Boost Offer all services to all types of customers Accurate charging and refunding for all services OPEX Savings Eliminate “hot-billing” revenue leakage/fraud Rationalise network and service layer systems Reduce volume of call centre calls CAPEX Savings Supports evolution of legacy systems Evolution path to support new network elements and more open architecture 1 – Evolving the Data/Content Service

12. 2 – Evolving the Payments Service • 2a – Loyalty & Promotions • 2b – Rating & Charging • 2c – Balance Management

13. 2a – Evolving Loyalty & Promotions • Much of what has been heard earlier today • Basic promotions and notifications • Periodic awards • Recharge rewards • Profiled Groups

14. 2a – Evolving Loyalty & Promotions Network Service Control Billing Billing Systems Prepaid MSC SMSC Loyalty Server MMSC Real-time Data Rating & Charging Gateway GSN Content Server

15. 2b – Evolving Rating & Charging • Customer selectable Tariff Plans • Consolidation of Prepaid & Post-paid rating • Off-board, Prepaid hosted, post-paid hosted typically dependant upon customer base profile • Convergence through real-time rating router • Real-time decision whether to process later

16. 2c – Evolving Balance Management • Post pay script for family accounts “monthly top-up” from Father to Son then Pay as you Go • Credit-limited postpay, Group Accounts (e.g. bundled SMS • Concurrency across services • Need to move accounts off the IN • Sophisticated sub account usage • Service allowance • Visa account

17. 2c – Evolving Voice Services • Existing monolithic systems limit service flexibility and operator choice • Move away from proprietory voice service logic (Call-flow) to open systems based on Parlay/JAIN • Introduction existing “off the shelf” voice based services • E.g. IVR service • Also, new applications such as Conferencing solutions

18. Resultant Payments System Network Service Control Charging Control Billing Intelligent Charging External Billing System Voice SCP MSC Loyalty Server (optional) Rating & charging policy engine SMSC Pre-paid balance management MMSC Data SCP Sub-accounts for bundles and/or main accounts (optional) GSN Rating Engine Rating Engine (optional) Content Server

19. Summary • Unlikely we can completely predict where the mobile market will take Prepaid Systems • Opening up the Prepaid Systems through standards is key • Maximise vendor choice – best of breed, break the “lock-in” • Introducing competition and drive down costs • Unlock network potential • No need to take the risk of replacement • LogicaCMG is committed to supporting this approach.

20. Thankyou!