european 3g mobile forum 416965

7/31/2019 European 3g Mobile Forum 416965

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Pre-paid or post-paid:Challenges of Content Deliveryin a prepaid Billing Environment

Alain Lefebvre


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VoluBill Company Confidential 1

Agenda

Understanding the commercial challenges of implementing a value basedbilling strategy

Identifying how pricing can be used as a competitive positioning differentiatorand customer loyalty tool

Clarifying the need for an integrated view of service packaging: dialogmanagement, access control, subscription management and pricing all impactthe service take-up and overall profitability of a UMTS deployment

Getting to grips with the service implementation challenges:- addressing the different requirements of pre & post-paid models- integrating with legacy billing systems- delivering the billing support for multiple segments (IP, http, wap, MMS...)

Understanding the practical advantages of proxy based architecture andleveraging proven SCP architecture in an IP-based UMTS network


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Commercial challenges of implementing avalue based billing strategy


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Value based charging : The Supermarketanalogy

We go to the supermarketbecause we can find all the goodswe need.

Supermarket offers a choice ofgoods :

Strong brands at a premiumprice

white labels under thesupermarket brand, usually atan entry level price.

We pay only for the goods wepick, not for being in the shop

We pay each good based on itsvalue, not based on its weight

Young population will select aservice provider based on the cool stuff i.e content available

Mobile Operator should offer achoice of content :

Strong brand (i.e MTV in theUK)

Operators brandedcontent(i.e My Orange,Vodafone Live)

Pay for the content, not for thetraffic; no double charging

Value based pricing, no volumebased charging


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Identifying how pricing can be used as a competitivepositioning differentiator


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Charging & content challenges

Ensure Content is sufficiently attractive to generate traffic :

Standard content (logos, ringtones) to assure common level playing fieldwith competition

Exclusive content (games, online sport results) to create contentdifferentiation

Distribution agreement with strong content brands / content aggregratorsbrands (Operator acting as the billing clearing house)

Make pricing model attractive :

Charge based on delivery : ensure customer satisfaction (and eliminatesfraud)

Zero bearer charging on Operator portal

Pay per use & subscriptions optionsService packages

Consistent pricing to avoid cannibalization (i.e SMS, MMS, email)


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An example of Pricing Strategy

P20.00P 5.00Colored

Wallpaper

N/AP40.00International

Video MMS

N/AP15.00Video MMS

N/AP20.00International

MMS

N/AP 3.00*MMS

Rate Per

Download

Rate Per

SendingGlobe Services

CONSOLIDATED RATE TABLE

P0.10/kb or about

P20/min

Streaming Services

(postpaid only)

P0.25/kbInternet Browsing (postpaid

only)

P0.15/kbWAP Browsing

P25.00Message True Tones

P1.00/sendGlobe XTMP5.00Traffic Cam

P20.00Colored Icons

P30.00-

regular/P50.00-

premium

Handygames

P 20.00Polytones

Rate Per DownloadGlobe Services


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Clarifying the need for an integrated view of servicepackaging:


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Establish a dialog with your subscriber

Advice of Charge

In a pre-paid environment notify subscriber of low balance orinsufficient credit, redirect subscriber to top-up site.

Notify subscriber of special promotions

Upselling : suggest a new price plan to a subscriber (movingfrom pay per use to monthly subscription)


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Dialog allows the operator to notify the customer of the qualityand integrity of the user interaction

With D2CP, you can reservecredit at the start of atransaction, then verify thatthe users requested

transaction completedsuccessfully before debitingthe account.

integrityintegrityintegrityintegrity

You requested todownload ABBA-Mamma Mia for0.50, Proceed?

Yes No

Download wassuccessful. Youraccount has beencharged 0.50.

Continue


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Service packaging & customer segmentation

The right package to the right customer profile

Allow flexibility to customers to update their subscribed servicepackage

Try before buy , try before subscribe

Match competition before differentiating


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An example of Service Packaging

TEXT POEA for job opportunities, job validation, recruitment agencyinformation and POEA customer care inquiries. (Just text POEA HELP to 2385)

WORLD TIME for the exact time in other countries(Just text TIME (City) to 2333) Ex. TIME New York

WORLD CURRENCY for today's currency exchange rates(Just text CTC Forex to 2333) Ex. CTC FOREX EUR

NAIA SCHEDULES for arrival and departureflight schedules (Just text FLIGHT to 2333)

INSTANT MESSENGERallows your loved ones abroad to send messagesto your Globe Handyphone for FREE. (Just text IM to 2371 or download Globe's Instant Messenger frommyGlobe Web site)

INTERNATIONAL TEXT MESSAGING - send text messages for only 10pesos to countries with GSM and CDMA phonesJust text your message to (+) (country code) (network access code) (mobile number)INTERNATIONAL DIRECT DIAL (IDD) for only 40 cents (flat rate) to anycountry, anytime. [ (+) (country code) (area code) (phone number)]

GLOBE AUTOLOAD VIA BPI EXPRESS ONLINE - when abroad, you can sendGlobe prepaid credits to your loved ones. 250, 500, 1000 denominations available(Just log on to www.BPIExpressOnline.com for more details)

By the time you returnYour kid will be 2 years old

Isnt it great Globe lets you

Connect and provideFor your family evenWhen you are abroad


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MyGlobe services


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Example of push services

Depending on the type of content that they access, subscribers will be charged:For information : P2.00 / P2.50For monophonic ringtones, logos and text cards: P15.00For polyphonic ringtones, wallpaper: P20.00For MMS Video Clip: P30.00

Starting June 29, Globe subscribers will be able to regularlyreceive information and content from myGlobe, depending onwhat their interests are, by simply opting in for the service that

they want!This means Globe subscribers will no longer need to memorizeany keywords or make frequent requests to get information they simply have to specify once what info they wish toreceive and the info or content will be sent to them,either via SMS or WAP Push, on a regular basis.


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Innovative services

MYGLOBE TRACKER

Track the location of your friends, loved ones and favorite celebritythrough your mobile phones with myGlobe tracker : P5.00 to P10.00Per location request

VIDEO MESSAGES

Send Video Messages for only P5.00 (introductory price)


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service implementation challenges:


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Implementation challenges

Solution must be real-time in order to support pre-paid customers with zero-leakage and postpaid customers

Solution must support all Data services (i.e GPRS , WAP, IP , http, MMS, email)as cannibalization across services become a real risk

Solution must offer sufficient flexibility to allow charging at the granularity levelrequired by Mobile Operators marketing department.

Solution must support charging for on and off portal content

Solution must ensure that charging only occurs when the service has been

effectively delivered

Solution must support dialog management capabilities


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Challenge 1: Bill all chargeable events

Identify real content

Control access and service delivery

Charge delivery to the handset


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Challenge 2: Eliminate revenue leakage

No revenue leakage


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Challenge 3: Maximise individual customer revenues

Initiate dialogue with the customer


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Understanding the practical advantages of proxy basedarchitecture


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Traditional Mediation Solutions Alternative

Leveraging Traditional voice based charging and billing solutions

Billing

Rating

Mediation

Usage reporting

InternetNetwork

Tradition solutions offer billing and

charging solutions for:

IP Pre-PaidIP Post-PaidSMS

NoLimited

No granularity IPdata (Kbmeasurementonly)

On-portal onlyNo Dialog

YesYes

DataVoice


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In Flow Data Control Point Solution alternative

Billing

Pre-paid

Usage reporting,

Access control,

Dialog mgt

RatingIN/Balance

MgrD2CP

Post-paid

Network Internet

Implementing an in-flow Data Control Point

D2CP

Data Control Point offers billingand charging solutions for:

Other advantages include:

Applicable to multi-vendornetwork equipment, by design

Unified pre- and post-paid billingand charging

Digital content delivery control

SMS

Yes

High

granularity IPdata (inc

MMS)

On and off-portal

Dialog mgt

Yes

High granularity IP

data (inc MMS)On and off-portal

Dialog mgt

YesNo

IP Pre-PaidIP Post-Paid

DataVoice

Mediation


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Subsc.

SCDK

Internet

Content ServiceProviders

D2CP

UDRs

RADIUSServer

Authentication

Access

Network

GGSN

WAPGW

BAR

Subscription

DataBase

An in-flow Gi based solution complements existing infrastructure

Existing Business Systems

SettlementBilling Warehousing

VoucherFraud Black list

RADIUSAuthentication

Server

RADIUSAccounting

Server

Balance Mgt.Rating Authorisation

Customer Mgt, Rating, Reservation Credit Balance Mgt.

Portal


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BSS

Third-partyservices

Operator-managedservices

Real timeAccess Control

On demandGranularity

Delivery

control

DialogueManagement

On-Off PortalCharging

Multi bearerGPRS/SMS

In flow Gi based solution allows you to address the challengesto control and charge new data services

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