european 3g mobile forum 416965
TRANSCRIPT
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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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VoluBill Company Confidential 3
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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VoluBill Company Confidential 6
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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VoluBill Company Confidential 8
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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VoluBill Company Confidential 9
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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VoluBill Company Confidential 10
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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VoluBill Company Confidential 11
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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VoluBill Company Confidential 12
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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VoluBill Company Confidential 14
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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VoluBill Company Confidential 16
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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VoluBill Company Confidential 17
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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VoluBill Company Confidential 21
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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VoluBill Company Confidential 23
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