• Frens Jan Rumph

    Profile: I am a researcher, technical consultant and software engineer based in Holland. I have specialized in Charging, Accounting and Billing architectures. From both a technical point of view (IETF, 3GPP, etc) and a business point of view (TM Forum, GBA).

    Main interests: Telecom, Charging, Accounting, Billing, Service Orientation, Software Architectures, Software Engineering

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BIMS 2008 World BSS Awards

The BIMS 2008 World BSS Awards were announced Tuesday 10th of June, and are as follows:

Overall – Best Contribution to BSS
2008: LHS
2007: Amdocs & Orga Systems
2006: LHS

Judges’ Award: ‘Above And Beyond The Call Of Duty’
2008: Nawras
2007: BSNL

Innovation In Billing & Information Management
2008: Highdeal
2007: Progress Software
2006: Highdeal

Best Billing / Charging Implementation
2008: NTT DoCoMo
2007: Vodafone UK /Flexphone
2006: BT Mobile / Martin Dawes Systems

Best Content / Partner Management Implementation
2008: No nominations carried forward

2007: Interia PDTM / Comarch
2006: MTN South Africa and Echostar / MetraTech (Co-Winners)

Best e/m-Commerce / Payments / Collections Implementation
2008: Maxis/paybox & Garanti Bank

Best Revenue Assurance / Management Project
2008: BT / cVidya

2007: BT
2006: Allround/Magyar Telekom

Best Customer Management / Business Intelligence / Marketing Project
2008: No nominations carried forward

2007: Mobilink
2006 -Thuraya  Satellite Telecommunications

This years Judges:
Anil Prakash – President, Telecom Users Group of India
Barbara Lancaster – President, LTC International
Chris Sanders – Partner, Business Change Partners
Hugh Roberts (Chair) – Consultant Director, BSS/OSS RM Events, IIR Telecoms &
Senior Strategist – Patni Telecoms Consulting
Olga Botero – CIO, Bancolombia
Peter Smith – Director of Information Technology, Hong Kong CSL
Teresa Cottam – Principal Telecoms Analyst, Analysys

Frens Jan Rumph

Global Billing, Customer Experience and Revenue Management Initiative

It’s becoming a bit tumultuous in the group previously known as the Global Billing Association. After naming themselves the Billing and Customer Experience Initiative after teaming up with the TM Forum, they have now changed their name into the Revenue Management Initiative.

Although their actions (and probably their vast personal and professional network) define their right of existence, I’m not sure about their new name. I can understand the move to drop the name GBA, although it still is a very strong brand name in my perception, billing on itself is probably setting the scope to narrow. Also the integration within the TM Forum calls for a different name. And while the Billing and Customer Experience Initiative doesn’t really sound that catchy it does align with my perception of the challenges and opportunities in charging and billing.

The bill is traditionally an important part in the communication towards the customer. Yet we still only send a bill once a month and then leave it at that, while one can easily image that service usage and perceived service value can be increased by more direct feedback in relation to the service and the billing relationship. As an example: lack of transparency in the tariff function can unnecessarily be a prohibitive factor in using a service, especially if the service is complex or consumed abroad. But also customer usually will be quite happy to see when he or she can consume or just has consumed a service with a discount or even for free, this is completely different effect then when you see the aggregated discount at the bill at the end of the month!

So for me, charging, billing and settlement is about more then just the monetisation of a service, the usage to cash process. And the term revenue is an operator focused term, and focussing on the operator instead of the customer is not going to keep us in the game when competing with the internet domain…

Al together I hope they (or we actually, due the participation through my employer) can increase the quality of the billing stack in the Enhanced Telecom Operations Map!

Building Marketplaces with Managed Syndicated Services

The TM Forum’s catalyst project ‘Building Marketplaces with Managed Syndicated Services‘ presented its results at Management World 2008 in Nice. The project aims to implement standards-based B/OSS for cross-platform next generation service management’.

The project is sponsored by BT, Microsoft and Telefonica. Further contributions are made by Accenture, CA, Iptivia, Netcracker and Tribold.

The idea of the project is to create a service delivery concept which reassembles SOA service repositories. A service provider exposes a number of services that can be syndicated by a party that combines the services into a new service for the end-user. These syndicated services could be voice or any other multimedia communication services, content services, et cetera.

The project gives the following example, it neatly shows how a service supply chain can be instantiated by syndicating a number of loosely-coupled services:

  • A conferencing service is exposed by Service Provider A to be syndicated under three contracts: small, medium and large conference
  • A real time video session delivery is exposed by Service Provider B to be syndicated under two contracts: slideware presentation and animated presentation
  • A common billing service is exposed by Service Provider C to be syndicated under one contract: detailed charging
  • A service aggregator will contract an animated video presentation for a small conference with detailed charging. The service aggregator has the capability to capture events/information related to the health and usage of services provided by SP A and SP B before using SP C for invoicing the end user.”

Phase I of the catalyst project demonstrated the end-to-end product assembly, provisioning and service quality management capabilities ready for service syndication. The next phase, scheduled for the second half of 2008, will include settlements, billing and revenue allocation.

It sounds like a very interesting project; especially the second phase is of particular interest for me personally. I have done some research on similar problems from a charging and billing perspective already in the Ambient Networks project and more recently in an in-house research project within my company. Some of these results have landed in a paper called ‘Accounting, Charging and Billing for Dynamic Service Composition Chains’ which is currently under review for the 17th International Conference on Information Systems Development. This paper gives some views on the changes required on Accounting, Charging and Billing processes and enabling systems in order for them to support service composition similar to the service syndication concept presented in this TM Forum catalyst project.

This project is definitely on my watch list!

Customer Billing Satisfaction Linked to Churn

An article on billingworld.com was published yesterday, by Khali Henderson:

As always: Customer is King! These results are again an indication that Charging and Billing present opportunities for improvement.

Customer Billing Satisfaction Linked to Churn, TM Forum Study Shows

Customer satisfaction with telecom billing systems, especially for mobile services, is a key to customer loss rates, according to the results of the latest TM Forum Business Benchmarking study, released this week at Management World 2008 World in Nice, France.

The telco benchmarking data show a large gap between the top and average billing inquiry rates among service providers. Average performers logged 16.21 percent of inquiries as billing-related while leading companies reported billing inquiries at 1 percent of all inquiries. Significantly, good performers in this area show lower customer loss rates with less effective performers showing high loss rates.

“Since the largest cause of customer services calls for mobile subscribers is for billing- related issues, investments in streamlined billing plans and multiple-play plans can generate a good rate of return,” the report noted.

The study, “Building on Success: Investment Opportunities in Changing Times,” was produced for TM Forum by OSS Observer and included input from more than 40 communications service providers from Central and Western Europe, Asia-Pacific, North and Latin America. The poll has been conducted each spring and fall over the past three years.

The TM Forum Business Benchmarking results show a widening gap between communications service providers with the best and the worst churn rates. In fourth quarter 2005, the providers with the worst churn rates (2.81 percent) had nearly three times the churn as providers with the best churn rates (.94 percent). In second quarter 2007, providers with the worst rates (3.7 percent) had 5.5 times the churn as those with the best rates (.67 percent).

“To retain and acquire customers [communications service providers] must continue to pursue improvements in operations: service delivery and customer management,” the report added.
Benchmarking data show leading service providers deliver orders in seven days or less 99 percent of the time and need to rework those orders less than 10 percent of the time. Further, the investment in processes leads to an average resolution by leaders in less than one hour.

“Clearly customer satisfaction, and therefore the revenue opportunities for additional services, is related to this high level of performance at service delivery. Investment in mature process development at the onset of service offerings is much less expensive than fixing a process once fielded,” the report stated.

Lifetree Convergence missing the point

I just read an article on billingworld.com about how Lifetree Convergence uses McObject’s eXtremeDB for real-time rating and credit control. On one hand interesting, for me as an engineer at least, on the other hand completely missing the point!

My two cents…

Cent 1: Added value
While speed is ofcourse a (not unimportant) requirement for a real-time rating and credit control application, it’s not going to win you the war. Adding customer value just might, and a credit control request rated within 2 milliseconds or within 20 milliseconds just might not be perceived as value by the customer.

Cent 2: Service Orientation
When checking out their website I noticed the following remark: ‘@Billity’s powerful functionality comes in a Service Oriented Architecture (SOA). This provides you a framework to integrate existing, legacy applications on to a single platform.’ This sounds good of course, SOA is a great buzz word (yes, it still is). However I’ve not seen ANYthing that leads me to thing that it has any caracteristics of being service oriented. Just to be complete, the service oriented design principles as described by Erl:

  • Service Loose Coupling
  • Service Abstraction
  • Service Reusability
  • Service Autonomy
  • Service Statelessness
  • Service Discoverability
  • Service Composability
  • Standardized Service Contract

I think that the combination of SOA and charging/billing presents some great opportunities, in terms of business agility, time-to-market and total cost of ownership. But there are also some hurdles to be taken. One of those is performance. Some billing implementations have to process millions of CDR’s per hour, but the most commonly used SOA enabling techologies (SOAP/XML webservices) are probably not going to ‘cut it’. Especially if you consider that some charging/billing processes would involve a lot of service invocations.

I wonder if any vender will ever pick up on this by itself, the benifit for them might just not be big enough…

Frens Jan Rumph