Interconnect Billing Challenges and Countermeasures - Subex

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powering the ROCwww.subexworld.comWhite Paper Interconnect Billing Challenges and Countermeasureswhen these agreements end and any rebate is calculated but carriers must be able to check profitability as the trade is inprogress. Margin analysis becomes difficult with such complex agreements in place. Most billing systems use anaccounting rate but the real rate paid – the difference between the base rate and the accounting rate may be quitedifferent (particularly in a back to the first minute deal). Carriers need to be able to monitor and analyze the profitability ofthe deal at any stage using the accounting and the operational rate (the rate most likely to be paid if all goes well) . Duringthe trade any financial data analysis would require accruals & estimations to be financially prudent and to understandprofitability.Operational efficiencyOne of the simplest means of improving operational efficiency is by reducing manual intervention. Operational efficiencyis about streamlining complex processes. Interconnect crosses many functions – product management, network, billing,finance, commercial negotiations, least cost routing. The co-operation and collaboration between these functional unitscan make a huge difference to business efficiency. Although most CSPs have automated systems in place, very few ofthem have everything integrated as one framework. CSPs need to concentrate on bringing different functions together bydesigning sleeker processes which have an ‘order to cash’ approach to interconnect processes. Many operators have Silosystems. A multiplicity of single function systems invariably leads to data integrity/ accuracy issues. This frustrates usersand hinders efficient business. Central data storage, clear, exception escalation based on thresholds and clear, meaningfulmanagerial / operational dashboards which present the relevant data to the operations professionals are essential if thecarrier wishes to be agile and efficient.Which challenges do you face as a carrier?Not every CSP faces the same challenges. Below we have profiled the CSP world in an attempt to show the challenges eachprofile faces. It’s a simplistic view; challenges might vary depending on factors such as geographic region, market sectoror business maturity. For example, we have categorized invoice reconciliation as a level 5 problem but a CSP with 40partners might also see reconciliation as a huge value-add depending on the percentage of losses they perceive in theirsupplier invoices.04 © 2010 Subex Limited
powering the ROCwww.subexworld.comWhite Paper Interconnect Billing Challenges and CountermeasuresChallengesData Reconciliation/Dispute ManagementContent Billing ChallengesRouting Challenges/Complex AgreementTraffic Management & Timely BillingAccurate Rating & BillingVery fewpartners say 1 or2; Minimal trafficload.Not manypartners, sayaround 20-50.High volume oftraffic, primarilyvoice based.CSP hasinterconnectionwith severalpartners, around50-300. Hightraffic volumes,mainly voicebased services.CSP providesseveralresellers.CSP hasagreements withseveral partners.Partners includeother CSP’scontent partners,Advertisers etc.Supportstraditional voicebased servicesand servicesand severalcontentrelatedservices.CSP deals witha large numberof partners, saygreater than500. Number ofpartner invoicesalso in creaseaccordingly andcould be greaterthan 500. CSPprovides voicerelated services,data services,contentrelatedservices, resellerservices etc.CSP ProfileFigure 1: Levels of challengesLevel 1 – New Market EntrantCSP profile – New EntrantVery few partners say 1 or 2; Minimal traffic load.Level 1 Level 2 Level 3 Level 4 Level 5ChallengesRecording and capturing traffic accurately & effectivelyAccurately rating trafficAccurately billing partnersLevel 2CSP’s profileNot many partners, say around 20-50. High volume of traffic, mainly voice based.ChallengesHandle high traffic loads which include processing, storing & monitoring dataTraffic needs to be rated quickly for near real time monitoringRouting challenges related to choosing best possible routeLevel 3CSP’s profileCSP has interconnection with several partners, around 50-300. High traffic volumes, mainly voice based services. CSPprovides services to several resellers.05 © 2010 Subex Limited
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