Friday, 4 March 2011

Payments

Payment can refer to the paying or settlement of bills (receiving money from customers), recharging of prepaid balances, and a telecoms service offered to customers - mobile payment or m-payment.

M-payment is a alternative payment method whereby consumers or businesses can pay for goods and services using their mobile phone. There are four common types of m-payment:

  • premium SMS-based transactional payments
  • direct-to-bill payment
  • mobile web payments
  • contactless near field communication.

M-payment has been used in developed markets in Europe to pay for services such as parking, m-payment using a direct-to-bill model has utility for business customers in particular since the aggregation of small sums onto a single (telecoms) bill helps avoid the cost of processing expense claims.

Premium SMS is used extensively to pay for content such as ringtones and is a type of "reverse billing".

Closely related to m-payment is Mobile money - a type of mobile service pioneered in developing markets that typically had a less developed banking infrastructure and is now taking off in more mature Western markets. Mobile money enables mobile customers to use the mobile network to remotely transfer money to individuals who do not have bank accounts. It can also be used to pay for goods and services.

Rating

In revenue management, rating is the process of costing a call or service. A rating engine takes the data supplied by a mediation engine and applies rates (monetary values) to these. When calls or data services have been rated, these are then sent to a billing engine which aggregates the charges into bills.

A modern rating system must be able to adapt to constantly changing prices, as well as more complex rating scenarios. For competitive reasons, rate plans may change relatively frequently today, and likewise the rate plan may be complex - having been set up, for example, so that once usage has crossed a certain threshold then a lower rate applies. Likewise other credits, discounts, and special rules may apply and need to be taken into account when rating.

Like mediation, as rating increased in complexity a new breed of standalone, specialist rating vendors came to market. Over time, these have largely been acquired by billing vendor.

Billing Mediation Systems

A billing mediation platform is a system used to convert data of certain datatypes to other datatypes, usually for billing purposes. Billing Mediation Platforms are used mostly by telephone companies, who typically need to process UDRs (Usage Detail Records). In call scenarios UDRs are most often known as CDRs (Call Detail Records), and among broadband carriers they are often referred to as IPDR.

The CDR/UDR datatypes could hold data such as NPX,NPA,Call Duration,peak time flag,call length and this data may be represented in binary formats. The billing mediation platform typically reads this data and converts into common normalized format.

Billing Systems and all other downstream systems, in turn, converts this data to component[its own] understandable format.

Billing mediation platforms get their name from their behavior: they "mediate" between a variety of other systems. In the typical telephone company scenario, the upstream systems (those providing data to the mediation platform) are network elements, such as telephone switches, and the downstream systems (those receiving data from the mediation platform) perform accounting, auditing, archiving, or bill-generation functions. The mediation system collects, collates and prepares data for consumption by the downstream systems, which often accept data only in a limited set of formats.

Typically a mediation platform is used for the following tasks:

  1. Collection and validation of CDRs
  2. Filtering out of non billing-relevant CDRs
  3. Collating
  4. Correlation of different input sources CDRs
  5. Aggregation of partial CDRs related to the same call
  6. Format change and CDRs normalization
  7. Business transformation of data

In a telecom billing scenario, mediation is the first step after receiving a CDR. The mediated CDR is forwarded to a rating engine, which calculates the charge associated with the CDRs.In today's world Rating Engines are more becoming necessary for the telecom billing system to meet the growing variant customer needs for different services.[citation needed]

Despite the name, not all of the data transferred via billing mediation platforms is actually used for billing purposes. For instance, the mediation software might generate traffic volume statistics based on the number and origin of the records passing through it. Those statistics could then be used for capacity planning, as part of a network monitoring procedure, or for any other business intelligence applications.

Sophisticated Billing Mediation software from various providers serves end to end functionality for Telecom Operators. Mediation software performs various operation from Collection to Downstream Distribution to modules like Retail Billing, Interconnect Settlement, Business intelligence, Fraud Detection, Revenue Assurance, Test Call Generation. Following list of activities provides an insight on Mediation software activities

  1. Collection and Archive
  2. Decoding/Encoding
  3. CDR Normalization (Common Format)
  4. Filtering
  5. Conversion
  6. Validation
  7. Record Enrichment (Using Complex Reference Data)
  8. Duplicate Record Detection
  9. Aggregation or Correlation
  10. Buffering
  11. Cloning
  12. Sorting
  13. Downstream Format Mapping
  14. Header and Trailer generation
  15. Downstream Distribution
  16. Error Messaging and Alarms
  17. Auditing and Reports
  18. Reconciliation
  19. Reference Data Configuration
  20. Provisioning services for the subscription.

Complementary to Billing Mediation functions, comprehensive mediation platforms also provide functionality dedicated to Service Provisioning (the two areas frequently intermix as services configured and used by the end customer result in usage data records generation in the network).

Mediating between the systems is not the only job that Mediation Platform can do. Actually this can be used as a provisioning agent. The basic provisioning commands can be configured within the mediation system and whenever we get a request for the system which does the provisioning, the request can be converted into a file , in which mediation can append the service provisioning commands and send it to HLR for activating any request. This of course , load dependent but can come very handy when there is a crisis in the other system.

At core Mediation involves data transfer between various systems with or without modification of data starting Network elements to OSS/BSS systems.

Mediation platforms for Telecom Practice supports various systems:

Telecom operators offer Voice,video,data,fax and internet services to subscribers and partners on various product lines.Mediation products are tuned to provide solutions for complex business challenges.