How 5G and IoT is Changing Telco Billing Game
Emergence of the Internet of Things (IoT) has revolutionized the way we interact with technology, enabling the seamless connection of devices and generating a vast amount of data. The transformative technology has gained significant momentum in recent years, with the global IoT platform market size expected to grow to $1057.55 billion in 2027.
The exponential rise in digital lifestyles has significantly amplified the need for interconnected devices, presenting a lucrative opportunity for telecommunication companies to leverage their infrastructure and tap into the vast collection of data in IoT system management.
However, this rapid technological progress also poses challenges, particularly in the realm of charging systems. Traditional systems, designed primarily for voice, messaging, and data, are now required to be agile, real-time, and adaptable to intricate business and pricing models.
Unlocking 5G Monetization Opportunities
With the fundamental changes brought about by 5G in telecommunication billing, it is evident that the opportunities for unlocking monetization in the 5G era are vast and transformative. As telcos embrace the advancements in billing systems and adapt to dynamic pricing models, they open up new avenues to capitalize on the potential of 5G.
#1 Convergent Charging
Convergent charging brings together online and offline charging systems to address new and emerging 5G monetization use cases. It involves the integration of online and offline charging systems, which allows for a more comprehensive and efficient approach to billing and payment processes.
This convergence is a result of the introduction of the charging function (CHF) by the 3rd Generation Partnership Project (3GPP), which serves as a central entity responsible for collecting network and service usage data.
In the context of 5G, the charging function takes the form of the 5G charging function (5G CHF). Its primary objective is to facilitate accurate payment calculations, ensuring that users are charged appropriately for the services they consume. This functionality becomes crucial as the 5G ecosystem introduces diverse and innovative services that require flexible pricing structures and business models.
Moreover, the integration of convergent charging enables communication service providers (CSPs) to swiftly create and deploy new services and offers to consumers. By leveraging the capabilities of the 5G CHF, CSPs can efficiently roll out these services, ensuring a seamless user experience and enabling timely monetization of emerging 5G monetization use cases.
The convergence of online and offline charging systems through the implementation of the 5G CHF not only enhances the accuracy and efficiency of payment processes but also empowers CSPs to adapt to the dynamic nature of the 5G landscape, opening up opportunities for innovative service offerings and monetization strategies.
#2 Real-Time Billing
Real-time billing is a game-changer in the world of telecommunications, made possible by the capabilities of 5G networks. Unlike traditional billing systems that operate on a delayed or batched basis, real-time billing enables telcos to calculate and charge customers for services in the moment they are consumed. This instantaneous billing process provides customers with immediate visibility into their usage and charges, enhancing transparency and reducing billing disputes.
Real-time billing is particularly valuable in the context of 5G monetization, where data-intensive services, such as high-definition video streaming or immersive augmented reality experiences, can have varying durations and data requirements. With real-time billing, customers are charged precisely for the exact amount of data and time they utilize, ensuring accurate cost allocation.
Additionally, real-time billing empowers telecom operators to have greater control over revenue management. They can promptly identify any anomalies or fraudulent activities and take immediate action, reducing revenue leakage and enhancing overall billing accuracy. Furthermore, real-time billing allows for more agile and responsive pricing adjustments, enabling telcos to adapt their offerings quickly to changing market demands and customer preferences.
#3 Dynamic Pricing Models
Dynamic pricing models in the 5G era revolutionized the way telcos charge for their services, moving away from fixed pricing structures towards more personalized and flexible approaches. With dynamic pricing, telcos can set prices based on various factors, such as network congestion, time of day, specific services used, or even individual customer preferences.
Dynamic pricing models also enable telcos to cater to different customer segments with tailored pricing strategies. For instance, they can offer different tiers of service with varying levels of data allowances, speeds, or quality of service, allowing customers to choose the option that best aligns with their needs and budgets.
Moreover, dynamic pricing opens up opportunities for revenue optimization by capitalizing on the value customers derive from specific services. Telcos can introduce add-on features or premium services that customers can opt for at an additional cost, providing them with enhanced experiences and generating additional revenue streams.
Overall, dynamic pricing models bring flexibility, personalization, and adaptability to telco billing. By aligning pricing with usage patterns, network conditions, and customer preferences, telcos can optimize revenue generation, improve customer satisfaction, and remain competitive in the evolving 5G monetization landscape.
A Need for 5G-ready: Dynamic Online and Offline Convergent Charging Engine
The rise of the Internet of Things (IoT) has created the need for dynamic billing solutions that are specifically designed to cater to the unique requirements of the IoT platform, especially when it comes to various circumstances to be addressed.
Neural Technologies’ adaptive Online & Offline Charging solution is specifically designed to address the challenges of a complex, multi-level, or customized tariff landscape within the 5G monetization ecosystem.
Our solution offers a secure, dynamic, and optimized charging module that is perfectly suited to handle the intricacies of diverse pricing structures, with its powerful features including:
- Dynamic pricing: Flexible pricing and multi-level tariffed structure based on the operator’s usage profiles and tariff complexity.
- Tariff development and planning: Web configuration, simulation and step-by-step breakdown, comprehensive monitoring web tools.
- Cloud native charging: High availability, scalable and container-enabled for cloud deployments.
- Integration: Seamless billing integration via freely definable Billing and Revenue Groups.
- 5G / IoT / Smart Metering Rating: Supports 5G, IoT and emerging digital platforms.
- Rating Reconciliation: Comparing charged data record transactions and identifying discrepancies.
- Diameter IMS Charging: Online Charging System (OCS) for diameter.
- Pricing Support: Real-time rating supporting gross/net pricing as well as wholesale or retail.
- Balance Management: Support multiple accounts, rewards, allowances.