Communication service providers (CSPs) seeking to monetize their network and service investments are exploring advanced service personalization, agile billing models and revenue streams beyond traditional connectivity and communication services. These new business models may include combining non-traditional or marketplace services that are delivered through partners, as well as more personalized service packages that rely on increasingly dynamic billing and differentiated pricing models.
Many CSPs have realized that their existing billing systems cannot adequately support these new services, prompting them to turn to more flexible and scalable multi-industry cloud-based billing platforms that also meet the critical needs of the telecom sector. In this blog post, we take an in-depth look at the capabilities and benefits of these modern, next-generation platforms.
What is telecom billing software?
Telecom billing software is an essential part of any CSP’s Business Support System (BSS) as it manages and dictates how subscribers get invoiced and pay for services consumed. This software is designed to manage the nuances of the telecom world; a world in which subscribers consume services according to fixed or usage-based billing models, where enterprises lease network capacity from the operator, and where revenues are shared with channel and service partners in the complex telecom supply chain.
Telecom billing platforms must be tightly integrated within an operator’s BSS so that billing activity can be activated when services are fulfilled, adjusted when changes to service consumption occur, or halted when the customer cancels or changes the service. It must also be able to support the vast array of rates, discounts, and pricing packages operators offer to subscribers. As the industry advances to offer more personalized or configured service options, telecom billing software must be able to support negotiated propositions, as well as those curated by either humans or AI.
What are the different deployment options?
There are three primary options for deploying telecom billing software: on-premises, cloud, and hybrid. Historically, telecom operators have relied on large, monolithic billing/BSS systems installed on-premises or on-site, typically within their own large data centers. These systems are designed to support traditional lines of business that have now become commoditized, and are expensive, architecturally closed, and require extensive customization.
As many components of the BSS, such as Salesforce CRM or ServiceNow OSS, have moved to the cloud, telecom billing software has followed suit. Operators are turning to cloud billing solutions to commercialize new revenue opportunities offered by improved network and service agility, driven by network virtualization and capacity investment. This shift enables more dynamic and multi-industry go-to-market (GTM) strategies that can operate alongside legacy processes, offering the flexibility to bill for new products, channels, and services, while managing an ever-growing and complex ecosystem of partners.
The third deployment option is a hybrid approach, in which traditional telecom billing vendors port their on-premises solutions to cloud infrastructure. However, this option often fails to deliver the full benefits of true cloud-native solutions, namely zero-code configurability, automated software updates, true SaaS pricing, and on-demand system scaling. Read our eBook on how to spot fake SaaS BSS to learn more.
What are the benefits of cloud-based telecom billing software?
Telecom operators that deploy native cloud-based billing software within their BSS gain a wide range of benefits. The hyper-scalability of cloud technology allows operators to expand and launch new monetization models – especially those requiring extensive data processing – without limitations. Automated software updates from the vendor ensure operators are always using the latest version, with new features often driven by customer community feedback.
Simple configuration capabilities allow operators to quickly and easily adjust their billing systems without significant investments in IT resources or slow and lengthy change request (CR) projects. Cloud-based telecom billing software is also designed to integrate seamlessly into an operator’s BSS, providing critical stakeholders with role-specific platforms to access and manage commercial arrangements and billing effortlessly.
Finally, by accessing cloud-based telecom billing software through SaaS licenses, operators avoid the significant capital expenditures (CAPEX) associated with on-premises systems, which can create long-term financial burdens.
What are the capabilities of cloud-based telecom billing software?
Cloud-based telecom billing software enables B2B, B2C, and Wholesale CSPs to manage end-to-end order-to-cash-to-care processes, billing customers for a wide range of services, from network access to value-added communications and products benefited by connectivity. Core capabilities include subscription and usage rating, invoice generation with tax processes, payment processing, dunning, and analytics services.
When enhanced with AI, cloud-based telecom billing platforms provide various stakeholders, such as customer service agents, product managers, and revenue assurance teams, with highly efficient tools. These tools enable faster, more accurate resolution of billing inquiries, personalized customer engagement, and the identification of revenue growth opportunities, while mitigating revenue leakage and risks. Additionally, cloud-based telecom billing supports wholesale billing, where business customers can resell telco services to specific market segments or as part of value-added products.
In short, cloud-based telecom billing software delivers all the capabilities of traditional on-premises systems, but without the limitations.
How is telecom billing software delivered?
Since cloud telecom billing software is typically SaaS-based, it is delivered differently from on-premises systems. There is no need to install or purchase infrastructure, or measure, size, or ship equipment. Many cloud-based telecom platforms come with pre-integrations, connectors, and adapters for common BSS/OSS ecosystem components, such as CRM, CPQ, SOM, or ERP, ensuring deployment is swift and aligned with best practices.
Once integrated, the billing platform is usually configured starting from best-practice processes, tailored to meet specific customer requirements. Additionally, subscriber and product data often need to be migrated from legacy systems. Cloud telecom billing clients can choose from various approaches, including migrating all data at once, selectively migrating by segment or service, or adopting an elective process, such as moving customers to revised products and services as they renew.
How is telecom billing different from billing for other industries?
The volume and scale of subscribers and usage activity creates a level of billing complexity unique to the telecom industry. Every day, operators manage millions of subscribers who generate vast amounts of usage data across multiple accounts and devices. Additionally, usage-based billing, diverse rates and discounts, expanding product catalogs, and personalization options that allow subscribers to create unlimited service combinations place even greater demands on the billing platform.
The telecom industry also operates within a complex IT ecosystem for service delivery and management, adhering to common standards from organizations like 3GPP and TM Forum to ensure network and system interoperability – standards to which telecom cloud billing platforms must conform. As telecom operators continue to pursue innovative commercial strategies to stay competitive, the complexity of telecom billing will increase, further emphasizing the need for modernized telecom billing software.
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