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Reliable Billing Architecture for Telecom Service Providers

Most of the Telecom Service Providers do go for package-based Billing applications for their critical advantages over bespoke applications. Most of the rating and billing is happening using out of box functionalities offered by the COTS packages. In recent times, there is a major drift in services being offered to the end customers. More and more innovative products and services are being launched by the operators to retain their competitive stand in the market. Many of the leading billing packages are not capable enough to run at this pace of innovations in the product lines. Hence they fail to offer more than 80% of out of the box functionality to the operators, making the operator invest in customizing the package and making it complex, as they launch new product lines. Operators also lookout on putting a check on their license cost and expect the package do more for less.

One direct impact of this would be an incoherent implementation and customization of a package to the requirements. This makes the system complex, un-maintainable and counters the advantages provided by the package implementation. This could also potentially result in a revenue leakage due to various software issues of any complex system. These are coming from either a huge customization (of more than 50%) or in trying to make the existing older versions of package work for those brand-new, future-focused requirements. How would operators solve such issues when the package inplace doesn’t scale up to their new requirements and a forcible application of the same potentially results in a revenue loss?

A better approach for the operators would be to componentize their BSS systems as much as possible. While doing so, the entire functionality of BSS would get scattered to these multiple modules and thereby we can avoid the first risk of having to depend only on one core billing system for everything. The components could include separate systems for Product Master Data, Revenue Reconciliation, Billing, Invoicing etc. Once componentization is done, a good modular architecture should be crafted to integrate these various systems. Thus, new product launches could only impact the relevant components and not the core billing system, most of the times. One more advantage with this approach is that the operator will have the liberty to have a low-end billing system that is not very complex in functionality, easily maintainable and not heavy on license-costs.

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Comments

The idea of a 'best-of-breed' component based solution architecture sounds good. However, over a period of time when the complexity and customisations of the implemented solution grows and the cost of maintaining such a system can increase significantly. My view is that neither the end-to-end Billing systems nor the component based solution are a permanent best solution. Both the approaches come with their own cost model/ characteristics. In my opinion, a pragmatic approach of what best suits at a point-in-time for a specific client situation would need to be assessed before choosing an approach.

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