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Traditionally, charging and billing systems are tightly associated with discrete services, which are distinctly developed either for prepaid or post-paid subscribers. This approach means certain services are available only to some subscribers like post-paid clients, thereby limiting the revenue-generating potential of operators.
A real-time convergent charging solution is a key enabler for the delivery of any service to any subscriber, regardless of means of access and payment method, while allowing customer management to be provided by traditional means and through device or other non-agent channels. It also promises lower production costs and increases the potential to maximize revenue through an expanded product portfolio and enhanced service experience. Further, it enables operators to manage and reduce the risk associated with real-time transactions.
With real-time convergent charging, operators can provide post-paid customers with real-time services such as real-time spending notification and advice of charge. Meanwhile, prepaid customers can enjoy a wide array of features traditionally reserved for contracted customers such as loyalty discounts and personalized plans.
An operator can thus offer a quad-play bundle that includes a prepaid or hybrid mobile plan with benefits across the bundle components. Another option is offering IPTV service as part of a contract bundle that may include real-time charging elements, such as the ability to control spending limits for pay-per-view shows.
Prakash Sadagopan, director of product strategy at Convergys, said operators are faced with two major approaches -- off-board and on-board -- for the implementation of a real-time charging strategy.
With the off-board approach, the charging capability is separate from the network. A real-time integration connects the service logic component of the network to the rating engine, thereby using the network infrastructure for network connectivity only. The result, Sadagopan said, is a single system for charging, rating and billing.
The off-board approach is functionally rich and delivers a single infrastructure capable of managing all processes. With a single product management function and real-time capabilities, it enables operators to easily design and market integrated campaigns to both prepaid and post-paid subscribers.
Sadagopan said an off-board approach also enables a multi-vendor strategy for the delivery of network components and the ability to drive a common view of network-based solutions. This can reduce the cost of new network components by removing the need for charging from the network. As a result, a middleware charging layer can sit between the network session controllers and the charging engines. If this layer is standardized, the operator will be able to enjoy the flexibility of adding new network components and new value-added services.
On the other hand, with an on-board solution, the legacy charging component of the IN is replaced with a convergent rating engine. The rating engine is embedded within the IN, requiring no 'hop' from service logic to the rating process. Sadagopan explained that architecturally, this solution is similar to current IN systems, providing high availability, low latency and operability capabilities.