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Telecom SaaS Billing Solutions Case Study

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Shares an approach that Telecom providers could use to zero in on a type of billing software, including SaaS.

Published in: Technology, Business

Telecom SaaS Billing Solutions Case Study

  1. 1. Business Case – Should A Telecom Operator Deploy SaaS Billing Solution? Prepared by: Atul Gulrajani
  2. 2. Guide to Navigate Through the Presentation • Slides 1 and 2 demonstrate understanding of the Telecom market and the importance of an optimum billing solution for operators in the evolved high- tech world • Slide 3 lists and discusses examples of operators who have deployed SaaS billing solutions • Slide 4 analyzes the potential/ future of Telecom SaaS billing solutions market by explaining key trigger points • Slide 5 discusses analyzing client’s “as-is” solution to prescribe a suitable solution • Slide 6 discusses next steps such as seeking an appointment with the key decision-makers and IT heads at client office to discuss next steps: evaluate “as-is” model and understand requirements for the “to-be” design
  3. 3. Number of New Telecom Services Lead to Billing Complexities – Which Billing Solution is the Best? …Technology Enables Wider Services Consumer Needs Increase… Operators Face Challenges … …Scout for Billing Solutions Outdated Software: • Legacy architectures and processes • Silos High Volume: • Large number and volume of data sets Increased Regulation Competition: • Privatization • Margin pressures • Number portability Strong Suppliers • Content providers • Content aggregators Commercial off- the-shelf (COTS) Custom-built Hosted solutions ? ? ? Call Experience: • Uninterrupted service • Cheap calls and SMS Real-time access to: • Information via internet • Usage/Bill details • Value-added services Wider choice: • Services and • Packages Flexibility: • Payment channels • Plans Interactive communication • Two-way information and cash flow SERVICES Voice and text: • Inward/Outgoing calls • SMS Internet: • Mobile, computer, tabl et Value-add services: • Chat Call management: • Call forward/ wait/ voice box/ blocking • Do-not-disturb Interactive: • Tele-voting • IVR TECHNOLOGY • Smart phones • 3G/4G network
  4. 4. Cloud-based Billing Software Offer a Number of Benefits – Are These Compelling Enough? 1. Cloud solutions enable 15-40% savings through reduced infrastructure requirements and administrative overheads Parameters Sub-parameters Solution Capability Security and Control Security Control Customization Deploy and Run Time to deployment Ease of running and maintenance Functionality, Agility, and Compatibility Upgrade new features Compatibility with other systems Ease in adding new products/services Real-time data Ability to scale up/-down Cost Total cost in long-term1 Upfront investments Revenue: $10 billion plus Operations: Multi- national Employee Size: 100,000 plus Revenue: $1-$10 billion Operations: MNC /Domestic Employee Size: 10,000- 100,000 Revenue: Less than $1 billion Operations: Domestic Employee Size: <10,000 Large Operators Mid-size Operators Small Operators Comparison of SaaS vs. COTS/ Custom Solutions Solid bracket indicate most important parameters for the operators and dotted brackets relatively less important Low High Low High Low High Low High Operator Priorities COTS/ Custom SaaS
  5. 5. Already Compelling Enough for Some – Small and Mid Size Operators Deploy SaaS Billing Software Operator SaaS VendorThe Connect: What was sourced and why? Solution: Billing and reporting solution Problem: KPN’s legacy BSS system required a lot of manual work, longer time to introduce improvements, and higher and mounting maintenance costs Benefits: • End users benefited from significant reduction in costs of mobile communications within the company • One contract in every country instead of many providers in various nations. Self-service, mobile phone cost reporting functions Solution: Converged billing and customer care solution Problem: Legacy billing system limited Smart Telecom’s (ST) ability to quickly scale-up operations and launch new services Benefits: • ST quickly launched new services, innovative pricing plans and an advanced customer experience in the Nepalese market • ST launched new interactive consumer offerings, new music, news and entertainment services to interactive health services
  6. 6. SaaS Billing Software to See Broad Adoption – Has the Countdown Begun? 11% penetration Large COTS/ Custom Vendors 3. Watch out for increase in SaaS market penetration 2. Consider independent/ partnership SaaS solution 1. Enter market and/ or acquire specialist vendor/s Large Telecom Firms SaaS Market 3. Interesting solutions, not for me though 2. May be I could seriously start considering 1. Test SaaS 15-20% penetration 25-30% penetration 3 2 1 2. Deliver consistently on consumer needs 1. Work with large vendors to overcome real/ perceived challenges
  7. 7. Existing Infrastructure, Finances, and Needs of the Firm to Determine Adoption of SaaS Billing Solution COTS INFRASTRUCTURE & SYSTEMS • Integrated/ Silos, in/compatible • Age of the systems and vendor • Functionality and features • Network capabilities FINANCES • Revenue/ Profitability • Investors appetite • Cash flow • Debt leverage FIRM NEEDS • Management vision • Firm strategy • Market strategy • IT strategy
  8. 8. NEXT STEPS AND OPPORTUNITIES 1. Seek an appointment with the key decision-makers and IT heads at client office to discuss next steps: evaluate “as-is” model and understand requirements for the “to-be” design 2. Evaluate SaaS or COTS solutions 3. Short-list SaaS or COTS vendor 4. Implement if COTS solution and ensure smooth transition to new system 5. Transition operations to SaaS model
  9. 9. REFERENCES • KPN Overhauls BSS for Multinational Mobile with Comarch, Billing World • Telecommunications billing in the competitive wireline arena • Consuming BSS/OSS from the cloud – fiction or reality? • SaaS Appeals Now, More Than Ever • Magic Quadrant for Integrated Revenue and Customer Management for CSPs • Pipeline: The Birth of BSSaaS • Evolution or Revolution? Strategies for Telecom Billing Transformation, Booz & Co. • Billing Systems - From Service to Bill • It’s a new world: • Three Tectonic Shifts are reshaping our industry and driving convergence • Revenue Management And The Future Of The Telecommunications And Content Industries • Upping the Ante in the OSS Game, Billing World • Telco billing and cloud services: a multi-faceted business challenge • Telcos in the cloud • Telcos advance in cloud computing, KPMG

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