This document summarizes a webinar about charging and billing for the digital economy. It discusses how traditional IN prepaid charging and billing systems are being replaced by real-time charging platforms to enable new data services and plans. It provides examples of mobile operators that have implemented real-time charging to offer flexible pricing models, maximize revenue from 4G/LTE investments, and improve the customer experience. The webinar highlights the importance of policy control integrated with charging to further stimulate innovation. It also outlines key use cases operators are pursuing, such as multi-device plans, data passes, and speed-based tiers, and the revenue and customer benefits these bring.

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inform innovate accelerate optimize
Charging &
Billing for the
Digital
Economy
Sponsored by:

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V2013.3
Today’s speakers
Tony Poulos
Market Strategist, Editor IRM
Newsletter & Channels
TM Forum
Corine Suscens
Senior Marketing Manager
Openet

3. Solving
three core
challenges
for any
business
© 2013 TM Forum | 3
Transform
IT & operations
to reduce costs,
minimize risk and
improve time-to-market
Agile
Business
Program
Customer
Engagement
Program
Big Data
Analytics
Maximize
market share,
customer growth
and loyalty
Open
Digital
Program
Deliver new
services
quickly, easily
and securely
with partners
Business
Process
Optimization
Revenue
Management
Cloud and
Virtualization
IT & Operations
Transformation
Big Data
Analytics
Rapid Partner
Onboarding
Digital Partner
Security
Managing Money
between Partners
End-to-End
Service Quality
Experience
Management
Cyber Security
Customer
Privacy

4. © 2013 TM Forum | 4
Industry Context
 “Over The Top” challenge
 Emerging technologies
 Explosion of connected
devices

5. The ‘Now’ Generation
 They expect to be connected anytime, anywhere
 They use the internet in real-time, all the time
 They expect updates in real-time
 They expect information in real-time
 They want to be able to manage their accounts in
real-time
 They buy stuff in real-time
CSPs need to have real-time systems in place to
make money from new services enabled by high
© 2013 TM Forum | 5
speed mobile data

6. Operators are asking
© 2013 TM Forum | 6
What will be the differentiators?
 How can we maximize return on 4G/LTE/NGN
investments?
 How can we improve the customer experience?
 How can we improve our business models?
What new opportunities can or should we invest in?

7. How the TM Forum can help
© 2013 TM Forum | 7
 Of course, we have Frameworx
 Our Collaboration Program
 Catalyst Program
 Specialist reports and publications
 Inside Revenue Management newsletter
 Blogs
 Co-operation with industry Thought Leaders

8. What does it all mean?
© 2013 TM Forum | 8
As always, the measure of our
success will not be how many new
services and products we devise but
how effectively we can generate
revenue from them.
Effective, accurate and timely
charging and billing will be key!

9. Webinar: Charging and Billing for the Digital Economy
Corine Suscens, Senior Marketing Manager, Openet
23rd October 2013

10. Agenda: Charging and Billing for the Digital Economy
• The Future for Legacy IN Prepaid Charging and Traditional Billing
• Accelerating Innovation and Increasing ARPU in the Digital Economy
w w w . o p e n e t . c o m 10
• Research Findings and LTE Operator Case Studies
• Research Findings and Operator Examples
• Key Use Cases and Operator Success Stories
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

11. w w w . o p e n e t . c o m 11
The Future for Legacy IN Pre-paid Charging
and Traditional Billing
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

12. The Future for IN Pre-paid Charging Systems
Openet research 2013, 80+ operator respondents
• Why are operators replacing IN systems with real-time charging / OCS
• Complex, time consuming and costly to charge for data (e.g. data passes, shared
• As voice becomes data with VoLTE, IN charging systems are no longer required
w w w . o p e n e t . c o m 12
data plans, dynamic pricing models)
• Dependency on IN vendors to develop and configure services
• High total cost of ownership
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

13. The Future for Traditional Billing Systems
• Traditional post-paid billing systems lack real-time capabilities
w w w . o p e n e t . c o m 13
• Restricts data innovation
• Customers demand immediacy
• Silo-based architecture with IN pre-paid charging
and post-paid billing systems means:
• Slower time to market
• No unified view of individual customers
• Service restrictions depending on payment type
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
Openet research 2013, 80 operator respondents

14. T-Mobile Netherlands: Centralized Real-time
Charging (OCS), Replacing IN Pre-paid Charging
• OCS to provide one single real-time charging platform for all services:
• Solution also includes a Centralised offer catalog
• Enabling sophisticated charging models, fast launch of services, reduced
complexity/TCO and maximum customer satisfaction
• Sample use cases:
w w w . o p e n e t . c o m 14
• Post-paid, Pre-paid, Data, Voice, RCS, LTE and all IMS services
• Dynamic pricing models
• Innovative device plans
• Rich customer engagement
• Combinations of services for
pre-paid and post-paid subscribers
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

15. LTE Operator in North America: Real-time Charging (OCS),
Leveraging IN platform to support 3G & 4G services
• Convergent pre/post-paid and flexible data charging
• Capitalizing on existing infrastructure investment to launch next generation
services, accelerate time to market, and offer more flexibility to customers
w w w . o p e n e t . c o m 15
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
• Sample use cases:
• In-app charging / billing
• Shared data plans
• Hybrid pre/post-paid accounts
• Real-time usage visibility and notifications
• Cross service promotions
• Support MVNOs

16. w w w . o p e n e t . c o m 16
Accelerating Innovation and Increasing ARPU
in the Digital Economy
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

17. w w w . o p e n e t . c o m 17
The Central Role of Real-time Charging in
Accelerating Innovation
• Real-time charging/OCS capability that is
truly flexible and convergent
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
• Innovation
• Sophisticated data pricing plans & bundles
• Dynamic pricing models
• Customer experience
• All services to all customers,
pre-paid and post-paid
• Flexible payment options, hybrid accounts,
• Real-time visibility over cost and usage
• Cost effectiveness and faster time to market
• A single charging platform for all services
Openet research 2013, 80 operator respondents

18. Further Innovation with Policy Controls Integrated
with Charging (PCC)
• 73% of operators : PCC is important in enabling innovation
• Coordinate network resources with new options for revenue generation
• Ensure high quality experience
w w w . o p e n e t . c o m 18
• Real-time control, appropriate resource allocation
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
Application
specific pricing /
Zero rating
Data
service
passes
Content
led
bundles
Speed
tiers
& boost
Multi-device
&
shared data
plans
VoLTE
control &
charging
Split
billing
(home/
work)
Traffic
prioritization:
e.g Premium
customers
Intelligent
Wi-Fi
offloading
& bundles

19. The Importance of a Centralised Offer Catalog in
Accelerating Time to Market
Openet research 2013, 80 operator respondents
w w w . o p e n e t . c o m 19
• Create, launch and manage all offers
to all customers in a central place
• Simplicity and time saving
• Rapid campaign and bundle rollout
• Example: T-Mobile Netherlands
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

20. Most successful Strategies to Stimulate Loyalty & ARPU:
On-Device Purchase and Engagement
w w w . o p e n e t . c o m 20
• Real-time, on-device purchase and engagement
• Real-time, context-aware offers
• Offers with usage alerts
• 20% uptake with an operator
• Upsell add-ons to base contracts
• 60% of Pelephone customers buy
data add-ons: 4.1 Euro ARPU lift*
• On-device, real-time cost and usage visibility
• Operators: revenue maximization and cost savings
• Customers: flexibility, convenience, visibility
• Requires PCC extended to the device
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

21. Key Use Cases and Operator Success Stories
w w w . o p e n e t . c o m 21
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

22. w w w . o p e n e t . c o m 22
PCC Use Cases Being Rolled Out
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only

23. Operator Success Stories: Multi-device & Shared Data Plans
• Multiple users and devices can share
a common pot of data
• Verizon: 30% of accounts on a ‘share
everything’ plan
• ARPA is up 6.9%
• 34.9M retail post-paid accounts: 2.67
w w w . o p e n e t . c o m 23
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
connections per account
• AT&T: almost 10M customers on
Mobile Share plans
• over 25% of those accounts opting to
go with a data plan with 10GB or over
Sources: Verizon Q1 2013 report, AT&T Q1 2013 report

24. Operator Success Story: Data Service Passes
• 10% Conversion to recurring
monthly data plans
• 26% Growth in data users
• 17% Growth in data revenue
w w w . o p e n e t . c o m 24
• Data day pass (e.g. 10MB for 1 day)
offered to existing customers who don’t
have a data plan
• Triggered when they try to access data
(real-time , context aware offer)
• Offer cost control and peace of mind
• Increased data revenue and ARPU, cost
reduction, customer satisfaction
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
• 98% Reduction in credits for
unexpected charges
• 120,000 Reduction in
customer care calls (per year)

25. Operator Success Story: Speed Based Tiers
w w w . o p e n e t . c o m 25
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
• Swisscom – unlimited data
with differing speed tiers
• Meet customer needs, link
network resources to
revenue
• Overall ARPU growth
• Initial expected decline
Source: Swisscom investor presentation – Feb 2013

26. w w w . o p e n e t . c o m 26
Summary
• Traditional IN pre-paid charging and billing
to be replaced by real-time charging/OCS
• Accelerating data innovation requires:
• Real-time charging/OCS - flexible, convergent
• Charging integrated with policy control (PCC)
• Centralised offer catalog
• To stimulate loyalty and ARPU:
• Real-time, on-device purchase and customer
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
engagement
• Require PCC extended to the device

27. w w w . o p e n e t . c o m 27
• Customer base includes the world’s largest service
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
About Openet
• Founded 1999
• 960+ employees
• 80 customers worldwide, in 32 countries
• Offices in Ireland (HQ), US, Brazil, & Malaysia
providers (15 with >10m subscribers)
• Products and solutions to monitor & control
network access, charge in real-time for services, and
deliver business insight from network usage data
• Market leader in policy & charging control (PCC)
software & solutions
‘we make data make money’
…our transaction management software
enables the commercialization of
network activity

28. w w w . o p e n e t . c o m 28
Corine Suscens, Senior Marketing Manager, Openet
corine.suscens@openet.com
© Copyright 2013 Openet – Company Confidential
For Use Under Non-Disclosure Only
Thank you
Download Research Report: Charging and Billing for the Digital Economy
www.openet.com/chargingresearch

29. © 2013 TM Forum | 29
V2013.3
Q & As

30. © 2013 TM Forum | 30
V2013.3
Today’s speakers
Tony Poulos
Market Strategist, Editor IRM
Newsletter & Channels
TM Forum
Corine Suscens
Senior Marketing Manager
Openet

31. © 2013 TM Forum | 31
V2013.3
Thank you for taking part