How to optimise Inter Carrier Settlements Group Member Countries Didier Lacroix
Seminar on Costs & Tariffs for the TAF Group Member Countries Niamey (Niger), 23-25 April 2001 How to optimise Inter Carrier Settlements Didier Lacroix +33 1 45 23 92 92 [email protected] www.intec-telecom-systems.com © Intec Telecom Systems PLC 2001 Agenda u Objectives and Methodology u The Interconnect Process u Issues u Systems vs Interconnect Process u Conclusions © Intec Telecom Systems PLC 2001 Objectives & Methodology u Objectives l Assess the major issues faced by operators regarding intercarrier settlement l Propose solutions in terms of process and IT systems u Methodology l Workshops with operators l Based on optimisation of the InterconnecT process © Intec Telecom Systems PLC 2001 The Interconnect Process ; ; Operator A ( Operator B ( Network Operator Network Operator Call Detail Records Outgoing Statement Collection Incoming Statement Payment Negotiations ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement Mediation Outgoing Invoice Incoming Invoice Negotiations Payment Network Operator Network Operator © Intec Telecom Systems PLC 2001 Issue 1 : Agreement Options u Declaration Where Where an an Operator Operator is is unable unable to to identify identify and and invoice invoice interconnect interconnect traffic, traffic, the the other other Operator(s) Operator(s) may may provide provide the the required required billing billing information information u Invoicing Collection Mediation ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement Quicker settlement Start of payment conditions © Intec Telecom Systems PLC 2001 Issue 1 : Risks with Declaration u Inability to raise and verify invoices u Lack of management information u Accuracy l Out of date rates l Numbering errors l Day elements l Duplicate, missing and ineffective calls l Rounding u Invoices largely based on upstream operators declaration © Intec Telecom Systems PLC 2001 Issue 2 : Reduction of TAR u More accuracy needed u Reduce and measure errors and lost traffic u Minimise cost : l expand usage of hubbing traffic l take advantage of discounting u Bring new traffic (hubbing, refiling, transit,…) High risk of error / Additional delay Collection Mediation ITU Pricing Account Mgt IcT Pricing Invoicing Minimise cost Reconciliation Settlement Reconciliation Settlement © Intec Telecom Systems PLC 2001 Issue 3 : Traffic is increasing u IT systems cannot cope u Scalability is key! u System Architecture must be independent from System Functionality l CPU increase should lead to throughput increase Scalability Collection Mediation ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement © Intec Telecom Systems PLC 2001 Issue 4: Increasing Complexity u Ability to price new types of traffic l more and more services l more and more complex rating rules l Flexibility to implement new product and services u Controlled Impact l Pricing l Reconciliation (as consequence) l Mediation (for providing required information) Complexity Collection Mediation ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement © Intec Telecom Systems PLC 2001 Issue 5 : Reduce Settlement delay u Invoicing u Reduce adjustments l by improved pricing practices l by automation of data entry l by using a flexible billing system Collection Mediation ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement Automation of data entry Invoicing © Intec Telecom Systems PLC 2001 Issue 6 : Reconciliation delay u Quicker reconciliation process l automatic exchange of information with operators l automatic loading of reference data l use of effective start and end date l verify traffic completeness l full drill down facilities for better analysis • re-pricing, re-processing functions Collection Mediation ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement Automation Analysis Tools © Intec Telecom Systems PLC 2001 Issue 7 : Negotiation Position u Full control over the Interconnect process l Get accurate information l Full call tracability u Stronger negotiation position l Auditable system l Ability to prove other operators’ errors u Competition Collection Mediation ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement Process control © Intec Telecom Systems PLC 2001 Issue 8 : Face a dispute u Get accurate information u Ability to dig in the information and sort out the relevant information Collection Mediation ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement Accurate information © Intec Telecom Systems PLC 2001 Process vs Systems ; ; Operator A ( Operator B ( Call Detail Records Network Operator Network Operator Least Cost Routing Collection Outgoing Statement Incoming Statement Payment Negotiations ITU Pricing Account Mgt Reconciliation Settlement IcT Pricing Invoicing Reconciliation Settlement Mediation Interconnect Mediation Accounting Least Cost Routing Billing Outgoing Invoice Incoming Invoice Negotiations Payment Network Operator Network Operator © Intec Telecom Systems PLC 2001 Conclusion u For a small investment l organise your billing department and Systems along the Interconnect process u You can l save a lot of money l be in a strong negotiation position u Some experiences l Swisscom, France Telecom, SPT, MATAV, Telkom SA, TPSA, VSNL,…. © Intec Telecom Systems PLC 2001
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