Billing for Content CC&B Progress and Challenges

Transcription

1 Billing for Content CC&B Progress and Challenges Neil Philpott President, Global Billing Association & Director, Solutions Strategy, Amdocs 1

2 The Wonderful World of Content Why are we interested? What is it? How difficult is it? What is the return on investment (ROI)? Does it really increase average revenue per unit (ARPU)? 2

3 Why Content? RPM: revenue/minute in NA $0.20 $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 $0.00 1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 CPGA weigthed average $400 $390 $380 $370 $360 $350 $340 $330 $320 $310 1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3

4 What is Content? a. Variable data transfer (low speed) www access & corporate LAN access (wireless VPN) remote workforce data exchange b. Subscriber-driven formatted data access (pull-information) (low speed) air & rail timetables & departure information stock reports latest scores traffic reports c. Provider-driven formatted data supply (push-information) (medium speed) daily news and information updates regularly - e.g. daily or weekly - supplied news and information d. Value-added content, customer configurable content (high speed) music, video, multimedia services web sites offering goods or services for sale over the net 4

5 What is Billing For Content? Subscriber The Telecom: Transporter and BILLER of Value Voice People Data Content Billing Billing for for Content is is the the billing billing based based upon upon the the direct direct relative value value of of the the content rather rather than than utilization of of communications bandwidth 5 Content a. Variable data transfer (low speed) www access & corporate LAN access (wireless VPN) remote workforce data exchange b. Subscriber-driven formatted data access (pull-information) (low speed) air & rail timetables & departure information stock reports latest scores traffic reports c. Provider-driven formatted data supply (push-information) (medium speed) daily news and information updates regularly - e.g. daily or weekly - supplied news and information d. Value-added content, customer configurable content (high speed) music, video, multimedia services web sites offering goods or services for sale over the net

6 Categories of Content Services Interaction Model; e.g. push/pull e-delivery of stock quotes (transport is negligible) Transaction Model; e.g. purchase of cinema e-ticket; (transport is negligible) Streaming Model; e.g. watching CNN, (transport is substantial) 6

7 New processes Order Management Translation of customer needs into product/service configuration Risk- Management Ensuring quality of customer base through credit check, customer monitoring & fraud prevention Customer Retention/recovery Building and managing a learning relationship at the individual customer level Customer Service Integrated management of the interfaces between customers & internal processes Billing & Collections Rating & Billing of resources used by each customer followed by collection of receivables 7 Source: Veba Telekom

8 Content & VAS Operator NTT DoCoMo AT&T Wireless Hutchison 3G ( 3 ) Content Providers THQ & Fox (Simpsons), Tomb Raider, UEFA,Google Disney, CNN, Hallmark, MTV... Wall Street Journal, ABC News, Sony, LA Times... Reuters, BBC, FA Premier League... Disney, Sony, Universal, MTV... Disney, Sony, AOL, Google SBC-Yahoo! Verizon-MSN BellSouth Qwest-Sony Customized Yahoo! broadband Portal for SBC-Yahoo subscribers Customized MSN broadband Portal for Verizon-MSN subscribers Customized version of Movielink (VOD service) provide gaming and entertainment DSL customers MovieBeam, direct video on demand service i-tunes downloadable MP3 for $0.99 per song

9 Content & VAS ÖBB MOBILE TICKET AB-Bahnhof: [wien] AN-Bahnhof: [linz] Name: [muehan] Anzahl Erwachsene: [1] [Vollpreis] 9

10 Challenges & Opportunities Quality of Service Customer Management Content Identification Pre-paid / Post-paid Convergence M-payments Content Roaming Digital Rights Management Partner Relationship Management Context-sensitive Pricing 10

11 Quality of Service Network Quality Packet delay, Jitter, Throughput, Packet loss, Availability Service Quality Streaming service, Push services, Commerce Customer Experience Content server Own network 3 rd party networks User device 11

12 Customer Management Customer Intimacy Perceived Value Range of Personal Context Time, Device, Location, MyPreferences, Behavior Profile, Payment history, Balance $ Super Fan Segment Bundles $ voice text images audio video multimedia commerce Services Transport $ $ 12

13 Content Identification Current pricing includes: Megabytes, packets, number of WAP pages, time, flat rate Pricing must become more intuitive but identifying content is an issue Walled gardens Packet sniffing 13

14 Pre-paid / Post-paid Convergence Payment options: Pay on bill Prepaid credit card debit card 14

15 M-Payments Customers need easy to use payment methods Billing system needs to interface with gateway that mediates between user and merchant Need for standards, such as PayCircle 15

16 Content Roaming Two current models: ISP roaming via visited network HPLMN roaming via home network (favoured - good security, tracks customers) Emergence of GPRS Roaming Exchange (GRX) Provides IP connectivity, security, quality of service 16

17 Content Roaming GRX Backbone Home Network MSC/SGSN GGSN / PDSN GGSN / PDSN Visited Network MSC/SGSN IP/Internet Data exchange direct, or via clearinghouse GSM TAP3, and CAMEL phase 3 (volume/duration) The future will need to accommodate: LBS, location adverts, home language/currency 17

18 Digital Rights Management Controls access to content against a set of rules Protects rights of the content owner Decision to permit / disallow access may be based on a wide range of parameters Credit limit, Age, Subscriptions, Maximum number of accesses allowed, Etc Execution of rights management requires agreement and trust between content provider and service provider 18

19 Partner Relationship Management Partner Service Processes Partner Info EDR Content Provider Partner Billing Supplier/Sales Partner Partner Relationship Management Interconnect Provider RM Supplier RM Provisioning Network EDR Retail Billing CRM Provisioning Info Service Order Customer 19

20 Context-sensitive Pricing Traditional billing Time, Volume, Distance IP Billing IP address, URL, device ID New: Billing for Context At home, At work, Different locations (also split billing) Emergence of context based services location based, or telematics a car s specific location vs brand of hotel, gas stations 20

21 Conclusion The hard parts are Understanding what the customer wants when they don t know themselves Aligning the whole company to the new business Source: 2003 BCE Annual Report 21

22 Thank you! Neil Philpott President Global Billing Association Neil Philpott Director Solutions Strategy Amdocs 22

23 About the GBA 23 globalbilling.org

24 The Global Billing Association (GBA) delivers Knowledge and Networking to the Billing community, world wide 24

25 Company Structure a non profit making company registered in the UK limited by Guarantee has no shares exists purely for the benefit of its members any surplus is re-invested (Web site, events etc) policy decided by Executive Council 25

26 Executive Council 50/50 between operators and vendors Sets the direction and policy for the GBA Members - 75% operators, 25% vendors/sis Now open for business in Asia Pacific, Australasia, North America and Europe 26

27 Activities Process benchmarking for operators (4th year) Monthly newsletter for members Web site and archive of notes and newsletters Complimentary workshops Regulatory channel Promote billing issues to other industry groups Knowledge Integration 27

28 Knowledge Integration Service Provider surveys issue for discussion: - e-billing -regulation - m-commerce -etc regional webinars & workshops SIG meetings GBA statement, position paper, report Members Knowledge Updates -electronic Reference Manual 28 External Association Briefings CXO Briefings Marketing/promotion

29 Knowledge Integration focuses on member s issues allows regional discussions allows easy exchange of ideas/issues, globally encourages effective communication with wider industry member driven 29

30 GBA themes for 2004 new billing micro billing, billing for content, value chain/partner revenue management benchmarking, ARPU/AMPU, other industries wild card topics member driven workshops, range of subjects 30

31 Contacts Alex Leslie Neil Philpott John van t Schip David Smith Mindy Chohan CEO President Chairman Director Communications Manager alex@globalbilling.org neil@globalbilling.org john@globalbilling.org david@globalbilling.org mindy@globalbilling.org 31