GPRS Billing in Germany Table of Contents Case Study T-M obil - - - PDF document

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• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 1

Juerg Haseloff - 10 December, 1999

Case Study GPRS Billing in Germany

• 23. DECUS Symposium

28.-30. März 2000 Bonn, Deutschland Jürg Haseloff, Leiter IS Billing DeTeMobil Deutsche Telekom MobilNet GmbH, Bonn

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 2

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Table of Contents

T-M obil - Com munication in a mobile world The German market for data and value added services Pricing for mobile data Considerations to be m ade Billing for transportation services Billing for Contents IP Billing and Paym ent Billing im plem entation at T-Mobil

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 3

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

T-Mobil - Communication in a mobile world Our Company - Our Market

100% subsidiary of Deutsche Telekom AG Established on 1st July 1993 Around 7.000 em ployees M ore than DM 7 billion turnover in 1998 M ore than 9 m illion GSM custom ers (End of 1999) Europe‘s fifth largest supplier of m obile phone services

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 4

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

T-Mobil - Communication in a mobile world Our Company - Our Market

Holdings in 12 m obile phone operators around the world (including Telekom shareholdings) Key business: T-D1- the digital GSM -900 N etwork and T-C -Tel - the analog network (until end of 2000) T-D 1 Com pany for System Solutions

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 5

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

German market data services

• GSM bearer services have

been m arketed since 1994

• little penetration of dedicated

(single numbering) CSD

• growing portion of occasional

users (multi numbering)

• SMS is gaining a growing

market share from GSM voice services very fast

multi numbering CSD < 5% SMS User (MO/MT) about 50% Voice only single numbering CSD Fax

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 6

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

What is driving the German market for data?

Lim itations of dedicated data services (e.g. Modacom ) Low coverage Absence of roaming service total cost of ownership Poor GSM CSD performance Good acceptance of SMS and related services (5-20% growth per m onth without significant m arketing effort) High GSM penetration rate and terminal availability Inherent lim itations concerning eMail and graphic content Explosive growth of Internet Services and their penetration First applications using SAT and W AP

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• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 7

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Evolution of T-D1 value added services on SMS

Focus

Consumer Corporate

1998 1999 2000 1996 1995 1997 SMS as a GSM feature Application enhancements

...

SMS delivery notification WAP integration

Interactive content Mobile Banking

97 T-D1 News Offerings SMS for Prepaid Telematics and Logistics Software D1- Infomanager e-Mail over SMS T9 SW/Hand- set integration First content push services Voice Box Notification Page Mobil Software SMS MO + MT SMS eMail Notification

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 8

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Market development

In 2000 the poor availability of term inals will limit m arket growth From 2001 all new handsets will support the service and growth in users and traffic will accelerate The developm ent of applications, terminal functionality and service capabilities will have to stim ulate m arket grow th through user acceptance Special contents for the m obile market has to be developed in

• rder to stimulate usage and to evaluate the m arket for future

broadband m obile services like UM TS

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 9

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Pricing - changing the time/distance paradigm

Custom ers are currently used to pay for telecomm unication services according to distance, duration and tim e of day „Alw ays on“ requires a non-duration based pricing m odel, e.g. based on the application context Actual usage instead of connection duration creates value for the customer The contents transported over his network usualy is transparent for the network operator Content will create growing revenues compared to m ere transportation services

Volume and contents will become the future basic parameters for data service pricing

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 10

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Considerations to be made when implementing billing for data services:

Traditional network operators these days frequently discuss getting involved in additional stages in the value chain in order to prepare for new business m odels and roles coming up with UM TS in the future like: Content providing IP Billing / Payment Billing for third party services becom es increasingly im portant to attract high usage for mobile data Transparency of costs for every stage in the value chain w ill becom e increasingly im portant

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 11

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Considerations...

Quality of Service System solutions business for top corporate custom ers (Intranet Applications) Prepaid service success and fixed m obile convergence International Roam ing Balancing monolithical integration vs. unm anageable redundancy take a „distributed“ approach

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 12

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Billing for the provision of transport services

Business m odels direct sales resale (service provider) Interoperator Subscription adm inistration Volume/time rating of usage events Calculation of one-tim e and recurring charges Billing and collections

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• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 13

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Billing for Contents

Business m odels Retail and wholesale billing for self-produced contents Provide contents for resale through Service Providers Resale of contents provided by third parties Provide billing and incollect services for third parties Administration of subscriptions (create, modify, delete, barring) Provide m easurem ents for settlem ents with general access content service providers

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 14

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

IP Billing and Payment

Financial clearing for products delivered and services performed by third parties Establish a secure payment transaction that undoubtedly authenticates the customer and gives dealer instant access to the paym ent (Re)use already established creditworthiness-checking routines Calculation of com missions Billing and collection via the telecom m unications bill of the custom er

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 15

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Billing Implementation at T-Mobil

GPRS shall be im plem ented just in the middle of the ongoing transition from the legacy adm inistration and billing system DPPS/BATS to the new CCBS „C arm en“ Tw o System s have to be adopted to GPRS requirem ents, but custom er segm entation on both systems should help (consumer m arket/ prepaid on Carmen and corporate m arket/service provider m arket on DPPS) Volume based rating creates fundam ental changes to data formats and algorithms in rating and billing of the legacy system Changes to order processing appear to be neglectable New network interfaces have to be im plemented in subscriber and billing m ediation devices

• 23. DECUS Symposium, Bonn 28.-30. März 2000

Slide 16

Juerg Haseloff - 10 December, 1999

GPRS Billing in Germany

Suscriber Admin.

DPPS

Rating and Billing Company and Service Provider Segments New order processing

Carmen

Subscriber Management Rating and Billing XTRA (prepaid) and Telly (consumer) Segments BSI Service Provider CCBS

Cost Check ELMO

EDIFACT Invoice

GPRS Billing Implementation Environment 2000