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
Didier.Lacroix@intec-telecom-systems.com
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Out of date rates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