menu-close
search-icon
banner

Tag Archives: Direct Carrier Billing

The changing business model of Assurance

It’s been more than a year since I have even looked at my phone bill, lying in my inbox, marked as read, never to be opened. Bundle of services packaged under a single price, only to change by a small margin when India moved to a single Goods & Services Tax framework.

This is the new world of telecommunication. Select services of your liking, planned well like mine is, you would rarely be looking into your bills, scrutinizing itemized lines and stressing about your usage with  customer care.

In a recent survey of complaints received at the CCTS (Commission for Complaints about Telecom-Television Services, Canada) while incorrect charging complaints increased by 71% Y/Y, complaints on changes to contracts increased by over 200% Y/Y.

This trend is one of the key indicators of the change that is emerging in the space of assurance. The others being the steady and continuous interest in mitigation of risks within the partner ecosystem primarily related to contracts, margin, partner invoices, and inventory.

What’s Changing?

Today with telcos moving into the domain of content providers with offerings of entertainment streaming, current affairs consumption, shopping, and many more options. All these services are bundled into a highly configurable plan that has an “all you can eat” approach as long as it is within the “Fair usage policy” means for a telco subscription, services, on-boarding, customer intelligence, and QoS are the critical assurance parameters from a retail point of view.

However, the change being addressed has a pivotal impact from a B2B perspective from the massive complexity of the partner ecosystem.

partner ecosystem

Today for a partner ecosystem the risk universe includes devices, direct carrier billing, partner credibility, partner & product margins, pay-in & pay-outs, revenue sharing, contract alignment and many more which needs to be monitored & actioned on at near real time.

Furthermore, we are not talking just about revenues but also costs and liabilities. So, the new business model of assurance, which we are referring to as “Business Assurance.”

“Assurance is becoming a source of competitive advantage.”

Business Assurance is not just a methodology but a major transformation in practice & technology. The new Business Assurance solution will need to:

  • Own and maintain the system that measures data quality
  • Own and maintain the business anomaly detection engines
  • Manage & drive business intelligence & insights
  • Measure and anticipate the impact of changes or offerings on customers
  • Monitor the content & partner environment for business feasibility and continuance
  • Gain a comprehensive understanding of revenue & cost breakdown in the organization
  • Help in assuring the “business model” itself, as opposed to a line of business

In short Business Assurance is the new Revenue Assurance. It is not a question of if this transformation will happen but when will it happen? If it hasn’t yet started, it will.

Srikanth Vasudevan

Srikanth is a Senior Consultant in Subex’s Business & Solutions Consulting vertical, focusing on Emerging Markets. He has over 9+ years of experience in consulting and advisory in the telecom industry with key focus on Revenue & Cost Assurance, Information Security, Governance Risk and Compliance. His client portfolio includes Aircel, MTNL, Tata Communications, Videocon, DST and PGi in APAC; STC, MTN, BTC in EMEA; Verizon, XO, Fairpoint and AT&T in NA.

Direct Carrier Billing : A Massive Revenue Opportunity for Telcos

In the last few years, OTT players taking away a sizable chunk of the telco revenues. To deal with this, it’s time the operators harness the potential of new streams of revenue. Direct Carrier billing is one such avenue.

Direct Carrier Billing is a telco driven payment model, for the digital services. Direct Carrier Billing (DCB) opens the possibility of generating a new revenue stream for operators, by leveraging on the existing telco network and the billing relationship with the customers. Direct Carrier Billing, enables telcos to allow its wireless subscribers (both prepaid and postpaid) to purchase goods and services using their handsets. The cost of purchased good and services are added to their monthly phone bill or deducted from the prepaid balance, thereby providing a seamless & secure payment mechanism. This medium enables a very simplified online payment experience with just a click to complete a transaction.

Why is Direct Carrier Billing beneficial for the Telcos?

Juniper Research found that operator revenues derived from carrier billed purchases will rise from USD $2.9 billion in 2017 to USD $9 billion in 2022, an average annual growth of 25%. With growing purchases via DCB, operators enabling their customers to buy all kinds of goods and services using their mobile services subscription will add a new revenue stream for the operators.

  • The operators can take a % of the revenue from the transactions, and their customers don’t have to look for a financial relationship with another company.
  • It is a win-win situation for both the operator and the merchant since it also helps the merchant extend their reach by using the operators existing customer base.
  • The higher conversion rate in DCB transactions will lead to an increase in ARPU for operators.
  • The payment method is extremely simple and secure leading to better user experience and reduction in customer churn.

Leading Technology firms like Google, Apple and Amazon are also investing in building DCB relationships with operators and vendors (like Fortumo, Bango, Boku etc.).  They strongly believe that DCB will allow the unbanked to better engage and participate in the digital economy. The increasing desire to enable payment across Smart TVs, Xbox and IoT devices emerging in the market, widens the opportunity for Direct Carrier Payment.

With most of the transactions completed via DCB, the problem is that maintaining Direct Carrier Billing functionality sometimes fails due to settlement involved between the multiple parties and the frauds in the DCB chain. Subex Direct Carrier Billing Assurance program protects the entire DCB chain providing end to end Risk and Fraud Management.

Stay tuned to know more about Subex Direct Carrier Billing Assurance.

Nirbhika

Nirbhika has 9+ years of experience in the Telecom and the IT industry, which includes working with Infosys and Amdocs. Currently, she is working in the Business Solution & Consulting group for the Emerging Markets.

Get Started with Subex