At last: a comprehensive framework for Prepaid-postpaid convergence

Welcome to the first 2009 edition of Evolve. Prepaid-postpaid convergence has been rumbling on as an issue for years and we think the reason it's not been adequately addressed up to now has much to do with the lack of a comprehensive, high level applications framework. In other words, where the results of convergence projects have been less than brilliant it's often been because operators and software developers have been trying to knit together the postpaid and prepaid software stacks instead of stepping back and knitting together the business processes first.

With the development of a layered BSS/OSS architecture, as pursued by the TM Forum with its Telecoms Application Map (TAM) and other initiatives, comes the chance to address this crucial convergence in a comprehensive way.

For the first time we're being offered a clear vision of a ‘horizontal’ architecture complete with the terminology and functional mapping required to express the process relationships. The next step is for operators and vendors to get on and use these frameworks to build real, next generation layered applications that will get new offers and services to market quickly and flexibly.

Cerillion's contribution has been to develop the Total Convergence Architecture. This framework, launched in January, is underpinned by the TM Forum's TAM and in this issue we really get to grips with how and why it should be implemented - we're even offering a free Total Convergence Architecture White Paper for you to download.

Also, if you're coming to the Mobile World Congress in Barcelona (16th - 19th February) we'd love to tell you more about it there and this issue has details on how to meet up with the Cerillion team for meetings and demos…and perhaps a spot of Tapas too.

Our Reader Polls are becoming a really popular feature of Evolve and a great way of communicating with the industry. Our last poll clearly struck a nerve - we asked you about 'regulators' and you told us in no uncertain terms what you thought of them.

This time out however, we're asking you to respond to our Annual BSS/OSS Industry Survey. Fill it in, tell us who you are and you will go into the draw to win an iPod Touch. The results of the BSS/OSS Industry Survey will feature in our next issue of Evolve in April.

See you in Barcelona…

Total Convergence

Prepaid-postpaid convergence has been a talking point in telecoms circles for many years. However, take-up among operators has been slow, primarily due to the lack of a coherent infrastructure or methodology that can support these kinds of implementation.

This lack of real progress in the industry has led us to exploring new ways to address the challenge. With the launch of our new Total Convergence Architecture (TCA) we have created a blueprint which can be used by telecom operators to decipher the key requirements of converging their prepaid and postpaid environments, and ensure that clear benefits are delivered at all stages in the process.

TCA uses an industry standard framework to help operators identify what they want to achieve with convergence and provides a structure to accomplish these goals. Critically, it is a flexible model which recognises that every operator has different issues to address and a one-size-fits-all approach simply cannot work.

From Concept to Reality

The concept of prepaid-postpaid convergence is nothing new. The billing community has been discussing it for the best part of a decade and the inefficiencies involved in maintaining separate system stacks for prepaid and postpaid subscribers are widely accepted.

Unfortunately, in practical terms, the desired convergence of these systems has been dogged by years of hype and false starts – primarily due to the absence of a coherent infrastructure or methodology on which solutions could be built.

As the industry moves slowly but surely towards NGN and IMS, a fundamental change is happening to back office systems in order to support the next generation of telecoms services. The clear separation of network transport from applications and services is leading to a layered model with common functions shared by multiple services.

Telecom Application Map

Total Convergence Architecture (TCA)

To understand how this new 'horizontal' architecture can be applied to prepaid-postpaid convergence, BSS and OSS applications need to be aligned using a common set of terminology and functional mapping. The TM Forum Telecom Application Map (TAM) provides an ideal functional model within which the challenges of prepaid-postpaid convergence can be clearly expressed.

Using the TAM, a new model can be derived that describes the functional building blocks required to deliver a complete prepaid-postpaid convergent solution. This new framework – Total Convergence Architecture (TCA) – is a blueprint that Cerillion has developed to enable operators to deal with the challenges involved in achieving total convergence.

Each layer in this architectural framework has a set of functions which need to be addressed in order to achieve convergence. However the keynote is flexibility.

Operators do not need to implement the complete model to achieve their required level of convergence. Every business situation is different and TCA provides a framework within which a variety of approaches can be followed.

Across the Different Levels

Convergence at the market/sales level can be achieved relatively easily from an external viewpoint. It is possible to promote broadly the same set of products and services to both prepaid and postpaid markets without actually converging the BSS and OSS.

However this requires replication of products, tariffs, discounts and rating rules between system stacks, which can slow time-to-market as configuration and testing effort is duplicated. It will also restrict flexibility of the product and services that can be offered by limiting to the 'lowest common denominator' so only features or tariff models supported on both systems can be offered to the market.

Convergence at the product level can deliver benefits in terms of how products and services are packaged. However it is also the hardest to achieve in isolation, as it requires the underlying offline and online rating engines to be decoupled from how products and tariffs are defined.

At the customer level, moving customer care and self-care onto a unified platform enables a common level of service to be delivered to all customers, irrespective of how they choose to pay. The main beneficiary is the traditional prepaid customer base, who can be offered prepaid usage statements and access to the full range of call centre services. However it is also at this level that new combined prepaid and postpaid propositions can be offered, for example the frequently cited 'family accounts', where parents are postpaid and children prepaid within a single account structure.

Convergence at the service level means bringing together offline and online rating engines and providing a single balance management platform to support all services. This provides the biggest technical challenge in convergence, but also the most significant benefits to traditional 'postpaid' customers.

New 'spending control' capabilities enable customers to manage their own service-level spend according to their desired budget. Online authorisation and advice of charge offers fully transparent pricing, reducing the risk of overspend or 'bill shock'

Service level convergence also enables operators to offer hybrid services that sometimes behave according to postpaid rules and sometimes in prepaid mode. For example, a voice service could be defined as 'postpaid' charged to a business account during office hours and 'prepaid' from a personal wallet out of office hours.

Convergence at the resource level brings together mediation and session control functions into a convergent layer. The key benefits are in improved time-to-market and revenue assurance.

Positive Prospects

Whatever choices are taken in these areas, with the launch of TCA, prospects for the practical implementations of prepaid-postpaid convergent architectures have become brighter. The utopia of fully convergent billing remains in the future for many, but with technologies such as IMS already incorporating online/offline charging into the next generation architectures, the opportunity is there for operators to rationalise their systems and offer convergent services to customers.

The new TCA framework delivers maximum value from an operator's existing investments while providing a path to a full prepaid-postpaid convergent solution. It takes into account that the challenges are not simply in online rating and balance management, but must address the complete lifecycle of customers and products.

It also considers that every operator may not implement convergence in the same way, or at the same time, so there will always be exceptions which must be catered for without resorting to the addition of new system 'silos' to support a particular customer or service segment.

Operators also need to recognise that prepaid-postpaid convergence is not just a one-off project that can be completed and then forgotten about. It must become a way of working and a culture by which operators conduct their whole businesses. Only when this mindset is achieved will the true value of convergence be delivered.

Dominic Smith
Dominic.Smith@cerillion.com

Find out more: Request your copy of Cerillion's Total Convergence Architecture White Paper now!

Cerillion Launches Total Convergence Architecture to Make Prepaid-Postpaid Convergence a Reality

London, 29th January 2009 – Convergent billing specialist, Cerillion Technologies, has unveiled its Total Convergence Architecture (TCA), a new flexible model for telecoms operators based on a highly-respected industry standard framework – the TM Forum's Telecom Application Map (TAM). Cerillion's TCA is designed to help operators move to the next generation of customer management by addressing the challenges of prepaid-postpaid convergence that until now have remained an unobtainable goal for most telecoms providers.

Dominic Smith, marketing director, Cerillion Technologies, says: "Driven by the necessity to develop and sustain their customer base, grow average revenue per user (ARPU) and lower capex and opex, operators have reached the critical point where they must embrace the convergence of their prepaid and postpaid platforms."

"Until now, this migration has been held back by the lack of a coherent infrastructure or methodology," he adds. "The development and launch of TCA helps remove these barriers, giving operators the platform they need to put true convergence into practice."

Cerillion's TCA has the flexibility to allow operators to pick and mix components from both billing vendors and network suppliers, utilising standards-based interfaces such as Diameter to fulfil the integration. It also supports phased deployment and upgrades, with real benefits being delivered at each stage on the path to total convergence.

With TCA, Cerillion is helping operators to achieve business improvement at all layers of the Telecom Application Map, covering sales and marketing, product management, customer management, service management and resource management.

"Previous convergence models have been largely geared to a one-size-fits-all approach," says Louis Hall, chief executive officer, Cerillion Technologies. "We believe that our approach is completely different."

"Our flexible TCA framework reflects the fact that each operator faces a different set of challenges specific to their own market," he adds. "With this in mind, we have focused on enabling operators to deploy convergence in a way which suits their individual business rather than one dictated by the vendor."

Visit Cerillion at the Mobile World Congress 2009

Cerillion will once again be taking part at the Mobile World Congress in Barcelona, 16th – 19th February. Visit us in Hall 2, Stand 2D65 to find out how our unique bundled component product suite can help your business to flourish. The Cerillion team will be present throughout the week, including our CEO, Louis Hall, providing an ideal opportunity for meetings and product demonstrations.

Book an Appointment

On our stand we'll be exhibiting the latest generation of our innovative pre-integrated BSS/OSS solutions, including Revenue Manager, CRM Plus, Service Manager, Mediator Plus and Interconnect Manager. Feel free to pop by our booth at your convenience or click here to pre-book an appointment for an in-depth demonstration.

The Cerillion Tapas Bar

After a long day at the conference and exhibition, what better way to relax than with some traditional food and drinks at our renowned Tapas bar? Situated in the heart of Barcelona, close to the famous Ramblas and near to the Picasso Museum, Txirimiri is the ideal spot to chill out in the evening. Why not join the Cerillion team for sangria and Tapas on Tuesday 17th and Wednesday 18th February, 19:00 until late. Don't forget to pick up your ticket at our booth in Hall 2, Stand 2D65!