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Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager [email protected] Agenda The 6 degrees influencing the Billing Organization and Infrastructure Summary 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt FMC in Swisscom Context 2 CEO Group Communications Group Human Resources Group Operations & Related Business Billag AG Swisscom Broadcast AG Swisscom Mobile AG Swisscom Fixnet AG Bluewin AG Swisscom Immobilien AG Cablex AG Directorie s AG SICAP AG Group Client Management Group Finance & Controlling Strategy & Group Steering Swisscom Innovations Swisscom IT Services AG Swisscom Eurospot AG Swisscom Solutions AG Group Headquarters Group Companies 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Swisscom is the Swiss incumbent having Fixed and Mobile Units 3 Within Swisscom Fixnet the different business areas generally act independently: – Retail Business (sale of network services and products) – Swisscom Fixnet Wholesale (sale of network achievement) – Customer Care – Operator Services (information services) – Payphone Services (public call boxes) – Cards (Taxcards, Prepaid Cards) – Bluewin (sale of Internet services and products) Swisscom Fixnet in figures Net turnover 2004 CHF 5.715 billion (consolidated) Private customers 2.9 million Business customers 300'000 ADSL subscribers 802'000 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Swisscom Fixnet 4 Fix and Mobile usage in different countries (in %) “Mobile-only” users in Switzerland : 5,5 % 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt In addition to the decline of prices, fierce competition from Cable Operators, Fixnet is observing a new Atrend shift in customers’ bevaviour can be perceived 5 Source: Lars Finger, Swisscom Mobile, based on a Nokia customers survey Oct 2004 Switzerland's leading provider in the Swiss mobile communications market with a 66% market share 3.8 Mio NATEL® customers 25% of Swisscom Mobile's shares are held by the Britishbased Vodafone Group Plc and the other 75% by Swisscom Ltd. Swisscom Mobile Customers 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Swisscom Mobile 6 Prepaid / post-paid customers (in Mio) 2/3 of the mobile communications could be conveyed through other communication mean (Fix line, VoIP…) 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt However Mobile Operators are also threatened by new technologies 7 Swisscom launched the unique Unlimited Service in September 2004 Swisscom offers 21 TV channels over UMTS via Vodafone Live! since September 2005 Swisscom will launch Bluewin TV in 2006 – Acquisition of strategic shareholding in leading Swiss content provider – Re-integration of the ISP, Bluewin, within Fixnet Swisscom is a founding member of the FMCA 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Swisscom is then investigating how a better future could be made out of convergence FMCA 8 Convergence is the digitized takeover of communications and information in a network and device agnostic manner producing new services Network Convergence Voice and Data Circuit-Packet Service Convergence Fixed-Mobile, One Bill Unified Channel, Bundled Services Device Convergence 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Our definition of Fixed Mobile Convergence 9 Service Device Still to come!! Network 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt In today’s implementations the degrees of convergence are not respected in the same way 10 IMS offers the technology allowing the transformation of a vertically structured company to a horizontally one Vertical, Integrated Horizontal, Disaggregated Community Applications IPTV Internet Wireless Long distance Local Content/Applications Communication Services Devices IP Network 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt IMS could help Swisscom to face its challenges 11 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt A simplified overview of IMS – IMS is not just about IP… 12 New AAA mechanisms * Diameter New concept of a session * ICID/GCID * Bearer 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt IMS challenges the Billing Architecture and Processes on many levels New charging paradigm * Real-time everywhere? Technology View IP Multimedia Subsystem (IMS) Business View Content FMC Multiparty business models 13 Diameter Base Protocol can be enhanced for specific purpose (e.g. Diameter SIP, Diameter Credit Control) The protocol supports Real-Time requirement (Ro interface) Diameter’s command (AVP) can be made vendor specific. More than 500 of them already exists… (e.g. Offline: Accounting Request/Answer; Online: Credit Control Request/Answer) 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Diameter is a robust and flexible AAA protocol 14 However can your organization or your infrastructure handle such a flexibility? Diameters requires a high expertise Diameter based services are not yet widely developed in Telco’s environments Questions are then: – Does your mediation platform provide the necessary plugins? Does it allow you to process different CDR formats in a timely efficient manner? – Does your charging platform manage the Ro interface? 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Diameter is a young standard (specified in 2001) 15 IMS revolutions the concept of a call session The correlation of charging information for an IMS session is based on the use of IMS Charging Identifiers (ICID) The first IMS network entity within the SIP signalling path is responsible for assigning an ICID ICID then be passed along the whole SIP signalling path in an end-to-end manner For the charging correlation between the PS domain and the IMS, one or more GPRS Charging IDs (GCID), which identify the PDP contexts of the session, are passed from the PS domain to the IMS (be transferred from the GGSN to the P-CSCF) The GCIDs are passed by the P-CSCF to the S-CSCF and the AS using SIP signalling. Along with the ICID, the S-CSCF passes the GCIDs to online and offline charging functions 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt A key aspect of IMS is that it allows service interaction in a single customer session. 16 However on certain details the specifications are not always precise. Therefore it is not sure that the ICID/GCID features are well implemented. Should this be a task for the mediation platform? Furthermore even if QoS is well addressed by IMS. What happens when the customer roams between different bearers? Can the QoS be guaranteed when a customer is moving from a WLAN network to EDGE while watching a video stream? Is this our customer’s issue or ours? If ours, can we offer SLA-based billing? 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt IMS revolutions the concept of a call session 17 IMS also defines charging mechanisms: Offline & Online Charging Offline Online Billing System HSS ISC Ro P-CSCF S-CSCF I-CSCF Event Session Charging Charging SIP Application Servers Bi HSS Rf Rating Correlation Function Bearer Charging Account CCF P-CSCF S-CSCF I-CSCF CGF GGSN MRF BGFC Charging Gateway Online Charging Gateway Ga SGSN CAP MRF GGSN Online: Charging information can affect in real-time the service rendered SGSN BGFC 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Billing System SIP Application Servers 18 The traditional boundary between prepaid and postaid should vanish! Prepaid Postpaid Customized charging Online Balance Management Itemized bills Specification of thresholds per account and/or per service Same service availability Differentiated alert management Enhance sponsoring capabilities Overall discounts 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Our Marketing department favors the online approach 19 However the commitment for a budget is hard to have and the technical departments are still fighting for which approach to choose 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt IT Department IT approach IN approach Network Department 20 IMS is designed to easily provide all sorts of content: Video streams; Gaming; Instant messaging; white board etc. These topics are sold by the vendors since many years. But how many Business Cases allowed to replace/update telco’s legacy environments? Do your mediation platform, your rating engine allow a quick release of new content? – Configuration/programming of new billable formats (e.g. lists) – Flexible rating schemes – New layout – Flexible testing environment? 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Can your infrastructure easily handle new contents? 21 IMS is an open platform allowing Third Party Content to be integrated Big players are already here voice, video IM and basic voice Email Calender, address book Address book Email Web hosting Web hosting Photo album Photo album,Blogging Blogging E-commerse, Job hunting E-commerse Games, news, stocks Games Video streaming 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Once IMS will be more widely implemented, partnership will provide key market differentiator. 22 However how the operators prepared to handle these partnerships? Can a Business Case be based on today’s revenue share agreements? How well do you treat your partner? – Are you transparent with him? Do you provide a real time assessment of your partners’ revenues? – How well do you implement your revenue share? Is it based on statistics or on real usage? – Are you willing to share the risks? Are you considering Digital Right Management? Are Open Mobile Alliance DRM 1.0/2.0 the right solutions? The SIMPAY initiative has been dismissed. Will we keep on imposing walled garden? Will M.I.A. create apostles? 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Operators are still enjoying a dominant position 23 FMC doesn’t always mean one Bill. However the examples are getting more and more numerous We have to differentiate between two cases: an offline model and an online one 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Fixed Mobile Convergence is probably the main driver behind IMS 24 ? 1. Consolidation of print files Billing 2. Adjunct Rater Rating Mediation IP Multimedia Subsystem (IMS) Fixed Mobile Internet 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt In the offline model the point of convergence is key Some circuit Switched NEs might still be there… 25 These cases proved to be quickly doable and relatively cheap – To find a common customer id – To make sure that the Account Receivable files are right – To give a consolidated view to customer care However Telia Sonera proved that this was feasible in less than 6 months 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt The main issues with these scenarios are: 26 An online FMC architecture might prove more difficult to build Prepaid Postpaid Customer Prepaid Postpaid Front Office Systems & Processes Fixed Back Office Systems & Processes Internal Convergence Front Office Systems & Processes Mobile Back Office Systems & Processes Customer 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Customer Prepaid Postpaid Front Office Systems & Processes Data / Data / Content Content internet Back Office Systems & Processes Mutual Integration +2-3Y 27 Reload Payment Collection Bills & Invoices IN Node Rating Balance Management Cust./ Prod DB Cust./ Prod DB Rating IP Mediation Service Logic/Control Mediation (Service Logic) Real-Time Data control SS7 INAP, CAMEL, MAP Real-Time Event control Real-Time WLAN control CDR XDR HLR MSC GGSN PWLAN VF live! VAS i-Server 3rd Pty. Server 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt A typical environment nowadays 28 Reload Balance Management Cust./ Prod DB Invoicing Rating Payment Collection Middleware (EAI; SOA; PARLAY …) Overall Session Management/Control Mediation (Service Logic) IN Node Real-Time Data control Service Logic/Control Real-Time Event control Real-Time WLAN control XDR SS7 INAP, CAMEL, MAP HLR MSC GGSN PWLAN VF live! VAS i-Server 3rd Pty. Server 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Afterwards an overall Session Control Layer should provide the true convergence 29 Reload Balance Management Cust./ Prod DB Rating Invoicing Payment Collection Middleware (EAI; SOA; PARLAY …) IP Mediation Mediation (Service Logic) IN Node Real-Time Data control Service Logic/Control Real-Time Event control Real-Time WLAN control XDR SS7 INAP, CAMEL, MAP HLR MSC GGSN PWLAN VF live! VAS i-Server 3rd Pty. Server 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt We specialise the environments by factorising common functionalities 30 Reload Balance Management Invoicing Rating Payment Collection HSS Cust./ Prod DB Middleware (EAI; SOA; PARLAY …) Overall Session Management/Control IN Node Service Logic/Control Real-Time Real-Time session charging/Bearer charging Data control Event control HSS SS7 INAP, CAMEL, MAP Mediation (Service Logic) CSCF/ event charging/ Real-Time WLAN control XDR HLR MSC GGSN PWLAN VF live! VAS i-Server 3rd Pty. Server 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt At the end of the process a natural IMS implementation should have taken place 31 Convergent Billing Convergent Rating & Discounting Rating & Discounting AAA SCM BM Rating & Discounting AAA SCM Fixed Rating & Discounting BM AAA SCM OSA Parlay, Jainslee, Web Services, XML, … OSA Parlay, Jainslee, Web Services, XML, … Mobile 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Pre- & postpaid convergence would be then an enabler of a “mutual integration” approach Internet BM 32 IMS offers tremendous opportunities to Telecom Operators However it might challenge your Billing Organization & Infrastructure – Know-how should be assessed – Real-time requirement should be assessed. In this latter case a thorough Business Case should be conducted: – Which approach should be chosen? – OPEX should particularly be proven 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt Conclusions 33 Thanks for your attention... Any Question? – about Swisscom: visit www.swisscom.com – e-mail to: [email protected] – Swisscom Innovations, INO-SSM, Ostermundigenstrasse 93, 3050 Bern, Switzerland Phone: +41 79 278 97 73 28th of November 2005, David Watrin, IQPC, Intelligent Next Generation Billing, Frankfurt For additional information 34