Telecom Billing Tutorial: System Architecture and Billing Process

Telecom billing encompasses several key processes:

• Collecting subscriber usage data for subscribed services.
• Aggregating usage data over a fixed time period.
• Applying rental charges and generating invoices.
• Managing payments and recording payment history.

Typical services offered by telecom operators include voice, data, SMS, MMS, fax, video, and VoIP. These services rely on various electronic mediums for transmission, such as copper wire, wireless, fiber optics, microwave, and satellite.

Popular international telecom operators include Verizon, Etisalat, Airtel, and Vodafone. In essence, telecom billing refers to the end-to-end process of generating, managing, and delivering invoices to customers for their telecom network services. Telecom companies, including landline operators, mobile operators, and ISPs, utilize billing systems to accurately charge customers for subscribed services, typically on a fixed monthly rental basis or based on usage.

Let’s delve into the telecom billing system, exploring its architecture and processes.

Telecom Billing Types

Telecom billing is commonly categorized into two types: postpaid and prepaid.

Postpaid Billing: Subscribers use services throughout the month, after which the operator generates and sends invoices electronically or manually. Subscribers then make payments upon receiving the invoices.

Prepaid Billing: Subscribers pay in advance for services. Once payment is received, the operator activates the services. Prepaid billing involves real-time payments and typically doesn’t involve generating bills or invoices. This is the primary distinction between prepaid and postpaid billing.

Telecom Billing System Architecture

Figure 1: Basic Telecom Billing System Architecture

As depicted in Figure 1, the telecom billing system architecture is broadly divided into services, accounts, ratings, invoices, and payments.

1. Order Placement & Account Creation: When a customer places an order, they are assigned a unique ID linked to their account.
2. Account Details: The account is registered with the type of service ordered and includes contact information, profile details, account type (postpaid/prepaid), payment method, login information, etc.
3. Service Association: This account is then linked to the specific services the customer has ordered.
4. Usage Tracking: Billing is based on the customer’s usage of the subscribed services.
5. Rating: The rating component converts usage records from one form to another (e.g., converting usage units to equivalent costs).
6. Invoicing and Payments: The invoicing and payment processes handle invoice generation based on various factors. Once generated, invoices are dispatched to subscribers.

Billing Software Developers

Here are some prominent billing software developers and vendors worldwide:

• Ericsson
• Nokia Siemens Networks
• Amdocs
• Convergys corporation
• Cadebill
• Huawei
• Oracle Corporation
• Intec Telecom Systems
• Advantage 360 Software
• Trigital Technologies
• Elitecore Technologies
• Redknee

Reference: Top Billing Software product vendors

Telecom billing is a critical function for telecom operators, directly influencing revenue generation and customer satisfaction. It requires sophisticated system architectures and processes to manage the complexities of modern telecommunication services and the diverse needs of customers.