By James Barton
November 27, 2014
The commoditisation of services afforded by 4G requires a different approach to billing, according to the CEO of Lognet Billing, Kirill Rechter.
There are primarily two types of communications service providers in emerging markets – existing players and new entrants. Existing players are large, well-established and often former monopolies, while new entrants are significantly smaller and typically offer an innovative set of new services or focus on a particular target market. The new players are quick to offer new services and even though they lack the financial strength and infrastructure as the existing players, they are creating competitive alternatives previously unseen by the established players in emerging markets.
As new technologies and 4G networks are rolled out across the world, the economics of the telecom space are being transformed significantly, especially in emerging markets. Traditional telecommunications services, specifically voice, data and messaging services, are becoming increasingly commoditised. This actually is a global trend, although a growing issue for both existing and new service providers in emerging markets.
With time the differences between existing and new players are becoming marginalized and service providers on both sides of the equation in emerging markets can leverage their billing operations and business processes as competitive advantages.
The traditional approach to billing involves the use of separate systems to support different services with little to no connection or coordination among business processes. This kind of billing process is expensive to operate and cumbersome to maintain. Operational decisions are often tactical, based on the functional limitations of the billing and other BSS systems in place rather than strategically servicing the long term benefits of the company. These types of billing operations are typical of existing players in emerging markets and are often a burden to their growth, as well as the source of market opportunities for new entrants.
Modern Billing, on the other hand, is an innovative approach to billing operations promoted by LogNet Systems. Modern Billing allows service providers to turn service delivery, customer experience management and billing into competitive advantages.
According to LogNet Systems’ approach, Modern Billing has four main considerations –
- Strategic – Modern Billing allows a service provider to deliver on the strategic decisions taken at the executive and board level, such as to grow the customer base, improve profitability, streamline operations, reduce costs, expand services, and more.
- Holistic – Modern Billing allows a service provider to define, configure and implement business processes that connect all departments in an operation.
- Empowering – Modern Billing positions a service provider with the flexibility to make ongoing changes in response to market conditions such as regulation and competition.
- Direct – Modern Billing facilitates a rapid and straightforward implementation that can be installed independently by a system integrator and directly maintained by the service provider.
LogNet Systems delivers Modern Billing through its MaxBill solution. This Modern Billing approach and MaxBill can help a service provider grow its business and achieve its strategic objectives.
In emerging markets, Modern Billing and MaxBill will mean something different to each service provider. For an existing telecom operator, the Modern Billing solution can mean implementing best practices for business processes that reduce operational inefficiencies and remove manual processes that hinder service delivery and customer experience. For new players, Modern Billing can mean quickly defining new services with transparent billing and zero-touch service delivery.
As competition grows and services become more commoditized, service providers will need Modern Billing to create competitive advantages and grow their businesses.