How to optimise Inter Carrier Settlements

Transcription

1 Seminar on Costs & Tariffs for the TAF Group Member Countries Niamey (Niger), April 2001 How to optimise Inter Carrier Settlements Didier Lacroix Didier.Lacroix@intec-telecom-systems.com

2 Agenda Objectives and Methodology The Interconnect Process Issues Systems vs Interconnect Process Conclusions

3 Objectives & Methodology Objectives Assess the major issues faced by operators regarding intercarrier settlement Propose solutions in terms of process and IT systems Methodology Workshops with operators Based on optimisation of the InterconnecT process

4 The Interconnect Process Operator A Operator B Call Detail Records Outgoing Statement Incoming Statement Negotiations Payment ITU Pricing Account Mgt Reconciliation Settlement Outgoing Invoice Incoming Invoice Negotiations Payment

5 Issue 1 : Agreement Options Declaration Invoicing Where an Operator is unable to identify and invoice interconnect traffic, the other Operator(s) may provide the required billing information ITU Pricing Account Mgt Reconciliation Settlement Quicker settlement Start of payment conditions

6 Issue 1 : Risks with Declaration Inability to raise and verify invoices Lack of management information Accuracy Out of date rates Numbering errors Day elements Duplicate, missing and ineffective calls Rounding Invoices largely based on upstream operators declaration

7 Issue 2 : Reduction of TAR More accuracy needed Reduce and measure errors and lost traffic Minimise cost : expand usage of hubbing traffic take advantage of discounting Bring new traffic (hubbing, refiling, transit, ) High risk of error / Additional delay ITU Pricing IcT Pricing Account Mgt Invoicing Reconciliation Reconciliation Settlement Settlement Minimise cost

8 Issue 3 : Traffic is increasing IT systems cannot cope Scalability is key! System Architecture must be independent from System Functionality CPU increase should lead to throughput increase Scalability ITU Pricing Account Mgt Reconciliation Settlement

9 Issue 4: Increasing Complexity Ability to price new types of traffic more and more services more and more complex rating rules Flexibility to implement new product and services Controlled Impact Pricing Reconciliation (as consequence) (for providing required information) Complexity ITU Pricing Account Mgt Reconciliation Settlement

10 Issue 5 : Reduce Settlement delay Invoicing Reduce adjustments by improved pricing practices by automation of data entry by using a flexible billing system ITU Pricing Account Mgt Reconciliation Settlement Automation of data entry Invoicing

11 Issue 6 : Reconciliation delay Quicker reconciliation process automatic exchange of information with operators automatic loading of reference data use of effective start and end date verify traffic completeness full drill down facilities for better analysis re-pricing, re-processing functions ITU Pricing Account Mgt Reconciliation Settlement Automation Analysis Tools

12 Issue 7 : Negotiation Position Full control over the Interconnect process Get accurate information Full call tracability Stronger negotiation position Auditable system Ability to prove other operators errors Competition ITU Pricing IcT Pricing Account Mgt Invoicing Reconciliation Reconciliation Settlement Settlement Process control

13 Issue 8 : Face a dispute Get accurate information Ability to dig in the information and sort out the relevant information ITU Pricing Account Mgt Reconciliation Settlement Accurate information

14 Process vs Systems Operator A Call Detail Records Operator B Least Cost Routing Outgoing Statement Incoming Statement Negotiations Payment ITU Pricing Account Mgt Reconciliation Settlement Interconnect Accounting Least Cost Routing Billing Outgoing Invoice Incoming Invoice Negotiations Payment

15 Conclusion For a small investment organise your billing department and Systems along the Interconnect process You can save a lot of money be in a strong negotiation position Some experiences Swisscom, France Telecom, SPT, MATAV, Telkom SA, TPSA, VSNL,.