Billing Is Key To A Successful Fixed – Mobile Convergence Strategy A Bell Canada Case Study Dave Drapeau Senior Director - Strategic IS/IT Architectures Bell Canada Udi Atias Development Manager Amdocs BILL4 - Wednesday, October 13, 2004 2:00 PM - 3:00 PM Fixed-line CSPs are facing a mobile substitution threat, resulting in declining numbers of fixed voice minutes and line rentals. At the same time, they are also under pressure to reduce CAPEX and OPEX. An effective countermeasure to these threats is an overall fixed mobile convergence strategy. Bell Canada and Amdocs jointly present the One Bill and The Bundle offerings, available across all lines of business (fixed, mobile, ISP and satellite TV) and the billing solution enabling these convergence elements. A future roadmap for operational convergence is also reviewed.
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2004 - Proprietary and Confidential Information of Amdocs
Billing Is Key To A Successful Fixed – Mobile Convergence StrategyA Bell Canada Case Study
Dave DrapeauSenior Director - Strategic IS/IT ArchitecturesBell Canada
Udi AtiasDevelopment Manager Amdocs
BILL4 - Wednesday, October 13, 2004 2:00 PM - 3:00 PM
Fixed-line CSPs are facing a mobile substitution threat, resulting in declining numbers of fixed voice minutes and line rentals. At the same time, they are also under pressure to reduce CAPEX and OPEX. An effective
countermeasure to these threats is an overall fixed mobile convergence strategy.
Bell Canada and Amdocs jointly present the One Bill and The Bundle offerings, available across all lines of business (fixed, mobile, ISP and satellite TV) and the billing solution enabling these convergence elements. A
future roadmap for operational convergence is also reviewed.
2
Introduction
2
3
Improved mobile voice quality and coverage
Mobile CSPs include long distance minutes as part of their calling plans
Mobile CSPs offer ‘homezone’ tariffs
Increased desire for mobility
Willingness to pay price premium for mobility, falling mobile prices
Cost of fixed line RC has risen more than 10% over the past 3 years (W. Europe)
Local Number Portability
Mobile equipment vendors pushfixed-mobile substitution (Nokia)
Fixed CSP
• Substitution of primary line with cable broadband + mobile phone:
• Non traditional voice substitution: e-mails, SMS, IM and…VoIP• Broadband substitution: no need for second line in case of DSL/Cable
Fixed Communications Service Providers (CSPs) Face Mobile Substitution Threat
4
Global Wireline & Wireless revenues ($B)
591 607 635 669 707 743 781
328 362 404 437 461 485 509
0
200
400
600
800
1000
1200
1400
2001 2002 2003 2004 2005 2006 2007
wireline wireless
Source: Gartner, December 2003
0500
100015002000
2500300035004000
2002
2003
2004
2005
2006
2007
Local
Long distance
-2.7% CAGR
-4.4% CAGR 125000
130000
135000
140000
145000
150000
155000
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
Fixed minutes of voice traffic (US, in B) Fixed retail lines (US, in 000s)
Published Q4 2003, source: IDC Published Q4 2003, source: UBS
But… But…
Mobile Substitution Results In…
5
• Fixed CSPs are taking measures to stem revenue decline, grow ARPU, increase customer stickiness and reduce churn:☑ Work on positive brand association☑ Promote the price advantage of fixed☑ Bundle local/long-distance and voice/ADSL☑ Push loyalty plans☑ Rely on dial-up internet connection
and DSL as growth driver☑ Offer mobile services (subsidiaries/partners)
• …but still, these are not direct countermeasures to Fixed-Mobile Substitution (FMS), and there’s too much at stake for fixed CSPs to allow users to churn away into the more competitive mobile market
Fixed CSPs Are Fighting Back
6
Why having strong fixed and mobile subsidiaries is not enough?
1. Fixed CSPs cannot assume they will be able to capture the lost fixed traffic on their mobile network
2. Regulatory-mandated cuts in mobile termination rates (calls from fixed to mobile) will lead to loss of revenue –so a large mobile subscriber base is not enough
3. Though mobile ARPUs are better than fixed, they have come down significantly because of stiff competition
4. Internet dial-up will be replaced by broadband, not necessarily provided by fixed
And there is the pressure to save on CAPEX and OPEX
Fixed CSPs Are Fighting Back
7
Fixed – Mobile Convergence (FMC) Strategy
7
8
Networkconvergence
Operationalconvergence
Same physical infra (e.g. SS7, IN, core network, IP) is used for both fixed and mobile services.
Customer service is based on market segment (e.g. residential / business), independent of the underlying technology. Single source for customer care and billing.
Degree of physical integration between fixed and mobile, e.g. fixed-mobile convergence phones, network services.
Services packaged together, without physical integration. With or without single bill.
time
Definition
FMCservices
FMCbundles
9
Residential: cheaper and better quality calls, seamless connectivity.Business: functional integration of mobile with PBX, cost savings on calls to mobile.
Better and cheaper converged services.
Improved service.
Residential: Substantial discount and convenience in case of single bill.Business: Greater buying power and shorter negotiating time. Explicitly request single bill.
Networkconvergence
Operationalconvergence
one-stop-shop
FMCservices
FMCbundles
Value For End Users
10
Reduce mobile substitution and call substitution.Differentiate offerings and boost customer loyalty.
Cost saving.Cost saving, improved cross selling, integrated product development and customer view.
Stem revenue decline, grow ARPU and reduce churn (up to 70%!).
Capex savings of 15% to 20% and Opex savings of around 30%. (Forrester)
FMCservices
FMCbundles
Networkconvergence
Operationalconvergence
Value For The CSP
11
Bell Canada’s “One Bill” Project
11
12
Key Bell Canada Facts & Product Brands
1,427,000Total Satellite TV subscribers:
1,670,000Total High-Speed Internet subscribers:
4,599,000Total Cellular and PCS wireless subscribers:
12,938,000Number of local access lines in service:
Bell Mobility provides a complete range of innovative wireless communications solutions: PCS and cellular, Web browsing and data, two-way messaging, paging, and airline passenger communications services.
Sympatico is Canada's most popular ISP and Internet portal. It provides an integrated collection of local, national and global Internet content, as well as various Internet-based products and services for the consumer and small-office/home office market in Canada.
Bell ExpressVu provides the highest quality and most comprehensive Direct-to-Home (DTH) services across the country with over 300 digital channels and a full gamut of interactive TV services.
Bell provides a wide range of advanced telecommunications services to consumers, small and medium-size businesses and large enterprises.
13
In the Beginning … What we had
ExpressVu
DTH Billing
Legacy Voice (Consumer)
WireLine Billing
Sympatico
ISP Billing
Wireless
Wireless Billing
Customer
Invoice
Web
Rat
ing
Invo
icin
g
Acc
nt R
ec
Col
lect
ions
Mgm
’tR
epor
ts
Prod
uct M
gm’t
E B
ill P
&P
Invoice
Web
Invoice
Web
Invoice
Web
A
A
A
OM
OM
OM
Consum
er Portals
Consum
er Portals
Consum
er Portals
R I AR C MR PM EB EM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
Even
t Mgm
nt
Predominantly an “a la carte”centric world with Bundles
being force fit
Predominantly an “a la carte”centric world with Bundles
being force fit
CC
CC
Act
ivat
ion
Ord
er M
gm’t
Cus
t. C
are
CC
CC
Each billing system had its own rating, invoicing, A/R,
Collections, Reporting and E-Bill
Some also included Activation and Order Management
Each billing system had its own rating, invoicing, A/R,
Collections, Reporting and E-Bill
Some also included Activation and Order Management
Award for extreme oversimplification
14
What we wanted: FMC Business Goals
• Deliver fixed-mobile-ISP-TV convergence through an integrated bill and one payment capability for BCH residential customers for all lines of business (Bell, Mobility, Sympatico and ExpressVu).
• Deliver cross LOB product bundling, rebate, loyalty and discountcapabilities to enable BCH to attract new customers while reducing churn among its existing base.
• Integrate the customer’s separate bills to one consolidated bill, driving down the cost of bill production and delivery
• Deliver one-stop customer care through a common call center, an advanced e-bill presentment facility and a suite of payment methods to round out the customer value proposition.
• Provide financial reporting and journalizing by LOB and by One Bill offer, even if the Bill One Bill merges all Legacy input on the bill.
15
Open for Future Integration of Additional LOBs
A common input feed interface allows easy integration of additional LOB’s
Enhanced Integrated MarketingStimulating one LOB by offering
discounts on another, based on the target LOB spending levels
Builds on Existing Capabilities of the Legacy Systems
One Bill, as a post-billing system, is built on top of legacies, making the
legacy’s rating output available to One Bill
Short “Time to Market” for Offers2-4 weeks of implementing (including
testing) of new bundles, discounts, rebates and price overrides
Common Customer Behavior Analysis
One Bill’s Credit Risk Scoring Subsystem analyses payment behavior
of customer across all LOBs
Business Integration AppearanceSeparate bill sections for each LOB and dedicated sections for totals and cross
products discounts and bundling
What we wanted: FMC Design Goals
16
What we wanted: FMC Capabilities
Rebates• One-time product rebate plans
Free Month or Subscribe to Sympatico and get ninth month free• One-time product rebate plans
Cash Rebate or Subscribe to ExpressVu and get one-time $40 rebate• Capped plans, e.g. Mobility customers get eleventh month free, up to $40
Cross-product Discounts• Feature stimulation plans / Product Bundles
Get $5 off Sympatico High Speed DSL if subscribed to Bell Long Distance plan• Loyalty Plans
Spend at least $100 a month and get 10% of non-tariffed portion of the total bill.• Usage Stimulation Plans
Spend $50 a month on Bell Canada and Mobility usage and get 20% off
Pricing Override • Employee Discount Plan / Affinity Group Discounts
Customers who are BCH employees are given corporate discount
17
MobileSatellite Fixed Internet
Post-Billing Charges
• Single bill
• Single payment
• Cross discount
• Bundled offers
What we got: One Bill !!!!
Consolidation
18
What we got: a Simple, Convenient and Flexible Customer Offer
19
What we got: Cross-LOB “Digital Bundles”
20
Provides the means for bundling and cost savings
Special benefits
Cross discounts (billing)
Talk more than $30 on fixed or wireless overseas and get free domestic calls
Bundling different LOB services
Buy satellite and mobile packages, pay one RC for both
Reward programs for targeted spending with bonus capability for specific product acquisitions
Buy a wireless package, save $5 on RC of selected IP and Satellite Offers
What we got: A “Value Add” FMC Strategy
21
What we got: One Bill High Level View
ExpressVu
DTH Billing
Legacy Voice (Consumer)
WireLine Billing
Sympatico
ISP Billing
Wireless
Wireless Billing
Customer
A
A
A
OM
OM
OM
Consum
er Portals
Consum
er Portals
Consum
er Portals
R I AR C MR PM EB EM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
CC
CC
CC
CC
One B
illEnsem
ble
R
I
AR
C
MR
PM
EB
CSM
One B
ill Hub
22
How we did it: Business Assumptions
• Participating affiliates are Bell Canada, Bell Mobility Wireless, Sympatico and ExpressVu
• Bell Canada is the affiliate that “owns the customer relationship”
• Bell’s One Bill call centre will handle all calls for One Bill customers, handing off to affiliates only if call involves a detailed affiliate provisioning or servicing aspect
23
How we did it: Legacy Implications
• Customer Care and Billing– Establish One Bill Flag within legacy Customer Care
system(s) and Billing Systems– Block updates to legacy customer care systems for specific
billing data– Receive / Respond to One Bill Hub for up to date Customer
information, including cancellation information– Generate “Generic Invoice Format” billing details to One Bill– Credit customer’s legacy A/R for charges ‘sold’ to One Bill – Transfer customer servicing calls from One Bill Call Center to
LOB legacy Call center for detailed provisioning needs.
• Web– Block and redirect customer inquiries via the LOB’s Web to
One Bill Web location
24
How we did it: Legacy Implications (cont.)
• IVR– Block and Redirect One Bill customer’s inquiries via the
LOB’s IVR system to One Bill IVR. • Data Warehouse
– Coordinate effort with Finance for required Billing details created in Ensemble and establish feed to data warehouse
– Process to capture near real time updates from One Bill Hub– Process for new feeds from Affiliates for Mass registration
• Finance– Financial transactions and reconciliation from Bell Canada to
LOB affiliate (e.g. “OK … which LOB eats this discount?”)• Collections
– Since collections is now in One Bill, affiliate’s LOB systems service cancellation processes must respond to “deadbeat triggers” from One Bill Hub
25
What's Next? - Single Back Office
One B
ill Hub
Consum
er Portal
ExpressVu
DTH Billing
Legacy Voice (Consumer)
WireLine Billing
Sympatico
Ensemble
Wireless
Ensemble
One B
illEnsem
ble
Customer
R
I
AR
C
MR
PM
EB
A
A
A
R I AR C MR PM EB EM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
1 Page BillTarget…
Details on the Web
1 Page BillTarget…
Details on the Web
Single A/R Collections, Reporting, Payments, e-bill process, etc…
Single A/R Collections, Reporting, Payments, e-bill process, etc…
CC
CC
CC
CSM
Drive all accounts
thru OneBill
Drive all accounts
thru OneBill
26
What's Next? - Single Front Office
Order M
gmnt
Consum
er Portal
ExpressVu
DTH Billing
Legacy Voice (Consumer)
WireLine Billing
Sympatico
Ensemble
Wireless
Ensemble
One B
illEnsem
ble
Customer
R
I
AR
C
MR
PM
EB
A
A
A
OM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
R I AR C MR PM EB EM
Consistent Front End across all LOB and Channel
Consistent Front End across all LOB and Channel
Drive Bundle Order Entry & Management & Activation via
Order Mgmnt and Bell.ca
Drive Bundle Order Entry & Management & Activation via
Order Mgmnt and Bell.ca
CC
CC
CC
CSM
CC
OBD
CSM
Single Access:to all Billing
Data
Single Access:to all Billing
Data
One Bill Direct: Drive Bundle price directly into OneBillOne Bill Direct: Drive Bundle price directly into OneBill
NOTE: At this point in roadmap the Customers, Channels and CSRs have a common and consistent interface into the Front and Back Office systems … independent of LOB
NOTE: At this point in roadmap the Customers, Channels and CSRs have a common and consistent interface into the Front and Back Office systems … independent of LOB
27
Summary: “Billing is key to a successful fixed-mobile convergence strategy”
• Billing is a key to Bell’s successful fixed-mobile strategy – Many services … one bill– Fixed Wireline, Wireless, video and data
• Bell’s current One Bill is a phase 1 step only– Consolidated invoicing plus discounting and new service billing– Customer-driven manual profile bundling– Consolidated back-end billing services, one bill for customer, other benefits
• Next phases deliver billing for a convergent service offering– Converged billing allows new “digital bundle” as a product with cross-LOB features– Disentanglement of current ordering-provisioning-billing legacy chain – Enhanced service features and related billing capabilities– Event-based billing supports ad-hoc feature and content purchasing, 3rd party service
integration, pre-paid– Pooled minutes across fixed, mobile, calling card and VoIP– Flat-rate, thresh-hold, rated usage, etc. pricing and details reporting convergence
2004 - Proprietary and Confidential Information of Amdocs
Thank You
Dave Drapeau Senior Director - Strategic IS/IT ArchitecturesBell Canada
Udi AtiasDevelopment Manager Amdocs
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