Electronic Payment Billing for Internet Telephony and Services Edoardo Berera University of Nice Sophia Antipolis Telelinea 26 September 2001 Seminar on Electronic Commerce September 2001

E. BereraUNSA / Telelinea2 Telephone Bill Re-engineering Transport and services billed separately Packet Transport –flat rate (for best effort service) –volume based (for resource reservation or differentiated service) Service –per-use –subscription basis

E. BereraUNSA / Telelinea3 How To Bill a Telephone Call Call Detail Record (CDR) –Originating and terminating numbers –Type of call, Starting time, Duration CDR delivered from originating switch to billing center Source: C. A. Polyzois et al., “From POTS to PANS….” (© IEEE Network, May/June 1999, pp )

E. BereraUNSA / Telelinea4 How To Bill IP Tel IP Telephony –Authentication, Authorization and Accounting (AAA) architecture –Policy Enforcement Points (PEP) gateway, router or server –Policy Decision Points (PDP) Customer databases Access and rules information Billing policies Source: C. A. Polyzois et al., “From POTS to PANS….” (© IEEE Network, May/June 1999, pp )

E. BereraUNSA / Telelinea5 Protocols and Formats AAA Protocols –Common Open Policy Service (COPS) –DIAMETER PEP - PDP Accounting Data Interchange Format (ADIF) –protocol independent –SIP servers to billing centers

E. BereraUNSA / Telelinea6 From Telephone Bill to E-Commerce Two perspectives of communications services –subscription service –individual purchases Latter more attractive if users want to maintain business relationships with a large number of service providers and transport providers

E. BereraUNSA / Telelinea7 W3C E-Commerce Protocols Services as goods to be priced and purchased individually like normal products Web E-Commerce models and languages –Medium to High price transactions Internet Open Trading Protocol –Low price transactions (micropayments) Millicent Protocol –E-Commerce Markup Language (ECML)

E. BereraUNSA / Telelinea8 Internet Open Trading Protocol Identify customers Negotiate prices and conditions Convey account information –XML-based account records Several transactions, including credit card records Aggregate record for billing or collection

E. BereraUNSA / Telelinea9 Micropayments Rising importance of intangible goods –newspaper article –a song –this presentation… ;-) Instantaneous electronic delivery at negligible cost “Conventional” payment methods more expensive than the “actual” product –No need to identify customer, accounts, credit cards –No need to negotiate conditions need to pay cash

E. BereraUNSA / Telelinea10 Millicent Protocol Low-value transactions –0.5 to 50 cents E or $ Decentralized validation of electronic cash valid only for a specific vendor (scrip) –Information could be carried as part of a multipart/sip-id MIME type in SIP Requires scrip brokers

E. BereraUNSA / Telelinea11 E-Commerce Markup Language Standard set of information fields used in commercial transactions (Schema definition) –“Deliver to:” address –“Bill to:” address –Username, Password (for account subscribers) –Card type, number, expiration date –Wallet ID (for e-cash purchases) –Amount, currency

E. BereraUNSA / Telelinea12 Call Detail Record Authentication, Authorization and Accounting –Common Open Policy Service –DIAMETER Accounting Data Interchange Format Internet Open Trading Protocol (RFC 2801) –IOTP Payment API E-Commerce Markup Language (RFC 3106) Online Resources (IETF)

E. BereraUNSA / Telelinea13 Online Resources W3C E-commerce and Micropayment Activity –Millicent Protocol IEEE Internet Computing, May/June