Management IQ - Intelligent Convergent Billing Living Convergent Billing Hutchison 3G Austria Kurt Teichenthaler Head of BSS Martin Baumgartner Billing Manager 23 th – 25 th November 2005 Frankfurt, Germany

Kurt Teichenthaler Head of Business Support Systems Hutchison 3G Austria GmbH Gasometer C Guglgasse 12/10/ Vienna Tel: +43 (0) Fax: +43 (0) mobile: Martin Baumgartner Lead of Billing & Payments Hutchison 3G Austria GmbH Gasometer C Guglgasse 12/10/ Vienna Tel: +43 (0) Fax: +43 (0) mobile: Martin Baumgartner is the Billing Manager at Hutchison 3G Austria. His focus is on development and operations of the entire billing environment to enable charging and billing for all 3G Mobile Multi Media Services. In addition he is also responsible for Mediation, Interconnect Billing as well as for Payment & Collection Services. He joined Hutchison as Billing Architect in 2002 to design and build up the converged Billing Environment for Mobile Multi Media Services. Prior to joining Hutchison Martin Baumgartner worked for T-Mobile Austria where he acted as Project Manager and Billing Specialist within the IT department. Martin is working for over 7 years within the Billing area. Kurt Teichenthaler is managing the BSS Development and Operations, covering Billing, CRM, Business Intelligence, EAI as well as ERP within Hutchison 3G. Based in Austria his focus is on delivering IT supported business processes to enable new Mobile Multi Media Services, offered under the brand name “3”. He joined Hutchison as Billing Manager in 2001 building up an entirely new 3G Environment to support 3G Services. Prior to joining Hutchison Kurt Teichenthaler worked for T-Mobile Austria where he headed the Operation of the Data Center. Previously he managed Intelligent Network Projects. Kurt has also supported different Telecommunication companies in Europe to successfully implement Pre Paid Products.

Living Convergent Billing Understanding the challenges of billing for 3G content and services Key elements of a converged billing and charging architecture Advantages and benefits on an entire new converged billing environment New strategies on revenue assurance using online account and balance management

The Company

H3G Austria is a 100% subsidiary of Hutchison Whampoa Ltd. Hutchison Whampoa Limited (HWL) –revenue 2004: HK$ 179 billion (~ € million) –over 210,000 employees in 52 countries –is among the largest companies listed on the main board of the Hong Kong Stock Exchange. Hutchison 3G Austria –offers 3G services under the brand name "3" –acquired one of six licences and frequencies for the Austrian UMTS network in November 2000 –Launched 3G Services in May 2003 –95% UMTS Market Share in Austria Retail & Manifacturing Property & Hotels Ports & related Services Energy & Infrastructure Telecommunicati ons Internet 2G 3G

Facts & Figures Press Conference August 2005 Currently 11 H3G companies worldwide 3International: over 10 Mio. Customers 3Austria: Customers 480 employees 56 EUR ARPU in Austria 13% Non Voice ARPU UMTS Network Coverage 50%

The 3G Billing Challenge

UMTS is enabling 3G Services

3G - a new Media: Billing Objectives 3G Services Combines Telecommunication, Internet and Media (Radio, TV, Print). Revenue Share with Content Partners Online Charging to allow Cost Control & Fraud Management Offer Standardized Billing Processes and Functionality for all Subscribers Competing in a Highly Penetrated Market Requires Flexible Offers

Product Portfolio Download (Event based) –Videos like Weather, News, Sports, Playboy... Info Services (Event based) –Location Services, News, Phonebook.... Products (Event – e.g.: 30 day license) –Gaming Messaging (Event based) – , MMS, SMS, Chat, UMS Voice & Video Telephony (Time based) –Voice, Video, Mobile TV Internet (Volume based) –Internet Access

Products

The Billing Challenge Event Based Time Based Volume Based Pre- Priced Circuit Switched Voice Call Video Call (Fax/Data Call) Voice Call Video Call (Fax/Data Call) TAP Processin g Packet Switched Zone Based IP Charging TAP Processin g Messagi ng SMS MMS MMS contentContent Downloads/ Pages Content Streaming Mobile TV Live Events Content Streaming All Content Categories

Key Elements of a converged 3G Billing Environment

IT Architecture designed in accordance with Business Processes & not vice versa

„Classical“ 2G Architecture

Converged Architecture - Overview

Billing – Balance Management Balance Management is not a single functional area Functionality is provided by: Commerce Engine Interface with network elements for real-time service authorization Reserves account credit while an event is in progress Rating & Charging Calculates event charges Customer Account Model Manages account spend control balances Dispatches spending alerts

BSS Billing – Commerce Engine

Where is now the difference between Pre and Post Paid? 0 Charges Incurred Payment Made Payment Made (top-up) Charges Incurred Positive Balance Pre-Pay Post-Pay Limit Negative Balance

Advantages and benefits having a converged billing environment

Product Example – Scope Tariff for contract customers having a guaranteed monthly spend limit –Activated via normal post paid process –Runs thru credit verification –Able to choose monthly pre paid amount –Has a monthly recurring charge & free units –Receives monthly invoice & usage information –Has a contract binding period –Can use all Products except international roaming and VAS –Can top up his account separately –Guaranteed invoice limit! –Ability to offer existing Billing Packages like 100SMS / month for 3 EUR –Offer this product to all customers (consumer & cooperate customers)

Implementation New services & tariffs created or adopted in the converged Billing Environment –Creation of new tariff within Billing –Creation of Tariff bundles for POS –Update Business rules for customer life cycle (tariff changes, upgrades, …) –Automated process for money back guarantee within Billing –Automated process for account top up in advance

Non converged Architecture Challenge Implementation only possible on IN-PPS Service due to online charging requirement Potentially not all Services accessible (eg: Content) or needs at least further investigation to offer full Post-Paid Portfolio Tariff Change to real Post Paid Tariff IN PPS Service is normally not activated via Post Paid process (eg: Credit Verification, Address Check, etc) IN PPS Service does not support Contract Binding Period IN PPS does normally not support Invoice Creation No chance to handle this service in a customer hierarchy because of the use of different systems

Figures on Implementation Total Duration of Project Scoping&Requirements4 weeks Design & Development2 weeks! Test3 weeks Total 9 weeks from idea to Commercial Launch Total Effort (IT)150MD Try to calculate & implement in a not converged architecture!

IT as Business enabler for new Product Ideas!

New Strategies on and Revenue Assurance

Account & Credit Management Every Account has it‘s own credit limit and shadow credit limit Credit limit used to approve event in real-time When a limit is breached billing sends a notification to external systems Credit limits consider full account balance Invoices Payments/ Credits Adjustments

Account & Credit Management Online Balance Management enables –Online customer authorization for specific services –Events are authorized, reserved and rated online –Having the customers account online enables real time Credit Management –Enables Cost Control for all your customers Credit Management enables –Manage the customers credit liability on his account –Consider Collection of not paid invoices in his credit limit –Consider current usage online - High Usage Prevention –Alarming on credit breaches

And your IT figures? No expensive implementation & maintenance of different business processes for Pre & Post Paid – use the same ones! Use your existing Billing Packages (eg: 100 SMS Add On for 3 EUR per month) also for Pre Paid customers No Issues on tariff changes between pre & post paid Save OPEX on lean architecture & transparent processes Save time & money on further implementations Gain business benefit on T2M & new possible features for Marketing & Finance

The Future is Converged!

Thank You ! G