Mobile Billing Systems Developing a Next Generation Billing System for Hutchison 3G Austria Martin Baumgartner Billing Architect Roman GöbelBilling Manager 27th – 30th Sep 2004 Budapest, Hungary

Building a 3G Tolerant Billing Environment Understanding the challenges of billing for true 3G content and services Key requirements for a 3G Billing System Assessing how 2G operators face significant challenges around migrating from legacy billing systems primarily designed to rate and charge voice services

The Company

H3G Austria is a 100% subsidiary of Hutchison Whampoa Ltd. Hutchison Whampoa Limited (HWL) –revenue 2003: HK$ Mio. (~ € Mio.) –over 170,000 employees in 39 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 18. August 2004 Currently 10 H3G companies worldwide 3International: over 3,2 Mio. Kunden In just 3 month the customer base was doubled compared to the previous 15 month 3Austria: over Kunden In the last 5 month the customer base has triple compared to the previous 10 month 60 EUR ARPU in Austria

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 for Cost Control & Fraud Management Offer Standardized Billing Processes and Functionality for all Subscribers Competing in a Highly Penetrated Market Requires Flexible Offerings

Offered Products 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) – , Alerts, MMS, SMS, Chat, UMS Voice & Video Telephony (Time based) –Voice, Video Internet (Volume based) –Internet Access

The Door to Mobile Multi Media.

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 Messagi ng SMS MMS MMS contentContent Downloads/ Pages Content Streaming All Content Categories

Building up entirely new Systems & Processes for 3G

Objective Converged Billing to align Billing Processes Focus the Billing System on Billing Functionalities Quick Time to Market – Flexibility! Integrated Third Party Settlement

Understanding the 2G Migration challenge

„Classical“ 2G Environment seen from a Charging Point View

Advantages/Disadvantages +Prooven Architecture +Generally covers 2G Requirements - No Pre/PostPaid Convergence - High Integration Costs (IN + Billing System) - No Real Time Charging - Fraud – No Real Time Cost Control

Our Understanding of a Convergent Billing Environment

Network Overview

Billing – 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 (credit limits) Dispatches spending alerts

BSS Billing – Commerce Engine

Billing – Credit Limits 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

Enabling 3G Services with a 2G Environment? …

2G Migration Challenge Enable Flexible Charging & Billing Charging of Expanded Product Portfolio Converged Billing to Minimize Costs Shorten T2M with a Converged Billing Online Charging to Enable Cost Control & Assurance of your Revenue Migrating to a New Billing Architecture Versus Extending an Existing Environment?

Are YOU ready - now to launch with … G

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