2. Peter A. Rake 24th November 2005 p.a.rake@kpn.com Observations on Convergent Billing Experiences of a Program Manager Billing

3. 24th November 2005Observations on Convergent Billing - Peter A. Rake2 Context Experiences mainly from Billing Program for the business market in Division Fixed Earlier approach Billing Program was based on large scale migration of all existing billing chains –Using Commercial-off-the-Shelf (COTS) solution –Conducted by an external System Integrator –Project cancelled: too large and too expensive Current approach Billing Program - runs for 1.5 year now - –Differentiation between traditional and new portfolio –Executing several billing projects with smaller scope and investments –Use of COTS solutions that are already in place (Siebel, Portal Infranet)

4. 24th November 2005Observations on Convergent Billing - Peter A. Rake3 KPNs approach to convergent billing Billing program business market runs projects with three goals –Increase customer satisfaction –Improve time-to-market –Lower TCO From product focus (‘stovepipes’) to customer focus Convergence in billing chains –for traditional portfolio driven by Operational Excellence –for new (IP based) portfolio driven by customer orientation and revenue growth Convergence of fixed and mobile billing in initial phase –Electronic bill presentment –Accounts receivable

5. 24th November 2005Observations on Convergent Billing - Peter A. Rake4 Current billing chains based on portfolio (stovepipes) Order entryMediationBill rating/ calculationBill presentment A/R Rating Polling, collecting Bill calcu- lation Bill distri- bution Print and mail Guiding/ formatting Delivery / provisio- ning Ordering Collecting/ Payment mgt Pricing Residential market: ISP (XS4ALL – Planet Internet) KPN Mobile: Pre-paid services Residential market: Traditional Voice KPN Mobile: Post-paid services Residential market: New services (VoIP – KPN Television) Business market: Traditional Voice Business market: Leased Lines Business market: # Traditional data services (e.g. ATM – Frame Relay – DigiAccess) Business market: PABX services Business market: New IP services (IP VPN – VoIP – Office DSL)

6. 24th November 2005Observations on Convergent Billing - Peter A. Rake5 Convergence step 1: Rationalization - less chains within each segment Order entryMediationBill rating/ calculationBill presentment A/R Rating Polling, collecting Bill calcu- lation Bill distri- bution Print and mail Guiding/ formatting Delivery / provisio- ning Ordering Collecting/ Payment mgt Pricing KPN Mobile: Pre-paid services Residential market: Traditional Voice KPN Mobile: Post-paid services Residential market: New services (VoIP – KPN Television – ISP) – Triple Play Business market: # Traditional data services Business market: PABX services Business market: New IP services (IP VPN – VoIP – Office DSL)

7. 24th November 2005Observations on Convergent Billing - Peter A. Rake6 Convergence step 2: Customer Focus - new portfolio concentrated in one chain Order entryMediationBill rating/ calculationBill presentment A/R Rating Polling, collecting Bill calcu- lation Bill distri- bution Print and mail Guiding/ formatting Delivery / provisio- ning Ordering Collecting/ Payment mgt Pricing KPN Mobile: Pre-paid services Residential market: Traditional Voice KPN Mobile: Post-paid services Residential market: New services (VoIP – KPN Television – ISP) – Triple Play Business market: # Traditional data services Business market: PABX services Business market: New IP services (IP VPN – VoIP – Office DSL)

8. 24th November 2005Observations on Convergent Billing - Peter A. Rake7 Convergence step 3: Customer Focus - shared platform for Bill Presentment and A/R Order entryMediationBill rating/ calculationBill presentment A/R Rating Polling, collecting Bill calcu- lation Bill distri- bution Print and mail Guiding/ formatting Delivery / provisio- ning Ordering Collecting/ Payment mgt Pricing KPN Mobile: Pre-paid services Residential market: Traditional Voice KPN Mobile: Post-paid services Residential market: New services (VoIP – KPN Television – ISP) Business market: # Traditional data services Business market: PABX services Business market: New IP services (IP VPN – VoIP – Office DSL) Postbilling Platform for Electronic Bill Presentment Generic tool for A/R Customer oriented

9. 24th November 2005Observations on Convergent Billing - Peter A. Rake8 Lessons learned 1.Contribution billing to revenues should not be exaggerated Business customers nowadays focus on price and quality of service Billing is a dissatisfier but not a differentiator for selecting between service providers and operators (especially business market) 2.Support for large scale billing projects in business is low Evolution instead of revolution Commitment to billing projects lasting more than one year is difficult; a steady flow of smaller projects is supported 3.Product managers and marketeers are not very billing minded 4.Not only focus on billing systems but also on billing processes