Reader Forum: Transparency is key for operators – avoiding “bill shock,” gaining trust and retaining customers

Editor’s Note: Welcome to our weekly Reader Forum section. In an attempt to broaden our interaction with our readers we have created this forum for those with something meaningful to say to the wireless industry. We want to keep this as open as possible, but maintain some editorial control so as to keep it free of commercials or attacks. Please send along submissions for this section to our editors at:dmeyer@ardenmedia.com or tford@ardenmedia.com.
The theory of the survival of the fittest has never been so fitting in the environment in which the telecoms industry operates today. While operators are adapting to the changing environment of the data deluge, the same can’t be said for consumers who, accustomed to their flat-rate data plans, are now confused and are taking the advice of consumer groups to take the “better safe than sorry” approach and are reducing their usage rather than running the risk of experiencing “bill shock.” Redknee is advising operators that this disconnect can be eliminated through real-time billing and charging systems that not only provide subscribers transparency and control of their usage but also a far superior customer experience, which uplifts the usage and thus increasing data average revenue per user.
Bill shock has been a hot topic in the industry across the globe but the catalyst for renewed attention in North America was the publication of the Federal Communications Commission’s findings that 30 million Americans have experienced bill shock at the hands of their telecoms providers. The reaction to this issue has attracted different responses from all sides of the industry.
The FCC is now considering the merits of implementing a system similar to the European Commission’s data roaming rules, which are aimed at bringing better charging transparency to subscribers while they are roaming in the European Union. Part of the regulations include implementing a €50 cap on data roaming usage as well as instigating usage alerts to roaming subscribers when they reach 80% and then 100% of their data allowance. As well as commending the consultation process by the FCC, consumer advocacy groups are also advising consumers to manage their roaming charges by turning off data roaming services, buying a local SIM, call less or use SMS because it is cheaper. The factor that both of these approaches are trying to overcome is the lack of communication consumers receive in order to understand the charges that will be incurred.
But operators have an opportunity to overturn this threat on data ARPU by enhancing the overall customer experience by providing real time charging transparency and empowering the customer to control their services and subsequent bills. Transparent and real-time communication between a CSP and its customers not only protects an operator’s data roaming revenues but also becomes increasingly important for inland subscribers as operators abandon flat-rate data plans in favour of usage-based pricing plans, which require a mind shift for consumers, who are accustomed to all-you-can-eat data plans.
The importance of real-time systems
As networks evolve, content and applications are delivered through various channels, service providers are no longer a “one-stop shop.” While this opens the marketplace, it also potentially increases complexity and confusion for subscribers. Enhancing a subscriber’s experience can be achieved by empowering them with decision-making about modifying price plans, bill payments, third party applications and payments. However, in order for operators to achieve this, the service provider’s environment needs to manage the lifecycle of the subscriber. Most of the current billing infrastructures do not provide a holistic view of subscriber usage and behaviours as they are inherited from the legacy batch-based systems. The lack of network and service consumption in real time at the network level creates a communication gap between the service provider and the subscriber at the customer level and at times leads to a poor customer experience that promotes churn. Real time systems create a transparent link between the back end network usage to the front facing service charge view for the customers.
Creating a successful business model that enhances the customer experience requires an environment of real-time systems. The value is driven through real-time convergent charging and billing solutions that provide an instant view of user communication, behaviour and spending. These systems enable real time IP traffic management to provide detailed subscriber usage patterns.
In addition, by providing real-time user management, service providers have access to status, presence and location, and deliver a contextually relevant service to their subscribers. Underscoring this new business model must be a real-time rating, charging and policy management solution for mobile data services that enables operators to rate and charge for data services, including in-demand offerings like mobile TV, in ways that work best for their subscribers.
From a regulatory perspective, these real time systems help institute usage alerts and cut-off mechanisms. Already implemented in the E.U., these systems may in the future provide U.S. consumers a seamless, easy way to monitor, on a real-time basis, their wireless roaming, voice, and text message plans.
As the industry seeks greater transparency and real-time subscriber-centric communication is a win-win for operators and their customers. For customers, they will truly enjoy a full, enhanced, personalized service experience, which not only increases customer loyalty but also drives data revenue for operators.