MetraTech Corp., the innovative charging, billing, settlement and customer care provider and TNO, an independent research organization whose expertise and research make an important contribution to the competitiveness of companies and organizations, have announced the launch of a new whitepaper. Authored by George Huitema, senior strategist at TNO and Doug Zone, chief technology officer at MetraTech, ‘Income-Based Billing: Transforming Billing from Cost Center to Profit Center’ is available immediately for download from metratech.com/.
The paper explains that billing can be a powerful means for controlling resource usage and customer satisfaction in telecoms. In examining increasingly prevalent cases of network congestion and the resulting ‘crowd-out’ effect, the authors conclude that all-you-can-eat subscriptions no longer make sense, as high-value users inevitably get pushed out by the insatiable consumption habits of low-value customers. The result is that every time supply runs out, contention emerges and users perceive that less is being delivered because they have had to spend more time to get the same service.
“Because strategies centered on supply management and extensions to networks are not sustainable long term, managing demand is the better choice,” said George Huitema. “Handled with the correct strategy, operators can optimize utilization of existing network capacity and increase revenues while simultaneously meeting current customer demand.”
Doug Zone adds, “Only with ‘demand management’ through effective monetary pricing can operators influence consumers to optimize what they get from the network, without allowing any one group of users, or any one type of application, or any one behavior at peak periods, to ‘crowd out’ other users.
By segmenting customers according to their relative time and price sensitivities, it is much more likely operators can effectively manage consumption through differential policies that ultimately have a significant impact on behaviors and profits.”
The whitepaper draws on the expertise of MetraTech in business modeling, charging, billing, settlement and customer care alongside TNO’s knowledge of network issues, customer demands, usage patterns and price elasticity. Together, the two organizations help operators analyze and process network and customer utilization data in the most cost-effective manner possible.
Doug Zone concludes, “The convergence of knowledge around price and time cost elasticities with massively scalable charging and billing will help operators reduce crowding out by time-insensitive users and balance utilization in such a way that it opens capacity for time-sensitive and profitable users.”
TNO (tno.nl) is a prominent, independent research institute whose expertise and research contributes significantly to the competitiveness of businesses and organizations, to the economy and to the quality of life as a whole. TNO combines expertise and experience of ICT architectures, systems and applications, knowledge of usability and customer behavior. TNO has specific knowledge of new billing models and paradigms. TNO‘s Billing lab – the world’s first – has every conceivable billing model and is developing new ones all the time. TNO’s expertise in billing extends far beyond existing but complicated methods. At TNO future-proof billing models and technology are studied, combined with important conditions such as security and privacy. TNO currently is working on information and billing concepts for road pricing and decentralized power generation as yet there are no adequate, scalable and efficient billing models in these domains.
MetraTech Corp. (metratech.com) offers a new approach to charging, billing, settlement and customer care enabling organizations to embrace change without compromise. MetraNet, our flagship product, is unique in its ability to automate business processes and business models that address rapidly changing, complex or radical business strategies across any industry for an unlimited number of services. MetraNet is deployed globally, enabling diverse customers to build innovative and successful business models, securely collect revenue, and manage their entire customer lifecycle in some 12 languages, 26 currencies and 90 countries. MetraTech offers a variety of delivery options ranging from licensing to outsourcing. Headquartered in Boston, MetraTech has offices in San Francisco, Munich, Paris, Singapore, Rio de Janeiro and London. MetraTech is a venture-backed, privately held company whose investors include Accel Partners, Bessemer Venture Partners, Meritech Capital, and Vesbridge Partners.