1. Credit bundles as a tool to differentiate, increase market share and revenue thierry.vandevelde@eservglobal.com senior product manager IQPC Convergent Billing, Frankfurt, 24/11/2005

2. [back to main menu] p. 2 | Commercial In Confidence Scope A toolset of possible strategic directions to increase an Operator’s market share Convergent prepaid/postpaid campaigns and promotions Introducing convergent prepaid-postpaid products with existing IN Prepaid and Billing platforms Overview of today’s and tomorrow’s credit distribution channels : from prepaid scratch vouchers to inter-account credit transfer Operator case study : Orange Netherlands eRefill

3. [back to main menu] p. 3 | Commercial In Confidence Today's Operators' main strategic objectives in terms of market share Acquire new subscribers Reduce churn (increase loyalty) Increase ARPU (Revenue) Reduce ACPU (Cost) Operators cannot afford to work just in one direction

4. [back to main menu] p. 4 | Commercial In Confidence A toolset of possible strategic directions Increase ARPU Acquire new subscribers triple play2.5G-3G mobile office MVNO's & channels Residential/SOHOCorporateSME fixed-mobile VPN Reduce ACPU pre/postpaid convergence new credit distribution channels new network technology Operations, Marketing & CRM benefits Inter-account, Bank-to-mobile, Web… reduce the OPEX per BHCA/BHSA (could become contradictory objectives) Reduce churn CampaignsPromotions …because the acquisition cost is high anyway more tailorised & more real-time target users based on their likelihood to churn, and new service usage criteria NGN services simple tariffs better content substitute fixed by mobile …

5. [back to main menu] p. 5 | Commercial In Confidence Traditional promotions and campaigns no convergence between postpaid and prepaid… Postpaid promotions  Subsidise the terminal in return for a sufficiently long contractual commitment  Then face SIM-unlocking and churn Prepaid promotions  At top-up time, grant free prepaid credit (typically SMS)  Based on this month's prepaid usage, grant free credit next month (SMS) Postpaid campaigns  Select high or demographically interesting existing users, based on data warehouse analysis  Usually only traffic  Propose to waive some monthly subscription fees in return for a longer contract Prepaid campaigns  Propose to switch to new product type, for low price on-net or off-peak traffic  if multiple product types are supported by the prepaid IN system of course

6. [back to main menu] p. 6 | Commercial In Confidence New promotions and campaigns no distinction required between post- & prepaid New promotions  Multi-balance credit bundles  E.g. money + SMS + MMS + ringtones  Channel-dependent bonus  Adapt bonus to stimulate the most cost effective top-up channel (ATM, e-voucher, inter-account, bank-to- mobile, …)  Usage  Shorten usage calculation period e.g. down to one day  In-call  Per (Deci-)Second Billing  Degressive tariff  Every 5 minutes, 1 for free  Credit bundles  Buy 100 SMS for this week-end  Friends & Family  Virtual Private Network  Sponsoring  Location based New campaigns  Select users based on their likelihood to churn  Detect lower consumption asap  Select users based on new criteria  Incoming calls  Number of Friends & Family numbers  Credit transfer  Mobile data usage  etc  Introduce a Frequent Caller Scheme  E.g. Blue-Silver-Gold  with real-time usage calculation and in-advance threshold notifications  not after one month!  Propose credit bundles automatically (IVR, SMS)  Don't wait for people to see an ad! 100% Real Time

7. [back to main menu] p. 7 | Commercial In Confidence Definition of a Credit Bundle System GSM, GPRS, IMS HLR NGN Credit Bundle System Prepaid IN SCP Provisioning & CRM MSC SGSN CSCF SS7 INAP CAP Postpaid Billing System CDR transfer SIP ? ? purchasing & self-care SMS, MMS MAP UCP SMPP MM4

8. [back to main menu] p. 8 | Commercial In Confidence Examples of credit bundles One night for 10€  Unlimited calling & texting from 8pm to 8am, when network is empty A holiday week for 50€  Ultralow tariff for incoming calls and CAMEL call-back when roaming 100 email-to-sms for 5€  We text you a password when you buy the bundle; fill it in each email 1000 SMS for 20€ + 10 MMS for free  Valid one month (ARPU from texting is usually only 10€ a month) The Worldcup scores via SMS for 10€  Select which groups & teams via web/wap The Worldcup goals via MMS for 20€  Same remark The company pack  10000 minutes for 1000€, valid one month, mobile-to-mobile, mobile-to- company or company-to mobile; only available from your account manager! The ringtones collection  52 for 52€, we'll send you a new one every week if you don't select one yourself The WiFi pack  100 hours of WiFi access + 30 free VoIP minutes

9. [back to main menu] p. 9 | Commercial In Confidence Credit bundles have effects in multiple directions Increase ARPU Acquire new subscribers triple play2.5G-3G mobile office MVNO's & channels Residential/SOHOCorporateSME fixed-mobile VPN Reduce ACPU pre/postpaid convergence new credit distribution channels new network technology Operations, Marketing & CRM benefits Inter-account, Bank-to-mobile, Web… reduce the OPEX per BHCA/BHSA (could become contradictory objectives) NGN services simple tariffs better content fixed mobile conv. Reduce churn CampaignsPromotions …because the acquisition cost is high anyway more tailorised & more real-time target users based on their likelihood to churn, and new service usage criteria credit bundles

10. [back to main menu] p. 10 | Commercial In Confidence Credit distribution channels cash debit card credit card bank account parent prepaid account IVR PI eRefill scratch voucher shop IVR Web parent usage child usage child prepaid account EU e-money directive eRefill e-voucher PI or IVR credit bundle IVR Web SMS IVR Web SMS postpaid account invoice

11. [back to main menu] p. 11 | Commercial In Confidence USMS + UAS domain Universal Billing Engine (UBE) domain eSG Charging Control Services Service Providers, Product Types, Accounts, Wallets & Balances Service Provider Wallet Personal Balance Content Bucket 5 valid 7/11 Wallet Business Balance Roaming Balance General cash Balance SMS Bucket 9 valid 17/11 Product Type Account reference (subscriber) Default Language Contact Details Default Wallet Type Balance type (debit, single use debit, credit, limited credit.) 1N 1 1 1 N 1 N Balance Cascade 1 N #Units Unit Expiry date Last use date 1 N Wallet Type Personal 1 1 … ID CLI Description, language PIN selected flag PIN Account currency Allowed/Barring lists Friends & Destination lists, Number Translations Credit Card Details Audit fields, populated by system Call Data Records Account Profile Tags Name & Periods Restriction Plans Announcements Call Barring Number Translations Bypass Numbers Credit Card recharge rules Second Currency What’s New Help & Info Product Type swap policy Node Options Min. credit Balance Control Plans Named Events Tariff Plans Product Profile Tags State, Expiry Date # Concurrent accesses Java based operations & self-care

12. [back to main menu] p. 12 | Commercial In Confidence Conclusions Credit bundles are a new instrument to communicate more effectively with your end users  From mass market products to tailorised, personalised promotions  Churn reduction even in low-ARPU prepaid segments From now on, twin investments in separate prepaid IN & postpaid billing systems should be avoided  Purchasing/self-care channels, rating capabilities, CRM screens, separate marketing campaigns… Credit bundles are a new product  Like scratch vouchers, subscriptions or even credit cards Credit bundles may be shared among families, communities & businesses  Without encountering the restrictions of inter-account credit transfer Credit bundles may be the easiest way to introduce next generation services  Email-to-SMS, Content, WiFi, VoIP, IM …

13. Case study - Orange NL eRefill [back to main menu]

14. Thank you! [back to main menu]

15. p. 15 | Commercial In Confidence Acronyms 3GPP3rd Generation Partnership Project ACF(eSG) Access Control Function ACS(eSG) Advanced Control Services AMC(eSG) Advanced Message Control AMR(eSG) Advanced Message Router ASP Application Service Provider BGCF(IMS) Breakout Gateway Control Function BHCABusy Hour Call Attempts BRASBroadband Remote Access Server CAMEL(3GPP) Customised Applications of Mobile Enhanced Logic CAP(SS7) CAMEL Application Part CAPSCall Attempts Per Second CCS(eSG) Charging Control Services, real-time prepaid/postpaid charging CDRCall Data Record CHAM(OSA) Charging Control & Account Management CIS(eSG) Call Initiation Services COPS(IETF) Common Open Policy Service CORBA(OMG) Common Object Request Broker Architecture CPE(eSG) Control Plan Editor CSAPSCall or SMS Attempts Per Second CSCF(IMS) Call Session Control Function CSLAMCombined Subscriber Line Access Multiplexer DAP(eSG) Data Access Pack DSLAMDigital Subscriber Line Access Multiplexer FTM(eSG) Financial Transaction Manager HSS(IMS) HLR Sub System IMS(3GPP) IP Multimedia Subsystem INAP(SS7) Intelligent Network Application Part ISC(IMS) IMS Service Control interface ISUP(SS7) ISDN User Part LCP(eSG) Location Capabilities Pack LDAPLightweight Directory Access Prot. M3UA(SIGTRAN) MTP3 User Adaptation MGCMedia Gateway Controller MGWMedia GateWay MRF(IMS) Media Resource Function MSANMulti Service Access Node MSRP(IETF) Message Session Relay Protocol MTP(SS7) Message Transfer Part NGNNext Generation Network OSA(3GPP) Open Service Access ORB(CORBA) Object Request Broker PMP(eSG) Personal Mobility Pack PI(eSG) Provisioning Interface PIDFPresence Information Data Format (RFC3863) RCA(eSG) RADIUS Control Agent RTP(IETF) Real Time Protocol SAPSSMS Attempts Per Second SBC(IMS) Session Border Controller SCA(eSG) Session Control Agent (for SIP) SCCP(SS7) Signaling Connection Control Part SCF(OSA) Service Capability Feature SCPService Control Point SCS(OSA) Service Capability Server SCTP(IETF RFC 2960) Stream Control Transmission Protocol SDFService Data Function SDP(IETF) Session Description Protocol (RFC2327) SIGTRANIETF SIGnalling TRANsport SIMPLESIP for Instant Messaging and Presence Leveraging Extensions SIP(IETF) Session Initation Protocol (RFC 3261) SLEE(eSG) Service Logic Execution Environment SMPPShort Message Peer to Peer SMSShort Message Service SNMP(IETF) Simple Network Management Protocol SOAP(IETF) Simple Object Access Protocol SQLStructured Query Language SSSoftswitch SS7Signaling System No. 7 SUA(SIGTRAN) SCCP User Adaptation TCAP(SS7) Transaction Capabilities Application Part TPSTransactions Per Second UAMS(eSG) Universal Application Mediation Server UAS(eSG) Universal Application Server UBE(eSG) Universal Billing Engine UCAH(eSG) Universal Call Agent for H.323 UCAI(eSG) Universal Call Agent for ISUP (ex VSSP) UCPUser Computer Protocol UMS(eSG) Universal Media Server, VoIP SRF UNMS(eSG) Universal Network Mediation Server UPGW(eSG) Universal Parlay GateWay USMS(eSG) Universal Service Management System USP(eSG) Universal Service Platform USSDUnstructured Supplementary Service Data VPNVirtual Private Network WINWireless IN XCAPXML Configuration Access Protocol XMLeXtensible Markup Language