Telecoms providers are finding their margins under constant pressure. Regulatory environments in established markets are driving down costs to the consumer. In developing nations the level of competition in the telecoms market place is fierce and in some cases has pushed calling costs below a level of profitability. That means they need solutions that can increase their profitability and ensure that they wring every last cost saving from their processes.
Convergent Charging – A Game Changer
Convergent charging allows telecoms companies to unify their charging and billing systems into a single unit. That means those providers which offer a multitude of services can bring down their costs and exposure to risk by treating each customer as a single account across all those services, instead of creating multiple accounts for TV, Broadband, Fixed Line Services and Mobile Services.
The Uses of Convergent Charging
Reduced administrative burden. If a telco is creating single bills for each service and sending them to their clients they are creating a large amount of non-productive work and a much larger level of overhead. With a convergent charging system this is simplified into a single customer bill. That means reduced postage charges (one letter rather than many), reduced packaging costs (one envelope) and reduced admin burden throughout the value chain (fewer envelope stuffers, one trip to make payment, etc.)
Increased customer value. If your customers are treated as a single account it’s simple to develop packages which add value to that customer and increase the overall profitability of the account. High-spending clients can be offered discounts or additional services across a basket of services, and that develops a higher level of loyalty and reduces churn rates.
Reduced risk. If a client’s services are all handled through a single account it is easier for a telco to identify unusual patterns of behavior and take action against that behavior. That means a reduced risk of fraud or default on bills. It may also mean reduced churn rates in that a stolen handset might be identified faster and thus action can be taken preventing the client from receiving a large bill for which they don’t feel responsible.
Convergent charging systems offer considerable benefits to telcos looking to operate in highly competitive environments. They improve value for the client, reduce churn and reduce costs. In short they’re essential to survival in the industry today.
Convergent Charging – A Game Changer
Convergent charging allows telecoms companies to unify their charging and billing systems into a single unit. That means those providers which offer a multitude of services can bring down their costs and exposure to risk by treating each customer as a single account across all those services, instead of creating multiple accounts for TV, Broadband, Fixed Line Services and Mobile Services.
The Uses of Convergent Charging
Reduced administrative burden. If a telco is creating single bills for each service and sending them to their clients they are creating a large amount of non-productive work and a much larger level of overhead. With a convergent charging system this is simplified into a single customer bill. That means reduced postage charges (one letter rather than many), reduced packaging costs (one envelope) and reduced admin burden throughout the value chain (fewer envelope stuffers, one trip to make payment, etc.)
Increased customer value. If your customers are treated as a single account it’s simple to develop packages which add value to that customer and increase the overall profitability of the account. High-spending clients can be offered discounts or additional services across a basket of services, and that develops a higher level of loyalty and reduces churn rates.
Reduced risk. If a client’s services are all handled through a single account it is easier for a telco to identify unusual patterns of behavior and take action against that behavior. That means a reduced risk of fraud or default on bills. It may also mean reduced churn rates in that a stolen handset might be identified faster and thus action can be taken preventing the client from receiving a large bill for which they don’t feel responsible.
Convergent charging systems offer considerable benefits to telcos looking to operate in highly competitive environments. They improve value for the client, reduce churn and reduce costs. In short they’re essential to survival in the industry today.
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