Telecommunication billing is a process where consumption data of users is collected and the consumer is charged on the basis of that usage. It is a significant activity for any telecom company. It is responsible for generating a significant part of the revenues. Therefore, as a telecom company in charge, one can ill afford to ignore it. It is extremely important to arrive at the exact bill amount. Overbilling should be avoided as it will create an unnecessary antagonism between the user and the telecom company. Whereas under billing means loss of revenues for the service provider. Hence, arriving at the exact figure is of utmost importance.
The activity is aimed at creating economic value for the business. It is a bit complicated and the function is classified into three major activities. They are operation, information management, and financial management. In the operations part, the main activity is to capture the usage data. Depending upon the industry it may be anything from call detail records, charging data records, or even network traffic management data. On special instances usage data can be prepared by telecommunication mediation systems. However, the operations are a huge system where everything from total time of calls, short term messages, is calculated. The price tariffs then applied. This function can vary based on the payment model. In the case of prepaid customers, it is essential that billing should be realized on a continuous basis. It is referred to as hot billing. Once there has been usage the system automatically decreases further usage limits. However, in the post paid system the charges are calculated once a month.
Then there is information management, which stress on the need to unite the factors that support customer information product, service data, pricing models. It also may include their possible combinations. The system also ends up giving configuration data such as billing cycle schedules, event triggers, bill delivery channels and a host of other such functions.
The final activity of a perfect telecom billing system is financial management. It is extremely important to track payments and this is a major part of financial management. The process also involves mapping correspondence between payments and consumed services. The system also involves managing credit and debt collections. This is a huge process so the perfect idea will be to seek help from professional firms. They will create the perfect software so that billing the customer can be an easy job.