Abstract
"Partner settlement is the fastest growing part of the partner and interconnect billing segment."
Interconnect and partner billing software systems have evolved rapidly to
automate the settlement process between communications service providers
(CSPs) and partners who provide part of the service. Interconnect settlement
software systems enable CSPs to accurately record the volume and value of
traffic (primarily voice calls) that cross their network borders. CSPs
terminating incoming traffic from international destinations are able to claim
a share of the revenue from the originating CSP. Partner settlement software
systems provide equivalent capabilities for non-telecom partners who provide
content, applications and other services. Partner settlement is the fastest
growing part of the partner and interconnect billing segment.
We identify three major areas of partner and interconnect settlement:
- call termination settlement
- mobile roaming settlement
- partner settlement with content providers and other, non-telecoms,
partners.
Call termination settlement is required when a call is made from one CSP' s
network that requires termination on another CSP' s network. The originating
CSP will bill the end customer, but it will be required to pay one or more
CSPs involved in the termination of the call. This is the oldest settlement
area, which has grown dramatically in the last two decades with the
deregulation of telecoms markets and the proliferation of mobile CSPs. It is
now a mature area, but the magnitude of the settlement charges (a significant
percentage of many CSPs' revenue) creates opportunities for optimisation of
the settlement infrastructure and process. Most call termination settlements
have been provided by third-party clearance companies, but CSPs are starting
to deploy their own platforms to support settlement with major partners.
Mobile roaming settlement is required where the CSP' s subscriber has roamed to
another CSP and makes a call. Unlike interconnect, in which settlement is
usually performed by the CSP, settlement for roaming calls commonly involves a
clearing house or exchange, such as MACH or Syniverse. There are two main
types of clearing houses used by mobile CSPs: data and financial. Some CSPs
use clearing houses to exchange roaming data, but prefer to settle directly
using their own settlement solution; others choose to outsource both data
exchange and settlement to a clearing house.
Partner settlement for service and content provided by non-telecoms partners
is a rapidly changing and strategically important area. In order to compete as
mobile broadband is rolled out, CSPs need to offer content, social networking,
Web 2.0 services, advertising, search, location, gaming and other innovative
services. There are established Internet and media companies that CSPs must
partner with to deliver these services. CSPs must also attract smaller
innovative partners to meet customer expectations. Partner settlement systems
address these types of relationship.
This report gives a view of the current state of partner and interconnect
billing, a forecast of spending growth and an extensive explanation of the
changes that are taking place as this market shifts to include new types of
partner.
The Interconnect and partner billing outlook provides a detailed five-year
forecast. The forecast is broken out by region and service types, providing
forecasts for eight different segment views. The report includes market shares
of the leading suppliers and explains the overall business environment for
partner and interconnect billing software. The report provides a definition of
the different types of partner an interconnect settlement requires.
The report addresses the impact of the following trends:
- High mobile subscriber growth
- Declining voice revenue and the drive for cost savings
- Proliferation of non-telecom partners
- Increasing number of bill disputes
- Introduction of new complex IP-based services" Just-in-time buying and
selling of capacity
- Network sharing
- Rate proliferation and change.
The report includes a table comparing the leading partner and interconnect
billing solution suppliers and a chart of the leading suppliers' market
shares. The market share section includes explanations of the positioning of
the six leading suppliers.
Table of Contents
Executive summary
Market Share
Forecast
- Forecast by communications service
- Forecast by region
Market drivers and inhibitors
- Drivers
- High mobile subscriber growth
- Declining voice revenue and drive for cost savings
- Proliferation of non-telecom partners
- Bill disputes are increasing
- New complex IP-based services
- Just-in-time buying and selling of capacity
- Infrastructure sharing
- Rate proliferation and change
- Business inhibitors
- Inertia combined with other priorities
- Lack of expertise
- Partner settlement projects are low in budgeting priority
Business environment
- Interconnect settlement
- Roaming settlement
- Content, application and advertising revenue share
- Buying an entirely new system
- Buying an adjunct system or module from existing interconnect or retail
billing supplier
- Building a solution in house
- Outsourced service
Market definition
- Partner and Interconnect Billing Definition
- Interconnect billing
- CABS billing and reciprocal compensation in the US market
- Roaming billing
- Content and application partner billing
Vendor summaries
- Amdocs
- Comptel
- Convergys
- Ericsson
- I-ConX
- Intec
- Oracle
- Sitronics
- Subex
- Telarix
- Valista
Partner billing suppliers
Recommendations
- Recommendations for CSPs
- Recommendations for vendors
List of figures
- Figure 1: Partner settlement forecast
- Figure 2: Partner settlement market share
- Figure 3: 2008-2013 Partner settlement forecast
- Figure 4: 2008-2013 Partner settlement forecast by communications service
- Figure 5: 2008-2013 Partner settlement forecast by region
- Figure 6: Industry convergence
- Figure 7: Partner and interconnect billing in the Analysys Mason
segmentation
- Figure 8: General partner and interconnect scenario
- Figure 9: Interconnect scenario
- Figure 10: Mobile roaming scenario
- Figure 11: Content and application partner billing
List of tables
- Table 1: Comparison of partner and interconnect billing suppliers
