Billing Challenges in the Age of Converged Networks

March 6, 2000March 6, 2000

Sponsored by the Sponsored by the Alliance for Telecommunications Alliance for Telecommunications

Industry Solutions Industry Solutions Ordering and Billing ForumOrdering and Billing Forum

11 Billing Challenges in the Age of Billing Challenges in the Age of Converged NetworksConverged Networks

TecForum 1TecForum 1

Billing Challenges in the Billing Challenges in the Age of Converged Age of Converged

NetworksNetworks

Session Overview

Stephanie CowartStephanie Cowart

Manager, BillingManager, BillingBellSouthBellSouth

Megan CampbellMegan Campbell

General CounselGeneral CounselATISATIS




TecForum 1TecForum 1March 6, 2000March 6, 2000

AgendaAgendaSession Overview (9:45 am - 10:15 am)

Stephanie Cowart, Bell South

Megan Campbell, ATIS

The Loss of NPA-NXX Intelligence Due to the New Competitive Environment (10:15 am - 12:30 pm)

Betty Cockrell, Billing Concepts

Jill Blakeley, Time Warner Telecom

Andrew Darcy, UIT/Sprint

TecForum Luncheon (12:30 pm - 2:00 pm)

Solutions to the Loss of NPA-NXX Intelligence (2:00 pm - 3:00 pm)




Panel Discussion:The Loss of NPA-NXX Intelligence (3:00 pm - 3:30 pm)

Megan Campbell, ATISBetty Cockrell, Billing ConceptsJill Blakeley, Time Warner TelecomAndrew Darcy, UIT/SprintTami Spocogee, MCI WorldComRebecca Mitchell, U S WESTRandall Reeves, BellSouthDean Grady, MCI WorldComKen Havens, Sprint

Networking Break (3:30 pm - 3:45 pm)

Truth in Billing (3:45 pm - 4:15 pm)

Betty Cockrell, Billing ConceptsDean Grady, MCI WorldCom

Future Products and Services and the Resulting Billing Challenges (4:15 pm - 4:45 pm)

Jill Blakeley, Time Warner TelecomRandall Reeves, BellSouthKen Havens, Sprint





ATIS OverviewATIS Overview

Presentation Outline:

• What is the Alliance for Telecommunications Industry Solutions (ATIS)?– Mission; Scope; History; and Current

Members

• The Ordering and Billing Forum– Structure; Governing Principles; and Scope

• ATIS Web Site





ATIS MissionATIS Mission• Assist in the timely resolution of national

and international telecommunications issues

• Initiate and maintain flexible, open industry forums to address technical and operational issues

• Serve as an information source to its members

• Promote industry progress with minimal regulatory intervention





ATIS ScopeATIS Scope• Sponsors 13 Committees/Forums

– Network Interconnection; Toll Fraud Prevention; Numbering; Toll Free Resources; Ordering and Billing Access

• 2500+ participants/300+ companies• Membership

– North American and North American Numbering Plan Caribbean providers, resellers of those services, manufacturers of equipment and developers of telecommunications software for such equipment, enhances service providers, and providers of operations support used in the provision of those services





ATIS HistoryATIS History• In 1983, ATIS, formerly the Exchange

Carriers Standards Association (ECSA), was incorporated by members of the wireline exchange carrier industry in response to the divestiture of the Bell system to address interconnection, equal access and other technical issues.

• In 1993, membership was extended to domestic providers of telecommunications services with a plant investment in transport and/or switching equipment (IXC). The name was changed to ATIS.





ATIS HistoryATIS History

• In 1995, membership was expanded to North American and World Zone 1 Caribbean service providers, resellers of services with a plant investment in transport and/or switching equipment, telecommunications equipment manufacturers used for the provision of service in North American and/or World Zone 1 Caribbean countries, and enhanced service providers.





ATIS HistoryATIS History

• In 1997, membership was opened up to manufacturers of telecommunications software used in the provision of telecommunications services in North America and/or World Zone 1 Caribbean countries.

• In 1998, membership was expanded to providers of operations support used in the provision of telecommunications services.





ATIS MembershipATIS Membership• Local Exchange Carriers

• Interexchange Carriers

• Cellular Carriers

• Paging Companies

• PCS Providers

• Manufacturers

• Competitive Local Exchange Carriers

• Telecommunications Software Developers

• Operations Support Systems Providers





ATIS Committees & ForumsATIS Committees & ForumsAlliance for Alliance for

Telecommunications Telecommunications Industry Solutions Industry Solutions

(ATIS)(ATIS)

Alliance for Alliance for Telecommunications Telecommunications

Industry Solutions Industry Solutions (ATIS)(ATIS)

InternetworkInteroperability

Test Coordination (IITC) Committee

InternetworkInteroperability

Test Coordination (IITC) Committee

Committee T1Committee T1Network and Services

IntegrationForum (NSIF)

Network and Services Integration

Forum (NSIF)

TelecommunicationsIndustry Forum

(TCIF)

TelecommunicationsIndustry Forum

(TCIF)

Network Reliability Steering Committee

(NRSC)

Network Reliability Steering Committee

(NRSC)

Carrier Liaison Committee

(CLC)

Carrier Liaison Committee

(CLC)

Standards Committee O5

Standards Committee O5

Protection Engineers Group

(PEG)

Protection Engineers Group

(PEG)

Data-Aware Transport

Activity(DATA)

Data-Aware Transport

Activity(DATA)

IndustryNumbering

Committee (INC)

IndustryNumbering

Committee (INC)

NetworkInterconnectionInteroperability

Forum (NIIF)

NetworkInterconnectionInteroperability

Forum (NIIF)

Ordering& Billing

Forum (OBF)

Ordering& Billing

Forum (OBF)

Toll FraudPrevention

Committee (TFPC)

Toll FraudPrevention

Committee (TFPC)





ATIS Committee PrinciplesATIS Committee Principles• Open meetings

• Issues industry-wide in scope

• No discussions of cost, price or other anti-trust sensitive matters

• Timely and accurate notification of meeting activities (I.e., published agenda)

• Accurate record keeping

• Notification of proposed resolution

• Voluntary implementation





Ordering and Billing ForumOrdering and Billing Forum• Provides a forum for customers, providers

and vendors in the telecommunications industry to identify, discuss and resolve national issues affecting the ordering, billing, provisioning and exchange of information about access services and other connectivity and related matters.

• Meets quarterly for week-long general session meetings; February 2000 meeting had 425 registrants from almost 90 companies.





Ordering and Billing Forum (OBF)Ordering and Billing Forum (OBF)

• Billing - addresses access billing related issues and maintains the MECAB, SECAB, and CARS documents

• Directory Services - addresses issues pertaining to the ordering and exchange of end user listing information

• Message Processing Committee - addresses non-access issues relative to message processing and maintains the EMI

• Subscription - addresses national subscription issues and maintains the CARE document

• Ordering & Provisioning - addresses issues focused on the ordering and/or provisioning of access service and maintains the LSR document

• SMS/800 Number Administration Committee (SNAC) - addresses issues related to the toll free number administration

• Telecommunications Service Ordering Request (TOR) - addresses issues regarding ASR processing (i.e., mechanization plans and implementation schedules) and maintains the ASR document

Seven Standing Subcommittees





ATIS Web SiteATIS Web Site

• www.atis.org

• Contents– meeting notices, logistics and agendas– meeting notes and attachments– issues– documents– calendar of future events

• Notification of web site postings is done via e-mail exploder list (subscription instruction are found at: www.atis.org/atis/clc/obf/obfemail.htm)





For More Information...For More Information...

…visit the ATIS web site (www.atis.org) or contact:


ATIS1200 G Street NW

Suite 500Washington, DC 20005

(202) [email protected]

Mike NicholsMike Nichols








End-User BillingEnd-User Billing• Billing of business and residence

customers• Local Exchange Carrier Billing

– Third Number– Calling Card– Collect

• Interexchange Carrier Billing– 101-XXXX– Long Distance Charges on Local Phone

Bill





Access BillingAccess Billing

• Telephone Companies Bill Each Other for Use of Facilities

• Long Distance Carriers Use Facilities of Local Companies

• Local Companies Partner to Complete Local and intraLATA calls





Stephanie CowartStephanie Cowart

BellSouth600 N. 19th Street

28th FloorBirmingham, AL 35203


Contact InformationContact Information





March 6, 2000March 6, 2000





Billing Challenges in the Billing Challenges in the Age of Converged Age of Converged

NetworksNetworks

The Loss of NPA-NXX Intelligence Due to the New Competitive

Environment

Rebecca MitchellRebecca Mitchell

ManagerManagerUS WestUS West Jill BlakeleyJill Blakeley

Senior ManagerSenior ManagerTime Warner TelecomTime Warner Telecom

Andrew DarcyAndrew Darcy

Sr. Management ConsultantSr. Management ConsultantUnited Information TechnologiesUnited Information TechnologiesProject Development Manager,Project Development Manager,

SprintSprint

Betty CockrellBetty Cockrell

Industry Relations LiaisonIndustry Relations LiaisonBilling ConceptsBilling Concepts





AgendaAgendaSession Overview (9:45 am - 10:15 am)

Stephanie Cowart, Bell South

Megan Campbell, ATIS

The Loss of NPA-NXX The Loss of NPA-NXX Intelligence Due to the New Intelligence Due to the New Competitive Environment Competitive Environment (10:15 am - 12:30 pm)(10:15 am - 12:30 pm)

Betty Cockrell, Billing ConceptsBetty Cockrell, Billing Concepts

Jill Blakeley, Time Warner TelecomJill Blakeley, Time Warner Telecom

Andrew Darcy, UIT/SprintAndrew Darcy, UIT/Sprint

Rebecca Mitchell, US WestRebecca Mitchell, US West

TecForum Luncheon (12:30 pm - 2:00 pm)

Solutions to the Loss of NPA-NXX Intelligence (2:00 pm - 3:00 pm)




Panel Discussion:The Loss of NPA-NXX Intelligence (3:00 pm - 3:30 pm)

Megan Campbell, ATISBetty Cockrell, Billing ConceptsJill Blakeley, Time Warner TelecomAndrew Darcy, UIT/SprintTami Spocogee, MCI WorldComRebecca Mitchell, U S WESTRandall Reeves, BellSouthDean Grady, MCI WorldComKen Havens, Sprint

Networking Break (3:30 pm - 3:45 pm)

Truth in Billing (3:45 pm - 4:15 pm)

Betty Cockrell, Billing ConceptsDean Grady, MCI WorldCom

Future Products and Services and the Resulting Billing Challenges (4:15 pm - 4:45 pm)

Jill Blakeley, Time Warner TelecomRandall Reeves, BellSouthKen Havens, Sprint





IntroductionIntroduction

• Overview

• What is changing in the industry

• What problems do they cause

• Which processes are impacted

• Discuss potential solutions





Contributing FactorsContributing Factors

• Telecommunications Act of 1996– Basic Competition

• Local Number Portability (LNP)• Within the Rate Center• Portability Outside the Rate Center (PORC)• Service Type Portability

• Resale• Local• Long Distance





Contributing FactorsContributing Factors

• Unbundled Network Elements (UNE)

• Numbering Issues– Pooling– Splits/Overlays– Alpha-Numeric Company Identifiers





Basic ProblemsBasic Problems• Telephone numbers no longer are Carrier

specific

• Telephone numbers are losing geographic significance

• Numbering information is needed, near-real time, at the individual telephone number level

• Existing Industry databases do not support these needs





IssuesIssues

• Unbillables– Aged Billing– Misdirected Records– Guiding Issues/Erroneous Casual Billing– Fraud Implication

• Uncollectibles– Denied Billing– Customer Service to Wrong Provider





Issues (cont.)Issues (cont.)

• Incorrect Rating– Retail & End-User– Settlement– Wholesale & Access – Geographic Discounting– Journalization & Verification






• Taxing

• Local Determinations– Local Measured Services/EAS– Local Service and EAS MRCs– Rate Center Consolidations

• Regulatory Requirements






• Service Provisioning/Availability

• Treatment

• Historical analysis & trending

• Industry Data set changes





Basic Problems (Review)Basic Problems (Review)

• Numbering information is needed, near-real time, at the individual telephone number level

• Existing Industry databases do not support these needs





What Is The Problem?What Is The Problem?• Local Competition Changes Casual Calling

• Creating Unbillable Alternately Billed Calls – Collect, Third Party & Calling Card– Casual 101-XXXX Dialed Calls (Dial Around)– Anytime LD Carrier Doesn’t Know the End User

or relies on LEC billing to collect charges

• Many CLEC’s Can’t or Won’t Support Billing and Collection Agreements





The Fraud IssueThe Fraud Issue

• The Inadequacies Inherent in Local Resale and UNE are Creating Many Opportunities for Fraud!

• The ‘Fraudsters’ Know This!

• Prison Inmates - “Friends & Felons Program”

• “Free Long Distance”





Examples of Fraud ProblemsExamples of Fraud Problems

• Prison Inmates

• Unscrupulous Marketing Practices by Certain Prepaid Local Resellers

• Fraudulent Outbound Tele-marketing Activities

• Individual Consumers Exploiting a “Loop Hole”





Limit ExposureLimit Exposure

• Control Potential Losses

• Track Activity by Billing Number– Call Volume– Dollar Amount– Total Minutes





Collection ConcernsCollection Concerns

• How Do I Get This Message on the End User’s Bill?

• Is There a Billing and Collection Agreement?

• What Will the Bill Look Like?

• Will I Get Paid?





Identify The Billing CompanyIdentify The Billing Company

• Who Does the End User Think His Telephone Company Is?

• Who Does the Network Think the Telephone Company Is?

• It Depends on the LEC!– Facilities Based – Non-facilities Based (Local Resale)– The Hybrid - UNE (Unbundled Network

Elements)





Facilities Based CLECFacilities Based CLEC

• LRN (Location Routing Number) – LNP Query on Originating, Terminating or

Billing Number

• LRN => NPA-NXX => OCN – The Code Holder of the Exchange OCN

on the TPM

• What If the Ported Number is Resold?





Local Resale and UNELocal Resale and UNE

• The LRN Belongs to the Wholesaler– Incumbent LEC– Facilities Based CLEC

• Options for Identifying the Billing Company– Incumbent LEC Rejects the Call– (EMI Return Code 50)





Return Code 50 Rejects Return Code 50 Rejects





EMI Return Code 50EMI Return Code 50

• The Reject Code Used by the Incumbent LEC When the End User’s Account Belongs to a Different LEC

• The New Operating Company Number Is Usually Provided

• Now What?





OptionsOptions• Direct Bill the End User for the Calls

– Finding Customer Name and Address– Generating a Bill– Will They Pay?

• Send Messages to the New LEC– Does The CLEC Support B&C?

• Block End User’s Future Calls– How Long Should I Block?– Will He Change LEC’s Again?





Information Transmitted Information Transmitted During CallDuring Call

• Collect, Third Party & Calling Card– Existing Processes Don’t Provide

Complete Data at All Times

• 101-XXXX– No Satisfactory Solutions Currently Exist





Some ConclusionsSome Conclusions

• Deficiencies in Local Resale and UNE Processes Have Created New Opportunities for Fraud

• Further Solutions Need to Be Identified





ILEC IssuesILEC Issues

• Unbillables– Aged Billing– Misdirected Records– Guiding Issues– Fraud implication

• Uncollectibles– Denied Billing





ILEC Issues (cont.)ILEC Issues (cont.)TOPIC ISSUES SOLUTIONS IMPACTS

1) Historya) LNPb) UNEc) Resellersd) Facilty

Based

NPANXX versus 10digit (1a,1b,1c)

Telcordia Billing Validation

Databases Customer

Account

Distribution, Billing &Settlements (1a,1b,1c,1d)

NPAC identifies routing &distribution for LNP

Use Customer Account toidentify accountowner/co-provider (1b,1c)

Modified existingdistribution & Settlementprocesses (1a,1b,1c,1d)

Expense to identify messages forCLEC (1b,1c)

Expense to manually validate &correct settlements (1b,1c)

2) Unbillablesa) Agedb) Misdirected/

GuidingErrors

c) Fraudd) Uncollect-

ibles

Wrong recipient Incumbents (2a,2b)

CLEC (2a,2b)

IC (2a,2b,2c)

Charges difficult tosustain and/or collect(2a,2b,2c,2d)

Manually correct andrebill as much as possible(2a,2b)

Return Code 50 on ICmessages (2b,2c)

NPAC, BNA, LIDB (2A,2B,2C)

Expense to investigate andcorrect or loss if unable to rebillor sustain(2a,2b,2c)

Expense to retain account ownerfor returning IC messages (2b,2c)

Fraud is not an issue

3) Taxing / LocalDeterminations

a) LNPb) Facility

Based

NPANXX used todetermine taxing

jurisdictions Local Area Calling

Service Address used todetermine taxing jurisdictions Local Area Calling

Possibility of incorrect taxing

Customers billed for longdistance charges instead of LocalCall





ILEC Issues (cont.)ILEC Issues (cont.)

• REGULATORY REQUIREMENTS– ILEC must provide 5 activities to Co-

Provider• Preordering• Ordering• Provisioning• Maintenance and Repair• Billing





ILEC Issues (cont.)ILEC Issues (cont.)– Provide data information to co-provider so

that they can bill their customer• Summary Bill• Usage• Loss & Completion

• Daily File that includes Order Number, Date and Service Order Activity

– Goal is to meet all requirements for performance as identified in the Telecommunications ’96 and to be compliant with the 271





ILEC Issues (cont.)ILEC Issues (cont.)

• Taxing

• Local Determinations– Local Measured Services/EAS– Local Service and EAS MRCs– Rate Center Consolidations

• Service Provisioning/Availability

• Regulatory Requirements

March 6, 2000March 6, 2000





The Loss of NPA-NXX The Loss of NPA-NXX Intelligence Due to the New Intelligence Due to the New Competitive EnvironmentCompetitive Environment

Andrew Darcy

UIT/Sprint





CLEC IssuesCLEC Issues

• All of ILEC Issues Plus:– Identification of Serving and Calling Areas

– Tracking of Customer’s Services and Associated Access Methods (UNE, TSR, FBLS)

– Pricing Decisions

– Size

March 6, 2000March 6, 2000





The Loss of NPA-NXX The Loss of NPA-NXX Intelligence Due to the New Intelligence Due to the New Competitive EnvironmentCompetitive Environment

Jill Blakeley

Senior Manager

Time Warner Telecom





Access Billing ComponentsAccess Billing Components• Notification

– Industry developed process that requires companies to notify other companies operating in the same area that reflects information needed to establish billing

• Bill Rendering– Processes developed by individual companies to render

bills for use of their network.– Bills are compliant to Industry developed formats– Billing includes components that are flat rate and rate per

minute

• Bill Validation– Processes developed by individual companies to validate

that the billing received is accurate





Access Billing IssuesAccess Billing Issues

• NPA/NXX Intelligence Used For:– Routing of Traffic/Calls– Identification of Company Originating the Call– Identification of Company Terminating the Call– Determination of Jurisdiction of the Call for Rate

Application– Identification of Type of Company Owning

NPA/NXX for Bill Process Determination– Identification of Company for Record Exchange

Used for Bill Rendering and Bill Validation





Access Billing IssuesAccess Billing Issues

• Unbillables– If a company using your network to originate or terminate

traffic,can’t be identified, Bill Rendering can’t be accomplished, resulting in loss of revenues.

– If a company doesn’t have recording capabilities or information is not transmitted within the traffic signaling path into or out of your network, receipt of records from another company are required to perform Bill Rendering. The company providing the records must be able to identify you to provide the records. If identification can’t be made, Bill Rendering can’t be accomplished resulting in

loss of revenues. • Industry has developed guidelines for record exchange.






• Misrouted Network Messages– Companies not performing query dips for

number portability information during the call set-up at the origination of calls, may experience calls that don’t complete or are delayed.

– Companies not performing query dips for number portability information during call set -up at the origination of calls, may prohibit accurate billing for use of companies network for their company and other companies.






• Incorrect Rating– Type of Company (Cellular, LD, LEC, CLEC,

ULEC) determines the billing relations for Bill Rendering

– Type of Company identification can’t be made, either Bill Rendering will be incorrect or not rendered at all.

– May affect correct tracking and journaling

– Type of Company identification not accurate, it will affect Bill Validation processes creating dispute activities






• Taxing– If Jurisdiction of traffic not identified, it

could result in inaccurate tax application on Access bills

– If Type of Company not identified, it could result in application of Taxes incorrectly






• Local Determinations– Jurisdiction of traffic essential for

accurate access rate application– In some areas further identification of

traffic is required for specific rate application

• ISP• Routed Direct or via Tandem





Access BillingAccess Billing• Service Provisioning/Availability

– Identification of companies network meet-points needed for correct rate element application in Bill Rendering and Bill Validation

• Transit Issues– More than two providers are involved in

the routing of a call






• Regulatory Requirements– FCC and State PUC’s have issued directives for

Access Bill Rendering processes• In 1984, (Divestiture of Bell Systems and AT&T) the

FCC established mandate for the Industry to develop guidelines for Meetpoint Billing Processes

• In 1999, Ohio PUC issued directives for Billing Relations for ISP traffic

• In 1999, NY PUC issued a mandate for the Billing Relations for unbundled elements





Contact InformationContact Information

Andrew DarcyAndrew Darcy

UIT/Sprint9225 Indian Creek ParkwayOverland Park, KS 66210


Betty CockrellBetty Cockrell

Billing Concepts7411 John Smith Drive

Suite 200San Antonio, TX 78229

(210) 949-7170

[email protected]

Jill BlakeleyJill Blakeley

Time Warner Telecom10475 Park Meadows Drive

Littleton, CO 80124(303) 566-5830

[email protected]

Rebecca Mitchell

US West1801 California, Room 450

Denver, CO 80202(303) 965-3796

[email protected]

Documents

Billing Challenges in the Age of Converged Networks