Mobile Internet ChargingMobile Internet Charging

Jorma Heinonen, Deputy Managing DirectorJorma Heinonen, Deputy Managing DirectorTelecom ForumTelecom Forum

Helsinki 04 st October 2000Helsinki 04 st October 2000

COMPTEL 2

Presentation agenda

� Comptel background

� Mediation layer in OSS today

� Operators role in future

� Mobile internet charging

� Future outlook

� Comptel m-services platform

COMPTEL 3

COMPTEL GROUP

Comptel PlcSubsidiaries: Associated Company:• Comptel Communications Sdn Bhd, Malaysia• ComptelCommunications Inc, USA• Comptel Communications Oy, Finland• Probatus Oy, Finland

• Arcus Software Oy, Finland

Representative Offices:• Comptel Plc RO, Hong Kong• Comptel Communications RO, Australia

• Business Tools Oy

COMPTEL 4Area

EMEAEMEAJorma TurunenJorma Turunen

AMERICASAMERICASMikael NygårdMikael Nygård

ASIA PASIFICASIA PASIFICMark MatthewsMark Matthews

MDS Business Jorma Heinonen

HongKong

Sydney

KL

HelsinkiRegion

Comptel AREA Organisation

Arlington Virginia

Peking

COMPTEL 5

Softwarevendors

• Andersen Consulting• CSC• Cap Gemini• Compaq• debis Systemhaus• EDS• Hewlett-Packard• IBM• Logica• Lucent

• Compaq• Hewlett-Packard• IBM• Sun

• Nokia (OEM)

• Amdocs• Geneva • Hewlett-Packard• IBM• INTEC• KSCL• Kenan• LHS• Logica• More Magic Software• Oracle• Portal• TCS

Global Partner Network

System-integrators

Equipmentvendors

COMPTEL 6

Over 160 MDS Customers in 47Countries

LuxembourgLuxembourgNetherlandsNetherlandsNorwayNorwayPolandPolandPortugalPortugalRomaniaRomaniaSlovak Rep.Slovak Rep.SpainSpainSwedenSwedenSwitzerlandSwitzerlandTurkeyTurkeyUKUK

CanadaCanadaUSAUSA

BrazilBrazilEcuadorEcuadorMexicoMexicoPeruPeruVenezuelaVenezuela

Saudi ArabiaSaudi Arabia

ChinaChinaHong KongHong KongIndonesiaIndonesiaMacaoMacaoMalaysiaMalaysiaPhilippinesPhilippinesSingaporeSingaporeTaiwanTaiwanThailandThailand

AustraliaAustraliaFijiFijiNew ZealandNew Zealand

AustriaAustriaBelgiumBelgium

Czech Rep.Czech Rep.DenmarkDenmark

EstoniaEstoniaFinlandFinlandFranceFrance

GermanyGermanyGreeceGreeceIrelandIreland

ItalyItaly

NamibiaNamibia

IndiaIndiaPakistanPakistanRussiaRussia

COMPTEL 7

World Before Mediation

IT systems

Networkelements

Alcatel, Aldiscon, Cisco, Comverse, Ericsson, Lucent,Nokia, Nortel, Sema, Siemens ...

HLR, MSC, VMS, EIR, OTA, SCP,….

COMPTEL 8

Life is Easier with Mediation

IT systems

Networkelements

Alcatel, Aldiscon, Cisco, Comverse, Ericsson, Lucent,Nokia, Nortel, Sema, Siemens ...

HLR, MSC, VMS, EIR, OTA, SCP,….

Mediation

COMPTEL 9

Mediation software

• Billing• Customer care• Fraud

management

• Customerbehaviour analysis

• Qualitymanagementsystems

IT systems Networkelements

Usagecollection

Serviceprovisioning

COMPTEL 10

Future Challenges…morecomplexity..more players

UMTS

Customer Care & Billing System(s)

Comptel Mediation

GPRS

SGSN GGSN

HLR

CG

MSC

SMSCGSM

IP-Network

SW/SSP

SCP

SW/SSP

IP-GW

DialUp’s

PSTN/IN

ContentServicesEdge-R

RoutersEdge-R

VMSC

DSLAMxDSL

ISP’sSP’s

WAP

COMPTEL 11

Telecom Services in Finland

0

5

10

15

20

25

30

1985 1990 1995 2000 2005 2010

ContentServicesInfra

Source: Professor Olli Martikainen

Billion FIM

COMPTEL 12

Future Players?

…and others?

BanksPayment

Portals, etcContent

MerchantsGoods

Credit CardsPayment

TelcoAccess

ASP providersServices

Who ?

COMPTEL 13

NetworkOperator

ContentProvider

Provides value-added information

Portal

NetworkOperator

Managed Gatewayto the Internetoffering advertisingand content revenue

Trusted Partner Provides secure and

trusted transactionsProvidesapplications such

as CorporateAccess, Wireless

Web Access

ApplicationProvider

Many new roles for the Operator

Connectionand Session

Provider

TelephonyProvider

COMPTEL 14

Telco Positioning Options

Access provider

Phone-bill based Micro-payment platform

Portal Service Provider

Service Portal

Content provider

Involvement

Complexity

Opportunity

COMPTEL 15

Impact on Business

� Services & Content is a business opportunity

� Access - Commodity product brings less margins

� Mobility is a must

COMPTEL 16

Mobile Evolution

� 59% of GSM operators will launch WAP before8/2000

� 67% of GSM operators will launch GPRS before2/2001

� 3G/UMTS services will be launched mid 2002

� Data will exceed voice in mobile in 2.5 years

� Mobile e-commerce will beprimary revenue generatorin 3 years

Source: ADC Group, February 2000

COMPTEL 17

Duration“Always on”, no point charging

DistanceReplace with Bandwidth, Quality of Service

Time of the DayReplace with “How real time information”

MobilityAdded value, but becoming a commodity

Information/ContentThe real value

Charging is Changing

COMPTEL 18

Intelligent Mediation is Essential

Service Usage• Network usage• On-line payments/Transactions

Billing & settlements

Balance Control• event-based

pre-paid & costcontrol

Billing Mediation• Validation• Pre-rating• Correlation• Aggregation

COMPTEL 19

New Mobile Internet Services:Main Impacts on Mediation Layers

� 20-100 times more events, extremely long ‘calls’!==> high performance and aggregation are required

� Charging no longer based on duration!==> volume & content & location based charging==> need for new thinking in Mediation & Billing

� More players in the value chain==> more formats and new interfaces

� Everything in real time==> high performance, high availability and auditability

COMPTEL 20

Usage Information and Mediationfor Mobile Internet Charging

Mediation software neededusage aggregation correlation

collectionFlat fee √ √Monthly package √ √

Monthly package √ √+add. usage data Network usage √ √ √Charging for content √ √ √Revenue sharing √ √ √Roaming √ √ √C

h arg

ing

t ype

COMPTEL 21

Example: GPRS on Phone Bill

Mrs. SmithSubscription GSM & GPRS

MB/ Unit# Min Price SUM �

Voice calls - National Peak 9-17 8 10 0,35 3,50Off-Peak 20 55 0,20 11,00

Short Messages 17 0,15 2,55GPRS Data

Peak 9-17 48 0,04 1,92Off-Peak 138 0,02 2,76Horoscope 9 0,50 4,50Stock Info 1 9,99 9,99

TOTAL 36,22

COMPTEL 22

Comptel’s Position in MobileInternet Market

� R&D’s focus on Mobile Internet since 1998. FirstGPRS/IP customers in 1999

� Several significant MDS for GPRS/IP deliveryagreements (BT Cellnet, Sonera, Radiolinja, RadioMobil)

� GPRS Charging Gateway products deliveredsince Q1/00

� Comptel Chinchilla, Online mediator, waslaunched in Q3/2000

COMPTEL 23

From Traditional Mediation toOnline Mediation

ComptelChinchilla

Information

M-shops

Entertainment

ComptelMDS

Billingsystem

GPRSnetwork

GSMnetwork

COMPTEL 24

Example 1: Online Payment

Credit Card

WAP

Sendpayment

Provideservice

Login

Ask for confirmation

Request service

Tellprice

Allow service

Confirm price

ComptelChinchilla

COMPTEL 25

Benefits of Comptel Chinchilla

ComptelChinchilla

New opportunityMore Value

TelecomTelecomoperatoroperator

SecurityConvenience

Easy startupLow investment

EndEnduseruser

ContentContentproviderprovider

COMPTEL 26

Comptel MDS Comptel Chinchilla

From Traditional Mediation to Online Mediation

Take the Next Step in Value Chain

COMPTEL 27

Billing &Payment Management

Comptel m-services Platform

Transaction Database

MDS Credit Guard

Mediationengine

m-servicesm-shops

m-services

Content, media

AuthenticationPKI- Service

GPRS / IP / 3G-networks

GPRS-network

GSM-network

COMPTEL 28

Billing &Payment Management

Establishment of a Sales Company

Transaction Database

MDS Credit Guard

Mediationengine

m-servicesm-shops

m-services

Content, media

AuthenticationPKI Service

GPRS / IP / 3Gnetworks

GPRSnetwork

GSM network

Mobile Internet

solutionsfor

Global Market

COMPTEL 29

Comptel future outlook

� The growth is expected to continue on the mediationsoftware market, due to the changes in the role ofmediation software and in technology (GPRS, IP)

� The roll-out of the GPRS technology and services areplaying an important role in the growth strategy.

� There are uncertainties related to 3G mobile networks

� “Time to market” is increasingly important

� Comptel’s growth target for the year 2000 revenue is40-50%

� EBITDA margin target for the fiscal year 2000 has beenraised from 30% to 35-40% - which is on the top in theindustry

COMPTEL 30

Comptel Today; Providing thefuture telecom software solutions

GlobalTelecomsoftwarecompany

Highprofitability

Stronggrowth

Global partnersas delivery channel

R&D investments for next generation mobile

Goodreferences

COMPTEL 31

Contact information

Contact information

www.comptel.com

Jorma Heinonen, Deputy Managing Director

+358 9 700 11 384, (m) +358 50 2819

Henriikka Huunan-Seppala, Marketing assistant

+358 9 700 11 507

Comptel,Ruoholahdenkatu 4, FIN 00180 Helsinki, Finland

COMPTEL 32

Support Slides

COMPTEL 33

Comptel Net Sales 1-6/2000

11,4

5,0

12,4

13,1

15,0

24,1

7,8

10,7

9,9

19,1

0,0

14,5

29,1

43,6

1997 1998 1999 1H/99 1H/00

Domestic ExportEURm

COMPTEL 34

Limit exceeded, please reset !

Telecom network

Cost Control

“BlockCalls”

Customer Care &Billing System

Mediation Services

MDS Credit Guard - To Serve and ToProtect

Rated usage data

COMPTEL 35

Long Term Informationfor Several Purposes

Billing &Payment Management

MDS/AMD-DB

MDS/AMD

� Data Aggregation� Duplicate Checking� Loading

Fraud ControlInter-operator

ClearingBusinessAnalysis

� Standard SQL Interface� Delivery Utility

Fault Analysis

COMPTEL 36

MDS Pricing Models

New Basic Licensesbased on network type

Mobile,Fixed,IP,GPRS,Satellite

Volumecomponents

GPRS extension

Network Interfacelicenses

Application Interfacelicenses

GPRS CGW

Credit Guard Basic licenses

Broker pilots

Comptelservices

TrainingInstallationConsulting

Delivery

COMPTEL 37

Competitors

Billing Service GPRSmediation Provisioning Mediation

COMPTEL √ √ √ Global, independent

ACE*COMM (USA) √ Mainly USA

Architel (CND) √ (Nortel acquisition) Global

EHPT (S) √ √ √ Ericsson 60%

ICL (UK) √ Europe, Asia Pacific

MSI (UK) √ √ (Marconi proposal) Mainly USA

Tertio (UK) √ √ √ Mainly Europe