Billing: Prepaid and Postpaid
About Billing

The choice of billing (prepaid, advance or credit) depends on the features of the billing system deployed by a telecom operator. What billing optimization technologies are in demand today? What do developers offer? What prospects for billing systems do they see? To answer these questions, we consulted leading specialists and heads of the largest billing system manufacturers, namely:
V. PHILIPIEV, Product Manager, «Berkut»
M. TIGIN, Marketing Director, «Telecom Design» CJSC 
A. MALIS, Vice President, Corbina Telecom 
A. MAKLAKOV, Vice President and Technical Director, CBOSS Association 
A. SMOLYAK, Project Manager, Tario 
V. SAMSONOV, CEO, «T-Soft-Billing and Technologies»
M. CHERNYKH, New Technologies Director, «Peter-Service» CJSC 
A. BOBROVSKY, Leading Product Development Manager, «Protek»

IKS, #7, July 2004

IKS: What technologies are deployed for prepaid services by Russian telecom companies, and what are the criteria of selection, peculiarities, advantages and disadvantages?

V. PHILIPIEV: Prepaid subscribers spend the money which is added to their accounts in advance. As soon as the account balance reaches zero, the subscriber is suspended. Credit (postpaid) subscribers pay for the services they use at the end of the report period. For subscribers, the advance payment method is identical to prepaid. However, in this case they are billed not in real time, but after the CDRs, generated after service provision, are processed. The credit and advance payment methods are postpaid from the point of view of billing.
Initially, telecom operators based their BSS systems on the billing systems that ensured high quality of credit and advance billing. When an operator enters the mass segment of the market where prepaid subscribers prevail, the operator faces the need to serve a depersonalized mass subscriber. Prepaid services become very popular when the competition causes operators to attract the «low loyalty» type of mass subscriber.

M. TIGIN: The experience of our company shows that to choose the right hardware platform and software solution based on which services will be implemented, it is necessary to consider flexibility and adjustability, as well as scalability, portability, reliability, performance, and open architecture. The system shall support the basic signaling protocols: 2CAS (Channel-Associated Signaling), EDSS-1 (PRI-ISND), SS7 (MTP, ISUP), dial-up, and VoIP access services. The system must be based on a special switch with CPB function. It is very important to forecast the traffic growth. Promoting prepaid services on the market may require more resources in comparison to what was planned, which is why the cost of the system expansion is very important when choosing a hardware platform.

A. MAKLAKOV: At present, several concepts of network construction for prepaid services are deployed in Russia.
The Service Node (SN) technology is based on soft-switches. It implies that calls go through a single network element or a node, while the call rating is performed in real time by monitoring the connection with the simultaneous use of two channels. That's why this solution is often called a loop. The advantages are: independence of the network infrastructure and the relatively low cost of the initial system installation. The disadvantages are: current expenses for transmission and infrastructure, load on the switching system, considerable cost of expansion, and restricted capability to render some services (roaming, for example). The solution is suitable for operators serving prepaid subscribers and can support up to 500 thousand prepaid users.
The Intelligent Network (IN) technology enables network construction with a set of flexible tools. Such tools allow service provision irrespective of the network structure. The specific feature of this technology is that a part of the call servicing algorithm is transferred from the Service Switching Point (SSP) to the Service Control Point (SCP). This simplifies the introduction and modification of value-added services. The CAMEL protocol, an IN extension for mobile solutions, enables full-fledged roaming for prepaid subscribers. The disadvantage is: the comparatively high cost of the initial system installation. This is compensated by the moderate cost of further expansion per subscriber. The advantages are: a wide range of features that enable prepaid platforms to provide services to postpaid subscribers; system flexibility and scalability, support of an unlimited number of prepaid subscribers, and convergent processing of prepaid and postpaid subscriber’s data.
The Advice of Charge technology (included in GSM Phase 2) permits one to analyze the cost of outgoing calls and the account balance in real time, based on the SIM card information, and to cut off calls if the balance is insufficient.
Hot billing is an accelerated type of the traditional postpaid billing. It enables collection and processing of CDRs in near real time. It is implemented by using a real-time DBMS and updates of the program logic of switching systems. However, hot billing is close to prepaid only ideologically. It has all the disadvantages of postpaid: it retains the probability of subscriber debt (the problem of last call); there is no function of real-time balance control.
In conclusion, we can say that IN-based solutions are the most cutting-edge and promising. The loop solution (SN) is no good for small operators. Increasing the subscriber base makes it more advantageous to install IN components on the switch. The Advice of Charge exposes the operator to too high a risk in becoming a victim of fraud on the part SIM card owners, therefore this solution is often used in combination with hot billing.

V. SAMSONOV: There are not so many implementations of the prepaid technologies used nowadays, namely: Advice of Charge, Service Node, Intelligent Network, and Hot Billing. We extensively use the last two in developing solutions for service providers. They enable support of a large number of prepaid subscribers, prepaid roaming and convergent collection of prepaid and postpaid CDRs.

M. SAMSONOV: Prepaid products for fixed and mobile operators were created as applications for the subscribers who, for certain reasons, could not register complex legal relations with telecom operators. This determined the basic requirements and restrictions for prepaid platforms: no subscriber obligations to pay the debt; easily concluded contracts or no contracts; limited service, for example: restricted availability of information on the services provided, no bills, etc.
I understand a prepaid platform as a hardware and software solution that enables subscriber identification, service authorization and real-time balance control, as well as the processing of events as soon as they are received. Real-time service provision management requires the system’s response to an event within a specified period. Online processing of events in terms of prepaid platforms means that the requested service authorization is always performed after debiting the balance once the service is provided.
Most home billing systems support prepaid operation with hot disconnection and are real-time systems (processing of events takes from several minutes to several hours), but do not meet the event-processing requirements.

IKS: What is the technical and economic need for deploying prepaid technologies for fixed and mobile operators?

V. PHILIPIEV: Prepaid technologies appeared in the West as an alternative to the credit form of service: the subscriber could purchase a prepaid package and use mobile services without having to sign a contract. The operator’s interest in such subscribers is obvious, as they increase the amount of the services delivered. As for subscribers, they were satisfied with being able to control their expenses. This resulted in a prompt increase of the share of prepaid subscribers, and now it varies between 50% and 90%, depending on the country.
Now, when the share of prepaid subscribers becomes considerable, providing services for this segment becomes a self-sufficient part of business. For example, Bee Line GSM initially intended to provide prepaid services to a large number of subscribers.
Fixed-line operators use prepaid technologies to support service telephone cards (STC). This is a niche market offer and it is rather narrowly used.

A. MALIS: The positioning of Corbina Telecom as a multi-purpose telecom operator determines the technological and economic need to deploy prepaid technologies. We already have about 50 thousand permanent prepaid subscribers.

A. MAKLAKOV: Deployment of prepaid technologies is determined by economic expediency rather than by technical necessity, in other words, by the extent the operator needs a service that absolutely eliminates the probability of debt. If debt is probable, hot billing will be enough. In the opposite case, it is required to use a prepaid solution that disconnects calls when the balance depletes, instead of barring future calls or services. In any case, when choosing a prepaid solution, it is necessary to consider the availability or unavailability of creating a single bill for all services (voice, telematic services, data, Internet access, content services), apart from reliability and performance.
As the call rating speed is crucial for prepaid platforms, they don’t as a rule support complex billing schemes. At the same time, attractive tariffs are one of the most important criteria of competitiveness. Using up-to-date services in prepaid technologies is important as well. Our CBOSSprepaid and CBOSSrtBilling products provide an unlimited range of billing options, implement a set of up-to-date services (GPRS, WAP, SMS, MMS, USSD, etc.), and provide all methods of balance recharging (cash payment, credit cards, teller machine payments, external payment systems, direct payments from mobile phones, etc.)

A. SMOLYAK: Prepaid platforms best of all meet the conditions of the Russian market. For the majority of clients, it is a convenient payment mode which eliminates the necessity of regularly visiting the bank to pay the bills, and allows clients to fully control their expenses for long-distance and international calls irrespective of whether the phone has long-distance access.

V. SAMSONOV: Prepaid technologies require practically no additional investments. Up-to-date services can be offered based on compact and cheap-to-operate access systems with minimal losses, thus optimizing the number capacity. These options determined the boost in operators’ interest in this technology. However, the simplicity of intelligent equipment installation leads to constant increase in billing system requirements. Unfortunately, the technical level of the solutions offered does not always correspond to the level of the operators' real need, and often simply does not allow the development of some services.
Contract (postpaid) subscribers are interested in limiting their service expenses. High-rate Internet access, for example, enables subscribers to download large volumes of information in a short time, which may result in huge debts. Partially, cost-effectiveness and the necessity to cut costs when serving such clients determines the necessity to provide prepaid services, in order to minimize the loss and simplify hardware administration by deploying universal authorization technologies. Important economic components include: an attractive prepaid scheme of payment for various subscriber groups, easy access to the operator' s services, a wide coverage of the target audience, easy settlements between the operator, subscribers and dealers, etc.

M. CHERNYKH: Demand for prepaid solutions can be explained by economic factors. One of them is the problem of payment collection. Of course, operators have some powerful tools to influence debtors, e. g. barring the telephone number and subtracting the amount owed from the debtor’s account. However, the total debt amount, which equals frozen liquid funds of the company, remains considerable, as subscribers tend to recharge their accounts after the services are barred. There is the problem of debt payment as the users are prone to migration and in these cases they leave the former service provider in credit.
Prepaid technologies allow for eliminating (or considerably reducing) debts, as well as the risk of non-payment and maintenance expenses, as prepaid services do not require contracts, bills, etc.

A. BOBROVSKY: The share of prepaid subscribers in developing countries has already reached 90%. There are good reasons to expect this rate of increase in developed countries as well (there are about 60% prepaid subscribers presently).

IKS: What conceptual approaches to implementation of prepaid services (SN, IN, Advice of Charge, hot billing, etc.) does your company develop? What original concepts have you created?

V. PHILIPIEV: Our company was one of the first to offer prepaid solutions. The first installations of prepaid systems were performed based on the Service Node technology (the so-called loops). Using the Loop Around switching technology was a logical step in development.
Another breakthrough was the development of IN@Voice — an intelligent prepaid and customer care platform, an Advance Prepaid solution built around the Multi-service Intelligent Network Platform («Berkut»). IN@Voice provides the same QoS for prepaid and postpaid subscribers. Such platforms have been serving MegaFon prepaid subscribers in SFD «Mobicom Kavkaz» CJSC) since 2001. Initially, a SN switching platform was used. As the subscriber base grew, we performed the transfer to an IN platform on a tight schedule without interrupting service provision. Now IN@Voice provides services to more than 1,5 million subscribers of the Mobicom Kavkaz network, as well as to BeeLine GSM subscribers (CJSC «Stavtelesot», «Ekstel»), Tele2 Russia, Kall Telecom (Vodafone, Denmark), etc.

A. SMOLYAK: We use the following VoIP technology to provide prepaid services: Intel/Dialogic, Cisco Systems and a high-performance billing system we developed ourselves. The system supports online access to subscriber accounts from our web site, and allows real-time management of value-added services. A specific feature is that we use a stock billing platform, as the issued cards are directly connected to the stock exchange. Every call is a one-time purchase of traffic on the VoIP eXchange.
The client’s account can be divided into any number of affiliated accounts, which allows the card holder to issue separate PIN codes to other persons, and control their balances and expenses. This approach was also implemented on the operator level (outsourcing): any member of VoIP eXchange has access to the VoIP service interface through cards and can generate PIN codes for login if required equipment is available. The system allows for operating practically any hardware.
Every card issued has a corresponding internal telephone number (SIP ID) used to plug in additional hardware (Cisco 7940/60, ATA 186, etc.) that uses SIP. Calls between the SIP devices plugged into the Tario. net are free, regardless of the user’s location.

M. TIGIN: Our company has developed a classic SN solution based on the Lucent Technologies EXS open platform — that is, the «Excellent» system that performs unified real-time settlements for all services delivered on the basis of debit, credit, and corporate types of service. The complex can be adapted and integrated with existing billing systems. «Excellent» is a carrier-class solution featuring such mission-critical factors as reliability, functionality, and performance. The system differs from traditional solutions in its differentiation of switching and software management. Separation of the hardware components responsible for connections and external management ensures redundancy and reliability of the solution. The hardware/software solution enables one to provide a single service based on several remote systems, and to add new services to the already existing set of services. This solution is already implemented in the networks of some «Svyazinvest» OJSC business units and by some alternative operators, and it has proved to be effective for a considerably small number of subscribers.
An IN-based solution will be optimal when the number of active prepaid subscribers equals 2-3 million. We have a solution that includes an EXS switching platform and application software implementing the SCP function, both interacting with the Service Management Point and controlling the balance in real time. The solution enables smooth transition from the existing SN system to an IN platform. It merely requires obtaining software licenses. At the same time, the system supports CAMEL Phase II SP and enables all procedures defined in ETSI TS 101 144, as well as transition to CAMEL Phase 3 SP with the support of Circuit Switching Call Control, MO SMS Control, and GPRS Control.

A. MAKLAKOV: CBOSS develops and supports several options of prepaid system implementation — the hot billing technology is supported in the CBOSS billing system: the SN technology (CBOSSprepaid system), and IN-based solution (CBOSSprepaid and CBOSSrtBilling). We also have solutions based on the CBOSSip Internet Billing integrated system for providing Internet and VoIP through prepaid cards.
The IN-based CBOSSrtBilling system was developed for national and international telecom operators. It features high performance, reliability and unlimited expansion, permitting a subscriber base growth of up to 10 million people at a single Service Control Point (SCP). The system response time is less than 100 ms.
The latest version enables integration of prepaid and postpaid mobile services with the help of hybrid accounts — a subscriber has a single telephone number and can use different accounts.
The CBOSSip platform is a high-end solution designed for ISPs and telecom carriers who provide VoIP services. The platform provides an interface between the billing system (or the service telephone card system) and the operator’s equipment. Integrated with CBOSSstc Service Telephone Cards System, the Internet platform operates as a prepaid solution that monitors subscriber balance in real time and provides services specified.
Our prepaid solutions are designed for various operators: from small and state-owned to industry giants.

V. SAMSONOV: We extensively use the IN and hot billing technologies from the above-mentioned options. Many traditional billing systems can’t cope with the difficult procedures of prepaid billing: it’s necessary to authorize every transaction, and to monitor and charge in real time mode. To provide access to information from the moment the call is established, it is necessary to integrate the subscriber database, and tariffication, and billing mechanisms.
In mobile telecommunications; authorization, monitoring and charging functions of every concept are performed by different devices, which is why hot billing is the best option for billing application software producers, from a technological point of view.
The case is rather different for IP telephony and Internet access. Billing systems give a signal when the balance depletes and it’s necessary to terminate the call. The billing system then has to communicate with hardware over a common RADIUS protocol. Not every billing system supports such exchange. Besides, many operators opting for this concept now face a lack of high-grade billing for dial-up, and NetFlow, and without even mentioning Wi-Fi.
Billing duration is yet another substantial drawback of both prepaid and convergent billing. If the tariffication rate is not very impressive in a prepaid payment scheme as the call information is immediately processed, the postpaid subscribers bill processing sometimes takes several days. In the offered «T-soft» solutions the processing rate for NetFlow reaches 40-50 thousand records per second, whereas for telephone traffic it is 5-10 thousand.
In our opinion, the best for «hot» and convergent billing is the Phonekeeper 5.0 automatic billing system, developed with due consideration for all the above-mentioned arguments and operators’ demands. Large operators are attracted by its high functionality, reasonable price and the option to operate the up-to-date tested SoftSwitch like MERA Networks and AlterTeks, while small, but successfully developing companies, like the reliable system operation with not only Cisco intellectual gate units, but with those of other producers. A good example for such a solution would be an out-of-box solution consisting of IP gate unit (AudioCodes, VocalTec, D-link, «Agat-RT», AddPac, SoftSwitch (MERA Networks, AlterTeks)) and billing server (Phonekeeper 5).

M. CHERNYKH: Our company has different variants of prepaid solutions: SN solution based on «loop» call switching and IN solution using classic intelligent network principles (INAP) and supporting CAMEL/WIN technology.

M. SAMSONOV: We are well experienced in the prepaid products implementation. The first home prepaid development for fixed connection was created on SN technology for PeterStar Company more than 10 years ago. The PeterStar billing solutions for mobile telecommunications enable the implementation of prepaid products. Namely, in May 2004 SibChallenger Ltd., a subsidiary of «MTS» OJSC in Krasnoyarsk region, implemented tariff plans for «Jeans» family on the basis of the Peter-Service products.
The Peter-Service solutions don’t depend on network protocols. The conceptual difference of our latest developments is the weakly-coupled modular architecture enabling high scalability, flexibility and reliability along with low cost.

A. BOBROVSKY: For many years the Protek solutions have been equipped with a universal convergent scheme of subscriber care, not depending on the mode of payment or even on the serving standard. The solution architecture implies the presence of: network data-collecting modules (CDR/EDR) for all the network elements of the operator — all the calls and network events (for example, balance correction by prepaid cards) are stored in a common database; product catalogue common for prepaid and postpaid, where services are connected to the commands of the device they are to be activated through; service-provisioning modules for network elements; common user interface; common modules for payment operation and billing; and standard report set.
The client-serving module integrated into the billing system provides much more options than other companies’ CRM developments. The operator gets the set of business processes configured for his own needs and covering the complete subscriber life cycle — from activation and status/ services operation to complex information requests and data synchronization on the IN platform and in the billing system. It is possible to generate call itemization or even to issue bills (for example, if the subscriber is in roaming), as well as to manually amend the balance or activate the prepaid card for the prepaid subscribers.
Subscriber care is clearly transparent for the operator as the same modules and processes are used for all the standards and payment systems.

IKS: What opportunities does the integrated prepaid/ postpaid platform offer to an operator? What are the available solutions of that type on the Russian market?

V. PHILIPIEV: The integrated platform based on Advance Prepaid technology, for example, enlarges the subscriber serving options in comparison with the traditional prepaid system. It provides storage and receipt of information on all the subscriber’s calls for any period; any service activation; organization of infotainment services on request or periodic services with subscription fee; supports the essential financial procedures, etc.; enables the total automation of the subscribers self-service with the help of the Customer Self Care technology.
The operator acquires additional tools to develop the market policy, and to create flexible tariff plans, bonus projects, complex discount schemes, and cross-discounts using both postpaid and prepaid subscribers. Prepaid subscribers can use the traditional service payment method of scratch cards (vouchers), payment in cash — in cashier offices of service departments or dealers, or electronic payment — through banks and ATMs.
This solution enables the operator to send its prepaid subscribers into roaming using the ordinary TAP files processing scheme (though debt is possible in this case). The IN@Voice platform has been providing subscriber services for more than a year in the Tele2 Russia network.

M. TIGIN: Most operators have already installed prepaid and postpaid billing systems. The former often process some services on the basis of CDR files, the latter enhance the performance and enable the CDR file-processing with minimal delay (about 1 minute), thus approaching the real time systems. In such a case the operator incurs the expense of providing service for two systems at a time, and as the subscriber base grows, it has to expand both bases. The Marketing department is left with the additional load of positioning and developing the subscriber base in the direction of the prepaid or postpaid subscribers. The convergent billing system solves this problem, enabling the postpaid billing system to control subscriber calls in real time mode. Our company has such an EXS platform-based development.

A. MAKLAKOV: The prepaid and postpaid service platforms integration (particularly using CBOSSrtBilling, CBOSSprepaid, or CBOSSip) allows one to decrease the subscriber servicing expenses by means of organizing a single entry point for operators and common subscriber service systems, as well as to considerably widen the range of services. Besides, it enables a more flexible approach to subscriber servicing. Lastly, the integrated platform enables one to carry out the single analysis of financial, marketing and technical information. All this allows the operator to optimize the network usage and maximize the revenue, while service providers can concentrate on innovational services instead of investing money in the development of expensive infrastructure.
CBOSSprepaid was initially built taking into account the need for deep integration with the CBOSS post-paid solution, as an integrated solution from one supplier is the best from the point of view of technology and reliability. The CBOSS+CBOSSprepaid system has been tested, modified, and has received excellent recommendations from our clients. While the CBOSS and CBOSSrtBilling solutions integration is of current interest to operators with a subscriber base exceeding 1 million users.

V. SAMSONOV: As the popularity of prepaid services increases, there arises a need in billing systems to provide services for both prepaid and postpaid subscribers. As such solutions require huge investment, a single convergent system is more preferable because it eliminates the need to pay for two separate systems and makes it possible to optimize the support staff to some extent.
There already exist convergent billing systems, but their developers yield more to IN platforms. This platform enables simultaneous implementation of traditional and «hot» billing. It is merely necessary to add authorization, monitoring, and real time charging functions to the system. In addition to reducing the expenses on subscriber servicing, the operator is able to widen the range of services. The Phonekeeper 5.0. billing system was developed to solve these problems.
It is rather early yet to speak of universal convergence in the sphere of telecommunications. Among the companies, there are operators shooting far ahead technologically, but there also are outsiders… However, if billing systems' producers could offer some solutions enabling the accurate execution of the prepaid/ postpaid billing tasks, this will be a powerful motivation for telecommunications development on the whole.

M. CHERNYKH: Such a solution will enable the operator to develop a single service environment for their clients. There already are the systems of such class on the Russian market: the convergent billing platform of our production, for example. Its main feature is the universal program logic, enabling the rating and billing for any servers with the support of various payment modes for any subscriber category.

M. SAMSONOV: The integrated prepaid/postpaid platform can be used in various models.
A. Organization of interface for specific data interchange between the prepaid platform and the billing system. The model is usually implemented as a temporary solution when integrating two systems of different producers. At the same time, there arises the problem of developing and supporting the non-standardized, multifunctional interface between the systems (to synchronize accounts balance, subscriber data, information on delivered services, switch management organization, etc.). Such architecture can considerably reduce the reliability of both systems and increase the operation expenses, as it’s necessary to purchase and support both systems.
B. Common realization of separate functions used by both platforms. Such a model is also realized when integrating two systems of different producers. At the same time, some of functions of one system are «deactivated». The example given employs the common tariff-managing module of the billing system. Though this model is more reliable than the previous one, it has the same disadvantages. Besides, when «deactivating» one of the integrated system’s functions, it is possible to lose some subscriber servicing options.
C. Architecturally, a single system providing services for all the operator’s subscribers. Its implementation will give certain advantages to all the members of the process.
For former prepaid subscribers this means access to services which are technically impossible to provide in the frame of a prepaid platform; transparent transition to contract tariff plans; getting accounting documents for corporate prepaid subscribers; enhancement of mobility due to the integrated billing solution usage.
For «former contract» subscribers this means the real time control over expenses; transparent transition to prepaid tariff plans, for corporate clients, too.
For operator this means an increase in the subscriber’s loyalty due to the additional services provided; additional marketing options for all the categories of subscribers; tools for creating various tariff plans, complex discounts of any type; ability to work with legal entities according to the prepaid scheme; selection of an accounting model for prepaid subscribers (registering a scratch card or a call as service); reduction of malversations; reduction of capital and operational expenses due to the use of one platform; enhanced company manageability owing to centralization options provided by integration facilities of the billing solution and ERP system.

A. BOBROVSKY: Till now prepaid platforms supported relatively simple billing schemes, while subscribers could use the simplest tariff plans and services. Gradually, the IN platform logic became more complicated. There are examples of using such services, which are rather difficult to control in real time mode, as with mobile GPRS internet. However, operators still have subscribers with a credit payment scheme (for example, corporate users or state structures). Therefore operators often use different schemes for prepaid and postpaid subscriber servicing. It is obvious that a company should have a single information system for prepaid and postpaid subscribers (for the customer care department), a single product catalogue (for the service development department), and a common service activation module (for the technical department).

IKS: How would you characterize the dynamics of the prepaid service market development and its prospects?

V. PHILIPIEV: The prepaid service market is dynamically growing, which is proved by the increase in the prepaid subscriber’s share of the operator’s subscriber base structure. This is the quantitative growth of the market, whereas widening the range of services, first of all VAS, could be considered the qualitative growth.
Mass segment subscribers are the least loyal, which is why it’s necessary to make them the most attractive offer. Moreover, it should compare favorably to competitors’ offers, i. e. provide constant competitive advantage. It’ s also important to provide prepaid subscribers with the whole range of both basic mobile services (telephony, SMS, etc.) and VAS services. As a rule, prepaid subscribers are not ready to pay much for the basic services, but are quite responsive to new additional services (informational, entertaining, etc.)
The prepaid segment loyalty directly depends on the quality of the services provided. The attitude to mass segment subscribers cannot remain the same as that employed in work with contract subscribers. Traditional methods require vast extension of the operators’ servicing departments, thus reducing the economical efficiency of the operator work.
Operators try to unify the subscriber’ s servicing environment with the purpose of deriving benefit from the integrated subscriber servicing system and enjoying all the advantages of the postpaid and prepaid servicing schemes in one system. The producers of billing systems and prepaid solutions in their turn offer such solutions, with different degrees of integration, to the operators.
It is possible to suppose that prepaid serving will technologically prevail with time. However, all the subscribers will have the same range, level and quality of service as the postpaid subscribers now have.

A. MALIS: The prepaid service market is actively developing now and I think this growth will continue for at least five years, after which it will partially migrate to the postpaid phase.

A. MAKLAKOV: According to analytic data, the share of prepaid subscribers in the subscriber base structure of telecom operators is growing in geometrical progression since prepaid tariffs were introduced on the market. Prepaid subscribers cease to be low-income to the operator. On the contrary, the correlation between the expenses incurred in attracting them and the servicing revenue generated makes such subscribers profitable. It is logical to suppose that the future is in services that will enable a combination of prepaid and postpaid servicing.

A. SMOLYAK: The global tendency is that more telephony services are being provided on credit. I don’t think Russia will be an exception in this respect.

V. SAMSONOV: It’s all made quite clear by market dynamics: it will mean quickstepping for many years, unless there arises an «administrative» desire to «correct» it. I would like to consider this point in the context of billing.
Prepaid, particularly convergent, billing is more complex than the traditional service. The billing system’s development rate is astonishing, however… not always sufficient. It may be that in the near future many, if not all, the producers will offer prepaid/postpaid solutions. Now, with minor reservations, these solutions are very few. Operators choosing billing for subscriber’s servicing according to prepaid or contract schemes, should remember that new solutions are not always adjusted. Which is why it’s preferable to trust only the companies-producers of the specialized application software which has been on the market for a long time, and only after having preliminarily examined the implementation offered.

M. CHERNYKH: At present prepaid service is not merely voice telecommunication services with a remote balance recharge possibility and limited number of additional services. Competition and technology development resulted in the appearance of prepaid packages on the market, which provide the customers with a qualitatively new level of servicing, initially owing to the service range extension. Among them are MMS, GPRS, roaming, etc. which were previously available only to postpaid subscribers. This stimulated the developers to create universal billing solutions, enabling the subscriber to select the necessary service from the single service list, regardless of the payment mode.
The principle tendency of prepaid service development is thus convergence of the prepaid and postpaid subscriber’s servicing concepts.

M. SAMSONOV: In mobile telecommunications the overwhelming majority of subscribers are served on the prepaid base, though the terms of the contract don’t always comply with the «classic» prepaid definition. This tendency is unlikely to change in the nearest future. Particular groups of subscribers take tariffs without a subscriber fee, with zero service suspension threshold and simplified contract form as the most attractive. The share of such subscribers increases with the growth of mobile telecommunications implementation.
The differences between contract tariffs with prepaid and postpaid tariffs in mobile telecommunications now blend. I think that in the near future there will appear a single prepaid service market, covering the majority of mobile communications users. Some clients will be awarded with real time balance control, and others — without such control, but the technological differences won’t be determining for the end users. This market will be dominated by fully integrated solutions combining the capabilities of the billing systems with prepaid platforms.
Notable growth of prepaid service in fixed communications will occur only in the IP services segment, including cheap inter-city and international communications with the use of IP telephony.