Whether you’re a major telecommunications provider or a startup company, telecom billing can be a vulnerable point. If you get the billing wrong, expect numerous problems – a barrage of complaints from customers, delayed or unpaid billing, poor revenue collection, and fiscal standing, low customer satisfaction, and poor brand reputation.
The billing system is the backbone that supports telecom operators. A poor billing system puts your business at risk for losses. According to USAGov, billing disputes are among the most common complaints filed against telecom companies. It also renders you less competitive. For example, rigid legacy systems do not allow you to launch new products and services easily. All of these can negatively impact your business operations and hinder your success.
What is a telecom billing software?
Telecom billing refers to the process of collecting customer usage, compiling it, applying rental or usage charges, and preparing and sending invoices to subscribers. It also includes the process of collecting, receiving, and recording payments from subscribers. The telecom billing process also entails managing debt collection.
Unlike in other sectors where customers can be billed manually, the complex charging scenarios in the telecommunications industry makes it virtually impossible. As such, operators use telecom billing software to automate these complicated tasks efficiently, timely, and accurately.
In the telecommunication sector, customers are billed in different ways. In general, they can be charged either with rental or usage rate. Rental charges are fixed monthly dues that are billed to subscribers, regardless of whether the service is used or not. Meanwhile, usage charges take into account the customer’s service utilization.
Aside from the subscription fees, the billing software also accounts for other charges such as service initiation, upgrade, termination, suspension, and penalties. This IT solution also helps track and manage both accounts receivables and accounts payable of the company.
Developers of the enterprise billing system, Kansys, emphasize the importance of efficient billing systems for telecom companies. These IT solutions are equipped with various features such as:
· Charging and invoice generation
· Batch preparation and sending
· Payment processing
· Flexible product & services adjustment
· Credit control and collections
· Pre-pay and post-pay rates
· Discount and penalty application
Why does my business need it?
Telecom billing software is essential to telephone service providers, mobile wireless communication firms, VOIP companies, internet service operators, TV and cable companies, and other firms in the telecom sector. There are many reasons why your business needs it.
Accuracy
Automating the billing process ensures accurate and timely preparation and generation of invoices. This minimizes errors due to the manual billing process. It also prevents disputes and problems with your subscribers.
Electronic billing
Telecom billing software allows your subscribers to opt for electronic billing, which enables them to receive and access bills on digital devices such as computers and mobile phones. It saves you a lot of money from printing and postage of bills. Likewise, it provides a convenient payment method for your subscribers.
Easily manage plans and rates
Telecom billing software enables you to offer uniquely priced services. You can also add, update, or modify products as well as its pricing and payment terms. It allows telecom operators to implement new pricing mechanisms or tax rates without disrupting the billing process. Legacy billing systems run the risk of being unable to frequently change tariffs. This level of flexibility proves vital especially in an extremely competitive market.
Detailed billing data
Automating the billing process gives subscribers access to more detailed billing information. The billing statement should include a comprehensive list of all services available, such as calls, data usage, messages received and sent, etc. Your subscribers will appreciate it when they can see where each penny goes.
Data validation
Efficient telecom billing software can identify and purge duplicate records in the database. By removing double entries, you can avoid double billing. It also allows you to easily identify inactive and active subscribers.
Deeper insights on business
Telecom billing software provides your business with a quick source of reliable data. You can easily generate a report about your clients, such as their demographics, which you can guide you to improve customer relations. Likewise, you can also have a quick view of your business’ fiscal status. The system likewise allows you to track and manage all telecom related expenses, such as assets, usage, subscriptions, etc. These are crucial data that can help the management come up with sound decisions.
Simplify budgeting process
Lastly, telecom billing software empowers you to manage the budgeting process. You can get a quick overview of the company’s financial status.
