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.