Strategic Insights on Billing and Settlement Dynamics PPT


This PPT slide, part of the 157-slide Telco 3G Strategy Report PowerPoint presentation, outlines the implications of the i-mode case on billing and settlement processes, focusing on 3 main areas: settlement relations with content providers (CPs), billing types from users, and issues related to informal CP support.

In the current i-mode scenario, DoCoMo retains all revenue from data traffic, necessitating revenue sharing with CPs. The slide notes that the recovery period for profits from CP sales is lengthy, and the risks associated with nonpayment from credit transactions are significant. This context suggests a need for better risk management strategies and possibly a shift in how relationships with CPs are structured.

The implications for billing and settlement highlight opportunities for preferential treatment of qualified CPs, incentivizing them to enhance data traffic revenue. This could involve offering development subsidies or improved settlement terms. There's also a suggestion to consider alternative service provisioning models that might better accommodate the needs of CPs and mitigate risks associated with nonpayment.

On the user side, the slide indicates that billing types should be diversified beyond subscription models. The current model, which has a low monthly recurring fee, limits revenue potential. By introducing various billing options like pay-per-use, the service could attract a broader customer base and potentially increase revenue.

Lastly, the informal CP support issue points to a growing trend where these providers are seeking independent settlement solutions. This could lead to new market opportunities for settlement agency services, allowing mobile operators to generate additional profit streams. Overall, the slide emphasizes the need for strategic adjustments in billing and settlement practices to enhance revenue and manage risks effectively.




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