Cable’s Quad-Play Offering Begins with Evolved Billing Systems

By Michelle A. Nowak

Cable companies are feeling the pressure of increased competition to their core video service coming from several different angles. With the rise of 3G/4G wireless services, peer-to-peer networks, and the emerging influence of Google and Apple in the video sector, cable companies are being forced to compete directly with telcos by adding wireless phone service as a fourth service option to their current bundle of video, voice and data.

The addition of wireless and the creation of a quad-play offering of integrated services opens up cable operators to a wealth of new revenue opportunities. However, the success of this venture hinges on the ability of these companies to evolve their back offices from static systems to dynamic smart BSS solutions. Without smart BSS to empower legacy systems, cable companies may find that the benefits of offering wireless voice – and by extension mobile data and video – remain elusive.

Many cable operators are already making moves to position themselves in the wireless market. In North America, cable companies have been busy buying up wireless spectrum and entering into agreements with partners who can help them offer new services. In the EU, cable providers are getting a boost from recently announced plans to make wireless broadband a key priority by winding down analog to make way for more digital services. This move will free up more bandwidth, enabling all providers to offer wireless services and deliver broadband to underserved rural areas.  

But just as important are the internal moves operators make to ensure their back-office systems can support the enhanced billing, selling, and service needs associated with wireless or any other quad-play venture. The wireless space is an already crowded market where consumer expectations are high. To meet the business and consumer demands associated with wireless service, a Smart BSS solution that leverages real-time intelligence to provide personalized service and enhanced selling opportunities and is capable of handling billions of simultaneous transactions is needed.

With tight budgets only getting tighter, cable companies upgrading their BSS for quad-play service would be smart to opt for a “solve and evolve" approach rather than a full-scale rip and replace. This means working with a strategic billing partner to migrate to a solution that addresses the current platform’s deficiencies while solving immediate business pain points throughout the implementation process. By taking a productized approach and building off of the legacy system, cable providers can reduce the cost and time associated with a BSS upgrade, as well as minimize disruption and risk to the company and its customers.

With the BSS system operating more efficiently and beefed up for next-gen service, cable companies will be able to take advantage of enhanced functionality such as:

• 360 Degree View of the Customer: With a single, 360-degree view of the customer and a centralized and unified product catalog, cable providers will be better able to monitor what services are being used by which subscribers, giving them greater ability to quickly create and market customized offerings that will help capture share, grow revenue, and reduce churn.
• Hierarchical Rating and Billing: The mobile world widely uses dynamic rating and billing engines to tailor offerings to the individual and establish hierarchies within large business accounts to track usage and better manage costs. Cable operators will have the same capabilities, tied into traditional cable lines of business, to enable personalized pricing and promotions that encourage customer loyalty.
• Business Intelligence: Advanced analytics that can identify transactional and usage patterns will give cable companies insight into the preferences and behaviors of subscribers and offer a much needed competitive advantage as they attempt to position themselves in a crowded wireless market. 

The lines between the cable and telecom industries are becoming blurred as companies from both sides look to grow their business by adding competing service offerings.  For cable companies, wireless service is just the beginning. Plans to introduce products and services such as high-speed data, mobile video, and, further down the line, integrated home voice over IP/mobile service will follow. But before all this potential can be realized, cable companies must evolve their BSS systems to a smart solution capable of handling all the billing and charging requirements associated with these new services.

Michelle A. Nowak is the Convergys Global Head of Strategy, Solutions and Marketing for the Cable, Broadband and Satellite market vertical. She has 20+ years of experience in the technology industry and an extensive background in cable, broadband, satellite, telecommunications, enterprise software and solutions, and innovation.