Why Telecom Interconnect Invoicing Is an Essential Part of Telecom Billing Software?

When one hears the word bill, the brain automatically starts imagining a paper bill sent to the customer. However, in the modern telecom industry, billing is not confined to this mental imagery. The scope of telecom OSS solutions and billing is vast. It is found in different tangible and intangible forms. What you get from your telecom vendor every month is just one of the many forms of bills that are circulated in the telecom industry. A lesser known billing system that plays a vital role in the overall operations of the telecom industry is known as ‘Telecom Interconnect Billing’.

What is Telecom Interconnect Invoicing?

To understand telecom interconnect invoicing, we first need to comprehend the process of interconnect. Interconnect is a method devised for handling calls for other service providers. Interconnect is essential for enabling the connection between the customers of two different service providers. Along with telecom OSS solutions, it plays an important role in disseminating telecom services. In scenarios where the operators are not ‘interconnect partners’, it would not be possible to connect a customer of one service provider with the customer of another. There are many scenarios in which interconnect can be used for imparting telecom services. Below is a list of certain scenarios:

1.      Two service providers interconnect, so that subscribers of one service can call a subscriber of another service.

2.      When a customer using traditional wire line connection calls another mobile subscriber, he makes use of an interconnection point established between the two different service providers. It would not be possible to make a call like this without establishment of an interconnect process.

3.      Long-distance service providers can interconnect with local service providers and start offering services to a new customer base.

The process of interconnect takes place in the background and the user is not able to observe its complexity. However, interconnect is crucial for providing telecom services via telecom billing software.

Interconnect Invoicing

Interconnect Invoicing is the procedure of sending invoices to an interconnect partner. The invoicing is based on the Call Data Records, better known as CDRs. In case of an interconnect network, outgoing calls are the expense and incoming calls are the revenue of a telecom service provider.

Interconnect invoicing systems account for the pricing of all incoming and outgoing interconnect CDRs. In most cases, the interconnect price is evaluated for both incoming and outgoing interconnect. The price is set on the basis of incoming or outgoing trunk interconnect route, which is responsible for carrying the call. Generally, the trunk ID refers to the interconnect partner in the ‘interconnect invoicing system’. After the price of service is calculated, we move onto the settlement process.

Settlement Process

This process is important for settling the cost of operations. In this process, Outgoing (Expense to Interconnect Owner) and Incoming (Revenue to Interconnect Owner) traffic is evaluated and the charges are levied according to the use of the interconnect network. It can be done bi-weekly or monthly basis, as per the requirements of the telecom billing software used in the process.