Charging and pricing challenges for 3G systems

Abstract

Mobile operators and service providers require a flexible charging system/mechanism that accommodates various pricing models, such as models based on a flat rate, call duration, call volume, Quality of Service (QoS), or user perceived quality, in order to fulfill not only conventional business models but also innovative models. This article reviews current methods for pricing, charging, and billing for 3G mobile services. It further recommends that charging and billing methods be reexamined, as charging by simple metrics for wireless network and service providers will result in lost revenue. This article examines the selection of a specific pricing method, which could be based on customer and service profile characteristics. It discusses the characteristics that are exhibited in third generation (3G) type services but are non-existent in the previous services, leading to new and challenging methods to account for their usage. This article also reports that innovative approaches are needed when considering the application of accounting principles such as mediation, billing, and charging to these new services.