In the telecom industry, services are the basis on which the offerings of any telecom provider are built, and revenue is generated. Services cover voice calls, messaging, mobile data, broadband, roaming, and value-added services (VAS).
Each service communicates separate billing rules, usage tracking elements, and pricing mechanisms to ensure customers are charged accurately for consumption.
What Are Services in Telecom Billing?
In telecom billing, services are types of telecommunications offerings that telecom operators sell to customers. The types of services include:
🟢 Basic Telecom Services- Services such as voice calls, SMS, and mobile internet service.
🟢 Value-Added Services- Services like caller tunes, video streaming, and cloud storage for a fee.
🟢 Roaming Services- Services that are brought into action when a customer finds himself outside the premises of his home network.
🟢 Enterprise Services- Advanced communication solutions meant for corporations and large businesses.
Each one of the services has its own billing model and price mechanism. Some services are billed on a per-usage basis, while some operate on a subscription or bundled price mechanism.
Types of Services in Telecom Billing
Telecom services are billed under core services, value-added services, roaming services, and enterprise solutions.
1. Core Telecom Services
Core telecom services are the primary services offered by telecom operators. These services are the backbone upon which billing and consumption are tracked.
A) Voice Calls (Telephony Services)
Voice calling is the most important telecom service. Voice calls are charged on the following basis:
✅ Call duration (per second or minute billing)
✅ Call destination (local, national, or international calls)
✅ Calling plans (unlimited, pay-as-you-go, post-paid fixed-rate plans)
B) SMS (Short Message Service)
SMS services are billed in the following manner:
✅ Number of SMS sent
✅ Destination (local, national, or international)
✅ Subscription-type; unlimited SMS plans
C) Mobile Data & Internet Services
Data Services are channels to the internet represented in terms of browsing, video streaming, and app service usage. These are reported charges in the following manner:
✅ Data volume (per MB/GB usage)
✅ Speed tiers (3G, 4G, 5G pricing)
✅ Fair Usage Policy (FUP) for unlimited plans
2. Value Added Services
Services that enhance customer experience and give telecom operators additional revenue streams.
A) Caller Tunes & Ringtones
Monthly subscription where customers get to set their personalized ringtone for incoming calls.
B) OTT (Over-the-Top) Services & Streaming Subscriptions
The Telecom provider creates bundled subscriptions with Netflix, YouTube, or Spotify.
C) Cloud Storage & Backup Services
Telecom offers cloud storage for photos, videos, and backups.
D) IoT & Smart Device Connectivity
A Internet of Things connects the smart devices on the ground of telecom networks. The IoT services enable wearables and home automation systems, and also connected vehicles to be connected to telecom networks.
3. Roaming Services
Roaming services allow the customers to access their service outside the home network. Because of this, charges are generally higher because of the agreement between providers of different parts of the region.
A) Domestic Roaming
When a user travels within the same country but outside the home network coverage.Charges may be identical to local rates or may be arranged just slightly higher.
B) International Roaming
When someone uses a phone in another country. Charges vary according to the destination country, network agreement, and type of service (voice, SMS, and data). Many operators offer international roaming packs to reduce cost.
4. Enterprise Services
Enterprise services provide telecom services to their business customers by offering next-generation communication solutions.
A) Business VoIP & Cloud Telephony
As an example of replacing a traditional telephone call system with cloud voice calling, such as VoIP.
B) Dedicated Internet Access (DIA)
High speeds, guaranteed bandwidth to the Internet for enterprises.
C) MPLS & VPN Services
Private secure networks for the corporation.
How Services are Billed in Telecom?
➡️ Subscription
Subscribers pay a monthly or annual fee and consume the service. Usually for all post-paid cellular services, OTT subscription models, and cloud services.
➡️Usage-Based Billing (Pay as You Go)
Charging by actual usage (eg, charges per minute call, MB data). Mostly used for prepaid accounts and international roaming.
➡️ Tiered Pricing
A customer has the option to choose between service levels at different price ranges. For example: 1GB data at $5, 5GB at $20, unlimited at $50.
➡️ Bundled & Promo Packages
Operators package in these services with discounts.For example: Unlimited calling + 50GB data + Netflix cost $40/month.