Telecom billing is how telecommunication service providers (TSPs) charge their customers for the usage of the services.

The services include:

✅ Voice calls (local, long-distance, and international)
✅ SMS/MMS (text and multimedia messaging)
✅ Mobile data usage
✅ Roaming services
✅ Value-added services (VAS) such as caller tunes, streaming subscriptions, and cloud storage.

Telecom Billing Process Steps

1. Customer Subscription and Account Setup

Before billing can take place, a customer has to subscribe to a telecom service. The entire process typically entails:

• • • Customer registration: Collection of personal details such as name, address, and contact info.
    • Selection of services: Mobile plans (prepaid/postpaid), data bundles, and other services.
    • Credit checks (for postpaid): Credit checks give assurance for financial eligibility for offering service.
    • Account Setup: Putting customer details into the CRM system and linking the data to a unique subscriber ID.

Once a customer goes on board, all usage activity for the customer will then be tracked for billing purposes.

2. Call Data Record – Capture of Usage Data

Whenever a call is made, an SMS is sent, or data usage takes place, a call data record (CDR) is generated in the network.

• • • The caller’s number
    • The receiver’s number
    • Call start and stop time
    • Call duration
    • Data usage details
    • Location of caller and receiver

3. Mediation

In simple terms, the mediation system acts as an interface between network systems and the billing systems. It takes raw CDRs and processes them into bills.

• • • Elimination of duplicate or erroneous records
    • Changing raw data into billable format
    • Aggregation using information from other sources, including fixed networks, roaming partners

4. Rating and Charging

The rating engine applies the price attached to each usage record as per the customer plan with other applicable discounts:

• • • Prepaid customers: Charged at the moment real-time deduction occurs from their balance.
    • Postpaid customers: Charges accumulated during the billing cycle will be invoiced at the end.

5. Billing and Invoice Generation

After the end of the set billing cycle, the most common practice is generating a monthly bill by the billing system. The bill normally contains:

• • • Fixed charges: Subscription fees charged based on the selected package
    • Usage charges: For making calls, sending texts, or using data beyond the allotted quota
    • Taxes and regulatory fees
    • Discounts and promotional offers
    • Total sum due and payment due date

6. Payment Processing

On or before the due date, the bill should be paid to continue receiving services. Modes of payment include:

• • • Credit/Debit card
    • Online banking
    • Digital wallets (PayPal, Google Pay, Apple Pay)
    • Auto-debit from the bank account
    • Payment in physical centres

7. Credit Control and Dunning

If a customer delays payment, the telecom provider initiates dunning credit control, which involves:

• • • Sending payment reminders
    • Imposing a penalty for delay
    • Restricting services
    • Applying disconnection for non-payment

8. Revenue Assurance and Fraud Detection

Telecom billing systems check against revenue breaches and detect fraud, such as:

• • • SIM cloning
    • Call-bypass
    • Subscription fraud

9. Customer Care and Dispute Resolution

Customers can file disputes regarding billing errors. Customer care should:

• • • Verify CDRs and usage details
    • Correct bills if errors are found
    • Provide refunds or credits if necessary

Basic Telecom Terminology