Features & opinions | 5g, Digital Services, Digital Transformation, Huawei, Monetization

Digital life and digital industry as new challenge for monetization platforms

October 10, 2022 | DTW news room

By: Paxton Wang, Vice President of Huawei Software Business Unit, Huawei

The evolution to a digital world will require the redesign of monetization platforms, so that they are key component to monetize the new opportunities opened and to enable differentiated experience. There are both technical and business challenges that this evolution need to face, like the extreme volumes of traffic and transactions generated by 5G and the emerging new business models of different digital services.

In this context it is crucial to include the reengineering of monetization platforms as rating, charging and billing systems on an early stage of the digital transformation of supporting systems.

Carriers has realized about this need, and many of them are in the process or redefinition of monetization paradigm. First of all, it is important to understand the future business needs, so that, this is the key reason to evolve. Having a look on the leading markets where 5G is being developed first, we can conclude that the most important business requirements to answer are as follows:

  • New monetization elements as experience in 5G era: From monetize based on volume to monetize based on real-time experience. If the customer will pay based on experience, it is required that this experience was real and measurable. If this is not the case, the price must be adjusted accordingly or a compensation must be provided to end user.
  • New business model for B2B/B2B2X scenarios: The new potential revenue-generating opportunities are expected to come from B2B and B2B2X than traditional B2C, especially in 5G era. New revenue share and settlement method is required to co-create the digital ecosystem.
  • New digital service supported in short time to market: 5G will open new possibilities which go beyond traditional limitations for a lot industries like manufacturing, healthcare, transportation, etc. The environment of innovation around of those new digital service and strong competition between carriers require the best time to market to allow competition. The new system must be highly configurable, agile and open to third parties.

All these points, among others more detailed in this high-level summary, answer the “business” side of the problem. But there are other “technical” problems that must be answered like:

  • More efficient and cost-effective scalability: The booming of data usage is a fact, while the requirement on real-time experience is non-negotiable. Capabilities like auto-scale in/out will become mandatory in near future.
  • New 5G SA architecture: 3GPP define new architecture, new protocols and new responsibilities for Rating system that must be implemented to follow 5G SA standard.
  • Higher IT agility and reliability: New services such as 5G 2B and IOT have brought massive connections and data processing demands, posing new challenges to system performance and bringing system reliability to a new level of importance.

But although all these challenges are difficult to solve, carriers should not give up on TCO optimization through simplification and intelligent operation. New technologies like Cloud or DevOps will help on this duty.

Huawei, as leading player on digital transformation and 5G, realized about all these challenges and needs and have been working on a leading product during last years. Huawei Convergent Billing System (CBS) can give solution now to all these problems. On 4G era, real-time Convergence Billing became the most important trend. Now in 5G era, other features like ToB monetization, cloud native, modern operation, DevOps and platform openness have become mandatory. The following picture shows the key highlights of Huawei CBS.

One very good example of what we are talking in this article is an operator in Spain. Since beginning of 2022, Huawei has been working on the digital transformation of rating and charing domain for the Spanish operator.  While preparing the platform to support all future challenges, the operator has been able to optimize the total budget required in this domain. Simplification, advanced features and intelligent operation are the key to support future business and traffic grow while reducing the TCO.

As a conclusion, be sure that evolution of Monetization system is on an early stage in your digital transformation plan. Be ready for 5G SA, not only from technical architecture, but also for business readiness. Be sure it will scale in an efficient way and not tied to any cloud private technology. Be Open and Agile for best TTM.

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