When trying to achieve personalized policies and billing in the mobile world the 3GPP standard defines the Policy Control and Charging Function (PCCF). Policy and Charging Enforcement Function (PCEF) and Policy and Rules Charging (PCRF) are components of the PCCF and essential to its implementation in 3G/LTE networks. The PCRF deals with the provisioning of subscribers and their relevant policies and the PCEF is essentially tasked with implementing these higher-level policies on the network. In general the PCEF and PRCF communicate using the DIAMETER protocol using a Gx interface. In simple terms, the PCRF understands subscribers and the PCEF understands the network—the challenge is to get them speaking the same language. In addition to its enforcement function, the PCEF can also collect the intelligence required directly from the network and make it available to the PCRF for policy decisions (Gx Interface) and charging decisions (Gy/Gz interfaces). It is through the combination of these technologies that service providers can identify new revenue opportunities.
BSS and OSS systems can utilize the granularity of the information gathered to create new service plans for customers. Some plans may be quite simple: based on a throughput speed and a bandwidth cap or quota resulting in tiered service plans (Gold, Silver, or Bronze). Other plans may be more personal: a customer that is an avid gamer may want dedicated bandwidth with a guaranteed QoS service and he will be willing to purchase a gaming plan specifically for this. Some operators are already offering guaranteed Skype (VoIP) plans across their network to enhance the experience of that particular application.
It is through the combination of PCEF and PCRF technologies that service providers can identify new revenue opportunities.
As the industry moves from an ‘all you can eat’ mentality, it is essential for the consumer to understand what he or she is getting within any given plan. Most likely, a user will not understand when allowed a certain number of Gigabytes or Megabits per second. The tailored plans need to clearly communicate that a plan will come with free Web-based video or 10 audio books per month, for example.
There are many different cases beginning to appear in this market. We have recently seen AT&T in the U.S. move from a flat-fee pricing scheme to a tiered pricing plan, with some operators matching the move almost immediately. Others will hold out a little longer but they will have little choice but to follow or be left by the wayside.
The network has always held the key to a wealth of information. Service Providers now have the tools to gather network intelligence and insightfully use this information to launch new service packages based on events, profiles and network availability.
This point in time will be looked back upon as an evolutionary ‘turning point’ or ‘threshold’. And, those that make it through will go on to thrive while those that don’t will be running the risk of extinction.
Pipeline
Publishing, Volume 7, Issue 3
