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How is Telecom Billing Done?

The telecom billing cycle starts with gathering service usage, typing the calls, applying charges, applying taxes and then generating the customer invoice. Billing also includes transmitting the invoices and recording customer payments and adjustments.

Main Steps in the Telecom Billing Process:

  1. Call Typing: Gather usage (CDRs) and establish the type of call.
  2. Call Rating: Calculate charges based on rate deck and applicable taxes.
  3. Customer Billing: Determine total fees and produce the invoice.
  4. Invoice Transmission: Email, print, or download.
  5. Payment Processing: Payments and adjustments.

What is rating?

The rating process takes each CDR and matches the originating phone number against the data to discover the customer and price level to apply. Each call is then rated against the price level to calculate a cost.

What does a CDR contain?

  • Phone number dialed
  • The originating phone number used to identify the customer
  • Duration of call
  • Date and time of the call

The rate deck often contains the following information:

  • User-defined call type (local, intralata, on-network, etc.)
  • Connection charges
  • Minimum billable connection times
  • Configurable call increments
  • Call rounding options (up, down, round)
  • Minimum and maximum calling charges

What occurs during invoice calculation?

  • Frequency of bills
  • Proration of services
  • Late fees
  • Invoice formatting (profile/template)
  • One-time plus, recurring charges, plus usage and taxes
  • Custom messaging

How are invoices transmitted?

What takes place "post billing"?

  • Cash related payments
  • Automated payments
  • Real-time credit card payments
  • ACH payments
  • Lock box transactions

Read our blog post: Telecom Billing Process Flow Chart 

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