How is telecom billing done?

Main steps in the telecom billing process for ILECs, CLECs, and interconnected VoIP service providers.

A telecom's 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.

Usage gathering and call typing

We start by importing your usage (CDRs) and establishing the type of call. For example local, intralata, or on-network call types.

Call rating

This is where TimelyBill calculates charges based on the rate deck and applicable taxes. 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.

CDR contents:

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

Rate deck contents:

  • Connection charges
  • Minimum billable connection times
  • Configurable call increments
  • Call rounding options (up, down, round)
  • Minimum and maximum calling charges

Billing and invoice generation

In this step, TimelyBill's billing engine determines the fees, does the rounding of decimal places, and applies free minutes (if applicable). During invoice generation, our platform calculates a customer's recurring and non-recurring charges, taxes, discounts, etc.

Invoice contents:

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

Invoice transmission

 Here our software presents invoices to your customers via email, print, or downloadable format (PDF).

Payment Processing

This is where our billing system manages customer payment processing

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

Unfamiliar with a term in this process? Read our telecom billing glossary.


Telecom Billing Process Flow Chart