Examining how KPN has achieved flexible billing for their Prepaid Services

Examining how KPN has achieved flexible billing for their Prepaid Services

Mieke van Kalker, Product Responsible for PrepaidWednesday 26th September 2004

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Outline of presentation

• KPN Mobile: Who are we?

• The Mobile Market in the Netherlands

• Replacement of the Prepaid platform

• Keeping up with Marketing requirements

• Questions?

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Who are we?

More than 45 million

voice minutes per

day

15.5 million

customers

KPN Mobile

Strategic partner

1.450.000 i-mode

customers

5735 employees

More than € 5 billion

revenue in 2003

Status 9 augustus 2004

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The Netherlands

Market share 39.3%

Subscribers 5.41 mln

Penetration 85 %

KPN Mobile Division

5

Belgium

Market share 16%

Subscribers 1.44 mln

Penetration 79 %

Germany

Market share 12.9%

Subscribers 8.71 mln

Penetration 82 %Status 9 august 2004

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The Mobile market in the Netherlands One of the most competitive markets

5 network operators, 6 brands

A lot of (emerging) WholeSale / MVNO parties, e.g.

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Market share Prepaid customers

KPN

Vodafone22,8%

Telfort8,9%

T-Mobile12,8%

Orange13,9%

41,6% Ultimo August 2004Total prepaid base: 8,7 million

Ultimo December 2003Total prepaid base: 7,8 million

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Replacement of the Prepaid Platform

• Why replacement?

– The Market demand requires a great amount of flexibility in our ICT environment, both from a technical and functional point of view

– Existing platform is end –of -life

• Selection proces

– Telecom Suppliers

– Billing suppliers

– Convergence with postpaid billing

• Complexity

– More than 20 interfaces

– More than 3,5 million customers

– Many different services

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Replacement of the Prepaid Platform

• Project New Prepaid

– Goal is to replace the current PrePay infrastructure with the Alcatel OSP PrePay solution before the end of 2004

– Minimal service interruptions

– Seamless migration of current services and customer base

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ICT architecture

Bill Calculation

EBP

Real-time Call/

session control

PrePay

CDR / event -Mediation

ServiceMediatorContent

GPRS

SMSCMMSC

MSC(Voice)

Service Domain

Customer

CRM andMarketing

ProductManagement

Product

NetworkDomain

Bill payments

HLR

Rating

CustomerManagement

PostPay

Real-time Rating

Man

ag

emen

tR

epo

rtin

gF

inan

ceB

ank

s

Billing data,Account balance

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Migration

• Migration in Q4 2004

– Migration of vouchers

– Migration of subscribers

– Migration of data/ MMS amount

• Keep the services running at all time

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Marketing in a highly competitive market

• More than 10 brands, fighting for customers

• New ideas, giving away minutes/ SMS

• Price war on SMS

• Validity of Prepaid Balance

• New services, especially on Value added Services

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Speed of technical changes

• Market demands a quick reaction at all times

• Technical changes take time

• Challenge to align these two opposites

– Explain technical constraints

– Be closely involved with new ideas

– Suggests possibilities from technical point of view

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Loyalty pograms

• Prepaid customers are a challenge to keep

– They have no contract

– Change very quickly

– Price is important

– New Prepaid cards come with new mobile phones

• Possible solutions

– Reward high value customers

– Keep new services coming

– Always stay ahead of the competition

Prepaid in the Netherlands:a fascinating service

Any questions?