Overview

A usage based subscription is simply a subscription where users will be billed based on the usage they have consumed. These kind of subscriptions can be used in various lines of business such as:

• OTT: Over The Top refers to audio, video, and other media content delivered over the Internet without the involvement of a multiple-system operator (MSO). When OTT is provided through subscriptions, it is usually measured and invoiced based on its usage, e.g. how many VODs (Videos On Demand) where ordered.
• Fleet Management: In the fleet management business usage subscriptions are used for fleet members in order to keep track and measure usage of the product being offered, e.g. petrol.

Setting Up Usage Based Subscriptions 

Usage Detail Records (UDRs) are used to hold raw information describing the use of 'usage services' and are primarily used for billing purposes.

Usage based subscriptions require the standard subscription configuration in addition to the usage based specific setup. Refer to Subscriptions for guidelines on what needs to be setup to work with subscriptions. In this section you will find usage specific setup information.

Types

UDR Types are used to classify and group UDRs based on their business meaning. Each UDR type can have a set of Allowed Metadata Attributes which will be applicable to UDRs of that type, and a Unit of Measurement, used to describe the way that the usage service will be measured. Once UDR types are configured they can be added to usage service product types to provide information on how the service will be billed.

Metadata available in UDR types can be used to capture information such as the time, or the device a film was ordered from, as well as the location of the customer. The same metadata can be set as conditions in price plan tiered rates for usage services (through usage Zones) and the information will be processed by the system during billing to differentiate pricing.

The UDR Types can be used as conditions in Additive Discounts to provide discounts to customers when ordering usage services.

The UDR Unit of Measurement is used to measure the usage of the service that was consumed by the UDR. For example, you can define that a usage service is measured based on litres, minutes, seconds, bytes, transactions etc. Each UDR type is related to one Unit of measurement which is used to measure UDR usage of that UDR type.

Usage Zones 

A much more powerful tool to differentiate rates is by using the Usage Zones. Usage zones is a configurable entity using metadata attributes. Metadata attributes allow you to set up your own fields in the system and thus use those fields as conditions for specific rates. For example, you can create a metadata attribute which will log the location of the user ordering a film. You can then use the 'location' metadata attribute to create multiple Usage Zones (one for each location) and add the Usage Zones in the tiered rates of the usage rate. When a UDR (Usage Detail Record) is billed in CRM.COM which meets one of the Usage Zone conditions then the specific tiered rate will be applied. 

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Additional set up

As aforementioned if you would like to create subscriptions for usage based services you just need to follow the normal flow of subscriptions. For more information refer to Subscriptions. In the following sections you can find information specific to usage services, such as how you can provide rates and discounts, how you can order them as well as how billing is handled by the system.

Defining rates for usage services

Usage services are either rated in CRM.COM or externally. If services are rated externally, it means that the price is already defined on the usage service used and it is possible to provide additional discounts in CRM.COM through additive discounts.

Rates of usage services rated in CRM.COM are taken from Price Plans. Either the Global Price Plan or any other price plan applicable to the customer being rated. A base rate is applicable per usage service in a  price plan, however different rates can be provided for the same service given that they fulfill the conditions which can be defined by making use of metadata usage zones and date/time periods.

For example, you can provide 2 different rates for the same service; one which will always be applied and a reduced rate which will be applied if the service was ordered off-peak hours. 

Pricing/billing of Usage services is done by creating and billing UDRs which hold all the required usage and billing information. If the usage service is Rated outside CRM.COM then the UDR with all the required information is imported.

Discounting Usage Services 

Usage services can be discounted whether they are rated in CRM.COM or by a third party system. Discounts can be provided on an ad hoc basis (at the time of the ordering) or automatically by the system through Additive Discounts.

Additive Discounts can be set in advance in the system and can be usage specific. Conditions can be applicable, so discounts are provided only on specific usage services, services of specific product types or services of specific UDR types and if these meet certain conditions. 

Ordering Usage Services 

A service can be ordered through a subscription as a usage service through the 'Add Service Usage' action also available through the WEB API. As long as the customer meets conditions defined in effective valid Price Plans then usage services may be ordered. Availability of a service depends both on the validity dates of the Price Plan and the product. It is also possible to order a service for a time in the future, depending on the service's availability. 

Integration to provisioning hosts for OTT

A provisioning provider system/host is an external system that is responsible for delivering signals to subscriber devices, based on the CRM.COM services of the subscriber.  Provisioning hosts are required in order to use usage services from a broadband service provider or in a subscription TV implementation.

Examples of provisioning providers include:

• A Conditional access system (CAS) delivering content to decoders for DTH and DTT subscriptions
• A Video/IPTV platform streaming OTT content to tablets  
• The RADIUS server providing network service to a modem.  

When a customer places an order, the system forwards the request to the provisioning providers to supply the service.

CRM.COM is integrated with several provisioning systems, such as Conax Contego, Nagra, Perception, Verimatrix, Icarius, and Panaccess. Refer to Provisioning for a comprehensive list.

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Managing UDRs

As mentioned above Usage Detail Records (UDRs) are used to hold raw information describing the use of 'usage services' and are primarily used for billing purposes. They cannot be created manually; they are generated by the system during rating, and they provide the information required to bill a usage service. UDRs can be adjusted or cancelled or even have their billing type changed, which means you can easily credit a UDR or even set it as not billable.

Adjusting a UDR

Adjust incorrect information captured on the UDR before or after it is billed. If already billed, the system will handle the adjustment by debiting or crediting the associated account with the adjusted UDR. 

Billing UDRs creates rated billing items (RBIs), which have to be cancelled (by creating an identical RBI of opposite value) when a billed UDR is adjusted.  When the adjusted UDR is billed, a new RBI is created. 

A UDR can be adjusted once you have selected to View it and then selecting Actions > Adjust. 

1. Adjust the following as necessary:
   • Product: the service that was used
   • Billing Effective Date
   • Usage Amount: the quantity consumed
   • From and To Date: the period during which the service was used
2. Click on SAVE to apply the adjustment. 

Cancelling a UDR

Billed UDRs can be cancelled, debiting or crediting the associated account in the process (a UDR that credited an account will debit it when cancelled and vice versa). Cancellations can be used to settle a customer complaint by offering a usage service free of charge. 

A UDR can be cancelled once you have selected to View it and then selecting Actions > Cancel.  

The billing of UDRs creates rated billing items (RBIs), these are cancelled when a billed UDR is cancelled (by creating identical RBIs of opposite value).

Changing the billing directive of a UDR

The billing directive is set by the system and instructs the billing engine on how to handle the UDR, providing it with three options:

• Not To Be Billed (exclude the UDR from billing)
• To Be Billed (debit the related account)
• To Be Credited (credit the related account)

The user can update the directive to manage billing, by using three actions available from the Actions menu after selecting to View the UDR: 

• Set As Billable   
  
• Set As Creditable
• Set As Not To Be Billed
  

The billing of UDRs creates rated billing items (RBIs), these are cancelled when the billing directive changes. Once the action is submitted an identical RBI of opposite value is created and handled in the next billing run.