Setting up Usage Based Subscriptions


Overview

Usage based subscriptions are thriving in the last couple of years. A usage based subscription is simply a subscription where users will be billed based on the usage they have done. This kind of subscriptions can be used in various different 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. i.e. how many VODs 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. i.e. petrol


Setting Up Usage Based Subscriptions and Core Processes

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

UDRs

 Configuration / Billing Application / Subscription & Billing Settings/ UDR Settings

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

Units of Measurement


 UDR unit of measurement are 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 liter, 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.

UDR Types


UDR Types are used to classify and group UDRs based on their business meaning. Each UDR type can have a set of metadata attributes which will be applicable to UDRs of that UDR 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 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.

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


Usage Service Catalogs

Finance / Product & Pricing / Usage Service Catalogs / Manage Usage Service Catalogs

Usage Service Catalogs are used to maintain all usage service information and to define the business rules, dependencies and prerequisites between services that determine the services that are allowed to be offered to subscribers and the conditions that should be fulfilled in order for those services to become available. Services included in a catalog are made available for ordering through a subscription as long as the catalog is valid and effective. Catalogs can be valid for specific period or always depending on how validity is set up.

Services can be added in usage service catalog as itemized or as a group (i.e. add available services in the catalog by providing product, product type or product family).

 For each service provided in the catalog you can provide the times within which it will be available using the start and end date.

Services included in the catalog can only be available for ordering through a subscription, given that conditions (if any) defined on the catalog are met. There are multiple conditions you can set, such as specific subscription type, subscription termed service, or account classification. This allows you to create multiple catalogs with different services which will only be available for ordering to different subscribers.

Catalogs can be created and not be effected if you don't want to make them available yet. They can be changed between effective and not effective by using the respective actions in the Action menu.



Recommended additional setup


In addition to the Usage Based Subscriptions specific settings the following may be configured for the Usage Based Subscriptions to operate at its full capacity.

  • Products:
    • Product Types: Set up product types of usage service classification and select the UDR type which will be used during billing.
    • Products: Set up the products used as usage services. These are the services (products) provided upon customer request and which are billed, based on their consumption, such as a film (VOD), a telephone call or even petrol refuelling.
  • Price Plans: Provide the rates by which usage service will be rated in the price plans. When adding a rate for a usage service the only rate model available is the usage based model.
  • Subscriptions & Billing
  • Provisioning: Provisioning setup is only applicable to OTT business where you can use to define the usage services, film etc. which will be ordered by subscribers, along with the respective ids, so they can be identified by the video platform.
  • Metadata: Set up metadata attributes which can be added to UDR types

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Using Usage Based Subscriptions

As aforementioned if you would like to create subscriptions for usage based services you just need to follow the normal flow of subscriptions. Usage based subscriptions can either be normal or prepaid. 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 fulfil different 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. In case that 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 from a third . 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 catalogs then usage services may be ordered. Availability of a service depends both on the validity dates of the catalog and the product. It is also possible to order a service for a time in the future, depending on the service's availability. 

 

Rating and Billing Usage Services


The procedure for billing usage services involves processing UDRs and is different in Prepaid and Normal Subscriptions.

In prepaid subscriptions, billing of usage services results in debiting a wallet associated with the subscription.  UDRs are processed as soon as the Add Service Usage subscription action is submitted.  The service can be added, provided there are sufficient funds in the subscriber's wallet.

In normal subscriptions, billing of usage services results in debiting of the accounts receivable associated with the subscription.  UDRs are processed either during the next billing run or as soon as the maximum number of unbilled UDRs or maximum unbilled amount is reached, as configured in the Billing Term Scheme.

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.


Managing UDRs

Billing / Billing / Manage Usage Detail Records

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 from the Data Entry page by using the respective action available from the Actions menu.

  1. Adjust the following as necessary:
    • Product: the service that was used
    • Usage Amount: the quantity consumed
    • Source: the system that generated the UDR (filtered on UDR Type)
    • UDR Type
    • UDR Billing Effective Date
    • From and To Date: the period during which the service was used
  2. Click on SAVE on the Modal. 

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 from the Data Entry page by using the respective action available from the Actions menu. 

The billing of UDRs creates rated billing items (RBIs).  These have to be 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 Data Entry page Actions menu: 

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

The billing of UDRs creates rated billing items (RBIs).  These have to be 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.

Action

Set As Billable

 Set As Creditable Set As Not To Be Billed

Prerequisites

  • Life cycle state must be 'Posted'
  • Billing Directive must not be 'To Be Billed'
Billing Directive must not be 'To Be Credited'
  • Life cycle state must be 'Posted'.
  • Billing Directive must not be 'Not To Be Billed'


Business Flows


Setting up an OTT usage based model

Scenario

Aluxsat Co. has introduced new packages for (over-the-top) OTT subscribers. The OTT packages include several PPV (pay-per-view) film.

• Film are charged €5.00 when provided between 00:01 and 6:59 and €10.00 during the rest of the day.
Older filmS are always charged €3.00.
• To order a PPV film, subscribers must have an 'Effective' PPV service on their subscription.
• Films are free for VIP subscribers.
• Movies should be billed instantly.

Customers can place their orders from their decoders or by calling the call center.



Solution

To meet the above requirement:

• Product types of classification 'service' and service type 'usage' and 'termed' must be configured.
• Movies must be imported or created in the system with a usage service classification product type.
• Provider must be configured (provisioning IDs for each OTT Service should be defined).
• Usage service catalog definitions must be configured and activated.
• Two usage service catalogs must be created including the available films, one for VIP and one for normal subscribers.
• Normal billing term scheme and usage service billing rules must be set for billing to take place whenever one or more films are added.

Configuration

Product Types

Product TypesClassificationService TypeComposition MethodUsed For Provisioning
Usage ServicesServiceUsageFlatYes
Termed ServicesServiceTermedFlatYes


Products

ProductTypeInformation
PPV ServiceTermed ServicesNecessary in order to authorize the addition of PPV film to the subscription.

PPV movies

One product must be created for each available PPV film.

Usage services are added in usage service catalogs (not price plans).

Lord of the Rings 1Usage service
SerendipityUsage service
LimitlessUsage service


Date/time Models

Off-peak hours

00:01 - 06:59


Provisioning Provider example
NagraVision Media Live provider

Provisioning ProviderProvisioning ProtocolEnd PointUsernamePasswordEncodingDistributorsServicesPhysical Goods
Nagra Media PlatformNagra Media Live Platformhttp://ott.nagra.com/customer/VTV/api/smsservice_1.2?wsdlRequest passwordRequest passwordUTF-8Nagra Media Live Main

Define through usage service catalogs

Thomson decoders
Usage Services Provisioning information
Usage ServiceProvisioning ID
Lord of the Rings1AQ8
Limitless1BQ1
Serendipity (old movie)1BQ4


Price Plan

Usage Services
Usage ServiceBase RateTiered RateConditions
Lord of the Rings€10.00€5.00

Date time model: off-peak hours

Limitless€10.00€5.00

Date time model: off-peak hours

Serendipity (old movie)€5.00

 

Usage Service catalog for VIP Subscribers

Provisioning ProviderValidityUsage ServicesAccounts Receivable Conditions


Usage ServiceBase RateProvisioning IDTiered RateConditionsComments
Nagra Media Live PlatformAlways ValidLord of the Rings€0.001AQ8€0.00

-

Usage service details will be set automatically according to the definition (base rate, tiered rate, tiered rate conditions); the user must manually update all to 0 and remove tiered rates.

Classification = VIP
Nagra Media Live PlatformAlways ValidLimitless€0.001BQ1€0.00

-


Usage service details will be set automatically according to the definition (base rate, tiered rate, tiered rate conditions); the user must manually update all to 0 and remove tiered rates.

Classification = VIP
Nagra Media Live PlatformAlways ValidSerendipity (old film)€0.001BQ4€0.00-

Usage service details will be set automatically according to the definition (base rate, tiered rate, tiered rate conditions); the user must manually update all to 0 and remove tiered rates.

Classification = VIP

Normal Billing Term Scheme

Usage Services Billing Rules
Maximum number of unbilled UDRs
1


User Process
Subscribers can order PPV films through:

  • A portal that can be integrated to CRM.COM using its WEB API library
  • A subscriber device that is integrated with CRM.COM
  • The CRM.COM User Interface, using Add Service Usage.


On this page

For the developer

Check out the Usage Based Subscriptions WEB API for a complete list of actions available used to integrate CRM.COM to external systems

WEB API

Analytics

Check out reports and dashboards available for Usage Based Subscriptions

Analytics

Release news

Check out a full list of CRM.COM features available per release.

Features

Check out upgrade notes to find out what needs to be done to upgrade from your current release to the latest release of CRM.COM.

Upgrade Notes