According to a new report published by Introspective Market Research, titled, “Telecom Billing Software Market by Deployment Model, Billing Type, Service Type, Customer Type, End-User Industry, Global Market Analysis and Forecast, 2024-2032.
The global Telecom Billing Software Market size was valued at $12.98 billion in 2023 and is projected to reach $29.26 billion by 2032, registering a CAGR of 9.45 % from 2024 to 2032.
The telecommunications billing system is a comprehensive software solution that manages the processes, information, and contractual elements necessary to generate revenue for customer billing and telecommunications services. These critical systems typically include financial, information, and operations or service management. These can also include fraud management, profitability management, and revenue assurance solutions.
Telecom billing systems are complex and sophisticated platforms with several important functions. Platforms collect information about many network elements, such as switches, routers, and data servers. It also stores customer information, service orders, and billing settings. One of the key components is the Online Charging System (OCS), which adds real-time payments to every transaction. When a device interacts with a telecommunications system, a call data record is created that records and describes the interaction based on the type of interaction. If it is a call, for example, logs are recorded. In the case of data interaction, data usage is recorded.
The system uses a pricing engine to determine the cost of services and generate invoices that are sent to customers through various channels. The billing system processes payments using the payment methods chosen by customers. It also records payment statuses and sends reminders about late payments. Customers manage and manage their accounts, make payments, and receive support from the Customer Self-Service Portals and Customer Self-Service Handlers. Service providers use in-depth reporting and analytics to gain insights and insights into customer behavior, revenue trends, and performance metrics.
Sensors are an important part of the Internet of Things (IoT). With them, an ecosystem can be created to collect and analyze data from a certain environment, which makes monitoring, management, and control easier and more effective. IoT sensors are used in various situations such as homes, fields, cars, planes, and factories. The physical and logical worlds are connected by sensors that act as the eyes and ears of the sensor infrastructure that collects, processes, and interprets sensor data.
Telecom billing software has three main periodic billing options. Prepaid billing – During prepaid billing periods, payment is agreed upon in advance and the customer is billed in real-time based on usage. The customer receives a statement of fees at pre-agreed weekly intervals
Installment billing - this is the most common billing period. Customers use telecommunications services and are then billed based on usage over some time. At the end of each period, an invoice or account statement is prepared and sent to the customer. The customer then pays the bill through online transactions, credit cards, or mail.
Unified Billing - Consolidated billing is a different approach that can simplify prepaid or postpaid billing schedules. It has a visible structure - it combines all services into one invoice, unlike most traditional prepaid and postpaid systems, which store services in their invoice repositories. Bundled billing requires a single billing structure and is thus the most complex of the three main billing cycles, especially when customers use multiple services or have custom contracts.
Global Telecom Billing Software Market, Segmentation
The Telecom Billing Software Market is segmented based on Deployment Model, Billing Type, Service Type, Customer Type, End-User Industry, and Region.
Deployment:
The on-premises segment accounts for the majority of the market due to large enterprises investing in their software deployment and the availability of integrated or stand-alone modules that are deployed primarily at end-user locations.
Local solutions are also known as client space solutions. This is the most popular deployment type among operators. Most telecom operators use local systems because the infrastructure is already there and can be reused, saving a lot of time and cost to change the infrastructure.
Telecom billing and revenue management solutions are available as stand-alone modules or as an integrated platform, primarily implemented in end-user offices. An appropriate solution typically includes separate hardware purchases, software licenses, and annual support and maintenance fees; therefore, these deployment methods are popular in large enterprises.
End User:
End-user segment dominates the Telecom Billing Software market. Based on the End User, the Telecommunication Segment is expected to dominate the Telecom Billing Software market during the forecast period. Telecom billing software is widely used by telecom service providers to display various departments such as accounts, billing, and call information and estimate the usage or cost of various services.
This software allows service providers to accomplish various goals such as estimating data volumes and bandwidth consumption, providing access to technical support, and budgeting services. Telecom billing software helps service providers offer more services such as multi-unit pricing, usage-based billing, and real-time billing.
Region:
The North American telecom billing software market will further grow during the forecast period due to growing needs and demand for telecom services and solutions, growing demand for cost-effective billing, and a new technological revolution. North America is rapidly developing in the telecom billing software industry due to the growing demand for mobile and internet-based telecommunications.
In addition, the need to modernize billing processes and save money is driving market growth. The market also needs to modernize its billing processes and savings. Thanks to the widespread acceptance of cloud billing solutions, which are more affordable and efficient compared to company servers and on-premise systems.
The market is growing due to the adoption, revolution, and advancement of new technologies such as artificial intelligence and machine learning. Also, the market is increasing with increasing demand for customer experience management solutions, the market is growing, enabling telcos to better understand their customers and provide customized services and solutions.
Some of The Leading/Active Market Players Are-
- Amdocs (U.S)
- Oracle Corporation (U.S)
- Netcracker Technology (U.S)
- IBM Corporation (U.S)
- CSG International (U.S)
- Zuora Inc. (U.S)
- Hewlett Packard Enterprise Development LP (U.S)
- Optiva Inc. (Canada)
- Redknee Solutions Inc. (Canada)
- Ericsson (Sweden) and Other Active Players.
Key Industry Developments
- In February 2024, Amdocs Expands Strategic Partnership with Microsoft to Drive Generative Artificial Intelligence Innovation in Telecommunications and Media Enterprise Software and Services Company Amdocs (NASDAQ: DOX) today announced plans to expand its strategic partnership with Microsoft to bring vertical GenAI capabilities to the telecommunications industry. combines Amdocs amAIz platform and Microsoft Azure OpenAI service.
- In May 2024, Oracle and TIM Accelerate Cloud Adoption in Italy Oracle and TIM today announced a partnership to support the growing demand for cloud services from Italian public and private organizations. TIM Enterprise, a business unit focused on enterprises and the public sector, will integrate the Oracle Cloud Infrastructure (OCI) software into its portfolio as part of the agreement. In addition, TIM is the hosting partner for Oracle's second planned cloud site in Italy, located in Turin, hosted in TIM Group's reliable next-generation data center.
Key Findings of the Study
- North America leads the telecom billing software market thanks to cost-effective billing solutions, modernization of billing processes, and technological advances such as cloud computing and artificial intelligence.
- The market is dominated by the on-premises segment, where large companies prefer to deploy software with integrated or stand-alone modules.
- Market growth is fueled by the adoption of new technologies such as artificial intelligence and machine learning, as well as increasing demand for customer experience management solutions to tailor services based on individual preferences.
