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Our mission is to identify and explain the technologies and applications that allow television services to be provided through Internet Protocol (IP) data networks.  Readers learn the options and the system to implement IPTV along with new features and applications and business opportunities that are available in the IPTV industry today.

          

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IPTV Billing

 

Billing and Customer Care platforms for IPTV systems convert the bits and bytes of transmitted information such as IP Video or other services that are provided within multimedia distribution networks into the money that will be received by the service provider. To accomplish this, the IPTV billing and customer care system provides account activation and tracking, service feature selection, selection of billing rates for specific network events, invoice creation, payment processing, and management of communication with the customer. IPTV billing may combine digital television, telephone, data transmission and information services into a single billing system.

Billing and customer care systems are the link between end users and the communications network equipment. IPTV service providers manage networks, setting them up (provisioning) to allow customers to transfer information, and bill end users for their use of the system. Customers who desire IPTV services select carriers by evaluating service and equipment costs, reviewing the reliability of the network, and comparing how specific services (features) match their communication and media needs. Because most network operations have access to systems with the same technology, the billing and customer care system is a key criterion used to differentiate one service provider from another. IPTV systems can be managed networks or they can be unmanaged. 

This article is Part 1 of a 4 Part Series

IPTV Billing Series Article List 

Month

Introduction to IPTV Billing  Oct-05
Billing Systems Nov.05
Billing Standards Dec.05
Measuring Service Usage Jan.06

Managed IPTV

Managed IPTV is delivery of IP television services over a managed (controlled) broadband access network. Managed IPTV systems can control and guarantee the quality of television services. Managed IPTV systems are traditionally provided by telephone (telco) or cable service providers. 

Figure 1 shows a managed IPTV system. This diagram shows that for managed IPTV systems, the service provider can control transmission parameters in the user's access network to guarantee a specific quality of service (QoS) level in the access portion of the network. This example shows that a router in a data communications network can be programmed (managed) to give priority to packets with a particular address or type of service. When packets from a high priority source are received (media source #1), they are given priority over the packets that are received from other media sources. When packets of a 

Figure 1, Managed IPTV System

lower priority source are received, (media sources #2 or #3), they are discarded or delayed. This example shows that 3 users have different QoS levels. The IPTV customer receives a high priority level ensuring that they obtain a video signal with minimal distortion while the others are provided with data transmission rates that are determined by the remaining capacity (bandwidth) of the access network.

Unmanaged IPTV

Unmanaged IPTV (also called Broadband television) is the delivery of digital television services over broadband data networks. Unmanaged IPTV systems may be able to control and guarantee the quality of television services if the underlying broadband connections have enough bandwidth. Internet service providers or media management companies through broadband Internet connections usually provide unmanaged IPTV systems.

Figure 2 shows an unmanaged IPTV system. This diagram shows that the IPTV service company can provide IPTV service to any customer that is attached to a broadband distribution network. This example shows how a company that is connected to a IP broadband data network (such as the Internet) can provide IP television services directly to viewers without being able to directly control the underlying IP network. This example shows that while the unmanaged IPTV 

service provider may not be able to guarantee the quality of service (QoS), if the bandwidth in each leg of the communication link is high enough, it may be possible to provide traditional television quality.

Services

IPTV systems typically combine several different types of services. These include television (TV), data communication (e.g. Internet), telephone (voice) and information services (data manipulation).

Billing systems process the multiple usage events of network equipment during the media usage (events) and access/transfer of media into a single usage detail record (UDR). The billing process consists of: receiving event records from various networks and systems, combining multiple events related to a specific service usage into a usage detail record (UDR), determining the rates associated with each record, calculating the cost for each billing record, aggregating these records periodically to produce invoices, sending invoices to the customer, and recording payments received from the customer. 

The types of IPTV system parts that a customer may use in a network include system access (basic information transfer), information processing (such as interactive gaming), and content delivery (such as viewing a movie). When the communication service involves system access through different networks, the media is normally routed 

Figure 2., Unmanaged IPTV System

through a content aggregator and license fees or usage royalty charges may apply. License fees or royalties are the charges for access or use of media content.

Examples of system access services include digital subscriber line, cable modem, wireless broadband, optical fiber and other data connectivity services that transfer information between points. The IPTV service provider may own or control these access networks and bill for bill for data services.Information processing services include interactive gaming, voice mail, fax store and forward, and other services that involve the processing of information that is passed between two or more points. 

Content delivery involves linking customers to sources of information content and transferring the content to the end customer. Examples of content delivery include downloading movies, personal media channels, and the delivery of other sources of media that the customer requests. 

Television

Television broadcasting is the transmission of video and audio that is intended for general reception by the public, funded by commercials, subscription services, or government agencies. Traditional television radio broadcasters transmit at high power levels from several hundred foot high towers. While a high power television broadcast station can reach over 50 miles, IPTV can reach anywhere on the globe where there are broadband connections.

IP Television services include the delivery of local content and channels, network programming, on demand content and high definition television channels. Customers typically pay for television services through a combination of basic service fees, subscription channel access fees, and pay per view fees. The basic service fees typically include access to a limited number of television channels (local and network). Subscription channel fees provide the viewer with access to premium channels that are not available in the basic service. Additional usage fees may be charged for specific media selections and viewing events the user consumes over the basic service period.

In addition to the charging for basic content services, advertisers may pay the content provider a fee for the insertion of advertising messages. Because IPTV has the ability to deliver advertising messages to specific customers (addressable advertising), the selection and delivery of advertising messages needs to be tracked and billed to advertisers or advertising agencies. 

Figure 3 shows typical television services that create billing and service usage records for subscription and advertising services. This diagram shows that television subscription services include access to local content, live network programming and pay per view (on demand) services. This diagram also shows that usage records may be created for the selection and insertion of commercials and interaction with advertisements. This example shows that the money that is paid by the advertiser may go to the IPTV service provider.

Figure 3., IPTV Television Services

Data Communication

Data communication is the transmission and reception of binary data and other discrete level signals that can be represented by a carrier signal that can represent the discrete level (usually on-off levels) for signal transmission. Data communication providers have networks and transmission lines that can cover relatively large geographic areas.

Data communication services include basic access transmission fees and information processing (storage and hosting). Transmission services may include transmission rates, guaranteed quality of service levels and data transmission quantity levels. Basic access fees may include a physical connection (such as a DSL line) and an Internet access fee. Some data transmission services may come with a guaranteed quality of service level that may include minimum data transmission rates and packet loss rates.

Data processing fees may include data storage, account hosting and other network configuration charges. Data storage fees may be in the form of Megabytes (MB) or Gigabytes (GB) stored. Hosting fees may include domain management (address mapping), maximum 

Figure 4 shows typical data communication services providers typically bill for data transmission and data processing services. This diagram shows that a data subscriber is billed for basic data access service and additional levels of transmission service that may be provided including higher speed access, guaranteed quality of service (QoS) and amount of data transferred. This example shows that the data communication system routers and servers create event records that re combined to produce billing records. 

 

Telephony

Telephony is the use of electrical, optical, and/or radio signals to transmit sound to remote locations. Generally, the term telephony means interactive communications over a distance. Traditionally, telephony has related to the telecommunications infrastructure designed and built by private or government-operated telephone companies.

Telephone systems maintain connections between predetermined points in a communication network (telephone lines). Telephone systems interconnect through many systems and locations throughout the globe. 

Telephony services may include local, long distance, international, toll free (freephone), prepaid, calling party pays (CPP) and other types of voice communication services. Customers typically pay for telephone service that is a combination of a basic access fees and usage fees. 

Figure 5 shows typical telephony services include access and network services. Basic access services include telephone access to local and long distance networks. Network services include toll free (freephone) access, prepaid, and calling party pays services that may be originated in other systems. This diagram shows that telephony communication services requires interconnection to a variety of public telephone communication providers and that a single usage record may be created from usage events from many different networks. To settle call charges through these networks, billing records are sent to a clearinghouse.

 

Figure 4, IPTV Data Communication Services

Figure 5, IPTV Telephony Services

Information Services

Information services involve the processing of information that is transferred through a communications system. Information services may be provided through a variety of systems including television, data communication and telephone networks. Information service providers add value to information by acquiring, storing, transforming, processing, retrieving, utilizing or making available information via communication systems. 

Information services include gaming, news services, e-commerce, music downloads and other types of information processing services. Customers typically pay for information services through a combination of basic service access fees and charges for access to view or use media. The fees for information services may be directly billed to the customer (such as an e-commerce purchase) or it may be billed through an access network (such as a game that is downloaded through a service provider).

Information services or data manipulation that may be performed by the service provider or by other companies is called application service providers (ASPs). In return for allowing customers to access the information from other information service provider companies, some of the revenue generated from these information services is shared with the access provider.

Information services may be provided through variety of systems and access devices that have different display and navigation capabilities. This means that information service providers must adapt information into a variety of formats. 

Information services are provided to users rather than specific 

 

devices. To identify users, account codes and security keys are assigned to uniquely identify the user and the services they request and receive. Service usage records are assigned to these account IDs.

Figure 6 shows how an information services may be provided through a variety of access networks to different types of access devices. This diagram shows that information services are provided to users rather than devices so that an account code rather than a specific type of access device uniquely identifies each user. This example shows that the billing for information providers may be performed by direct billing from the information service provider or it may be billed and revenue shared by the access provider. 

Figure 6, IPTV Information Services

 
 
 

                                                       

 
   
   
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