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Service usage is the measurement of a type of usage of content or service. IPTV services can be a combination of television/video, data communication, telecommunication, and information services so there are thousands of potential service identification codes in a single IPTV billing system. Service usage fees may be a mixture of recurring (periodic) or one-time (single) charges that occur over a billing cycle.
Periodic Charges
Periodic charges are fees that are associated with a product or service that is assessed on a regular interval (i.e. monthly, quarterly, annually).
Periodic charges may be prorated based on the duration of service used during the billing cycle. Prorating is the process of fractionalizing charges for a partial period. In order to determine the partial charge, the number of days that the service was available to the customer is multiplied by a per-day-charge called a "Multiplier".
Activation Fees
Activation fees are one-time fees that are charged for the initial setup of communication service. Activation fees are also called "setup fees."
Equipment Leasing Charges
Equipment leasing are the charges assessed for the use of equipment. Equipment leasing options for IPTV include set top boxes, modems, routers, televisions and any other type of equipment that can be used in the customer's premises to allow for the reception, distribution and display of IPTV media. |
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This article is Part
4 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
IPTV Service Usage |
Jan.06 |
Penalties Penalties are charges that are assessed for actions or service usages that fall outside the agreed limits of service usage. Penalties can include early contract termination fees, charges for lost equipment or the usage of services by unapproved devices (e.g. media storage devices).
Late Fees Late fees are charges that are added to an account or invoice for failure to pay charges by the due date or series of due dates that have been previously agreed upon by the customer. The assessment of late fees may be regulated so that pyramiding of late fees does not occur. Pyramiding late fees is the charging of late fees from a previous invoice period so that the payments applied are not enough to cover the current late fees resulting in the assessment of additional late fees.
Disconnection Charges Disconnection charges are fees that are assessed for the disconnection of a service. Disconnection fees may be charged if the user fails to pay the account balance and the service is disconnected for non-payment; or if the customer has requested to disconnect service before the term of the service agreement is complete.
Re-Activation Charges Reconnection charges are fees that are assessed for re-connecting a service that was previously disconnected. Reconnection charges may be lower than new service activation charges because much of the setup work may have already been done and customer information is already |
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available which reduces the amount of effort and resources that are required to reactivate the service.
Discounts
Discounts are reductions of pre-established fees or tariffs that are given for specific reasons. Discounts may be in the form of a specific amount or they may be based on a percentage of an item's price or invoice amount. Discount types may be coded using specific identification codes and discount rates may be applied based on the specific type of sale or customer category using a discount schedule. The account representative may grant discounts on an ad-hoc basis to a specific customer.
A discount schedule is an itemized list or table that provides pricing discount information for products or services. The price discount schedule will usually include the amount of discount based on usage volumes, quantity of product purchased, and the types of customers that qualify to receive the discounts (e.g. wholesale, education, retail).
Item Usage Fees
Item usage fees are the charges or assessments for the authorization to access (the service may not actually be used) or usage of products and services. Item usage fees can be based on duration, volume or type of service.
Duration Based Usage Charges
Duration based usage charges are fees that are assessed for the amount of time a service is authorized for use. An example of a duration based usage charge is the providing of access (or the right to access) to specific items or services for a defined time usage criteria (e.g. authorization to watch a movie during a 24 hour period).
Volume Based Usage Charges
Volume based usage charges are fees that are assessed for the amount of service that is consumed. An example of a volume based usage charge is the providing of quantity of service (or the ability to consume a specific volume) to specific items or services for a defined quantity (e.g. the amount of data transferred, or number of movies downloaded).
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Quality of Service (QoS)
Quality of service (QoS) fees are charges or assessments for providing services at a specified level of performance. QoS fees may vary based on the requested quality of service level and the actual delivered quality of service level. For example, if the customer requests a communication service guaranteed data transmission rate such as a committed bit rate
(CBR) of 1 Mbps, this may be an upgrade to an available bit rate (ABR) service data connection.
Overage Charges
Overage charges are fees that are imposed or added to an account for having exceeded the allocated amount of usage for a defined level, or quantity of service, or time period.
Data Storage Fees
Data storage fees are charges for the allocation and/or usage of storage media. Storage fees may be charged for raw data storage or for the storage of particular types of media (such as movies, pictures and voice mailboxes). Data storage fee rates may vary based on the reliability (such as backups) and data transfer performance available from the data storage device.
Figure 1 shows some of the common types of service usage metering. This diagram shows that the types of usage metrics may include the amount of time a service has been used, how much of a service may be used, the number of times a service has been used or activated, the type of use (e.g. single viewer or public viewers), quality of service (e.g. high resolution or low resolution) or the location of the service access point (e.g. home or at a visited/away location).
Advertising Fees
Advertising is the communication of a message or media content to one or more potential customers. In addition to revenue from providing services or content to subscribers, additional revenue may be received from advertisers.
Ad insertion is the process of inserting an advertising message into a media stream such as a television program. For broadcasting systems, advertising messages are typically inserted on a national or geographic basis that is determined by the distribution network. For IP television systems, Ad inserts can be directed to specific users based on the viewer's profile. |
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IPTV service offers the option to insert advertising messages into programming at a variety of distribution points. Advertising services for IPTV systems include network advertising, (to all viewers), regional advertising (spot ads), ads to specific viewers (addressable ads) and interactive ads (ads that the viewer can immediately react or respond to).
Charging an advertiser for the delivery of advertising messages includes fees for ad impressions and ad selections. Ads may be inserted on a guaranteed or space available basis.
Ad Impressions
An ad impression is the presentation of an advertising message or image to a media viewer. Charging for ad impressions on an IPTV system is different because it is possible to pay based on the actual impressions to specific viewers. The better the profile of the viewer matches the desired audience of the advertiser, the more valuable the ad impression becomes.
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Ad Selections
Ad selection is a choice or option selected (e.g. clicked) by a viewer during an ad impression. Unlike broadcast television services, IPTV systems typically allow for a return communication channel along with the ability to redirect programming to specific advertising segments. IPTV service providers can charge for ad links selected by customers and because ad selections indicate an interested prospective customer, ad selection value can be hundreds of times higher than the value of ad impressions.
Equipment Purchase Charges
Equipment purchases are charges for devices that a customer may be allowed to control and keep. Equipment purchases may be required or optional. |
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Equipment Insurance Fees
Equipment insurance is
charges for the protection or financial recovery of assets that may be
damaged or lost for specific reasons.
Adjustments (Credit or Debit)
Adjustments are changes to
item charges, invoices or account balances. Adjustments are typically made
to correct errors or to provide satisfaction to customers for billing
errors or services that did not meet expectations. Some of the common
adjustments include charge waivers and refunds.
Because accounting reports are periodically
created for management and tax purposes, adjustments are made rather than
changing previous invoice information as these changes would alter reports
that were previously produced. Adjustments therefore appear on the next
bill cycle's invoice.
Charge Waivers
Charge waivers are credits
that are applied to an account or invoice to reverse a charged item or
fee. Waivers may be full or partial and appear on the next bill cycle's
invoice.
Refunds
Refunds are credits that
are applied to an account or invoice to reverse a previously received
payment. Refunds are actual payments made directly to the customer.
Finance and Interest Charges
Finance and Interest
charges are the fees charged for overdue balances.
Bill Rendering (Paper or CD ROM) Fees
Bill rendering fees are
charges for the production of billing records in specific formats such as
paper or other forms of stored media (e.g. CD ROM). The fees for bill
production (bill rendering) may vary based on the detail level that is
included in the bill format.
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Network Access Charges
Network access charges are fees or assessments for the usage of
particular network resources such as communication circuits, channels or
access points.
Circuit Charges
Circuit charges are fees or assessments for the allocation or dedication
of communication paths between access points in a communication network.
VPN and PVC Charges
Virtual Private Network (VPN) and Permanent Virtual Circuit (PVC)
charges are fees or assessments for the setup and management of logical
(virtual) connections in a communication system.
Port charges are fees or assessments for the providing of access points
(ports) into a communication network.
Taxes
Taxes are charges or levies assessed by a government agency or authority
for services that are provided or products that are sold and sales that
are defined by the government as a taxable commodity. There can be many
types of taxes imposed on a service provider and the calculated tax fees
depend on the type of service provided, the location of the service and
potentially other criteria. Taxes may be assessed by a combination of
national, regional and local authorities.
Regulatory Surcharges
In addition to taxes, communication regulatory agencies may impose
additional fees (surcharges) to assist in the costs of management and
development of public communication services. |
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Interconnection Access Surcharge
Interconnection access surcharge are fees that are collected to help develop access systems that allow customers to select alternative communication access providers.
Emergency Services Surcharge
Emergency services surcharge is the fee that is collected from a user of communication services to help operate emergency services such as Public Safety Answering
Points(PSAP). PSAPs are facilities that receive and process emergency calls. The PSAP typically receives the calling number identification information that can be used to determine the location of the caller. The PSAP operator will then initiate and/or route calls to assist with the emergency situation.
Universal Service Charge (North America)
Universal service charges are fees that are collected from service users in a communication system to subsidize the construction of communi |
-cation systems in rural areas to allow people in all areas within a country to have affordable access to communication services.
Security Deposits
Security deposits are asset collections that are controlled by a service provider or company for the assurance that a person or company will fulfill their obligations such as performing an action or payment for services.
Other Charges & Credits (OC&C)
Other charges and credits are fees or assessments for services or products that cannot be classified in other categories (e.g. miscellaneous charges).
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