Origin Based Rating (OBR) is deployed in more than 10 EU countries as well as a growing number of destinations across the Middle East and North Africa (MENA). Carriers face an increasingly complex environment where OBR is being applied on a growing number of networks on an almost monthly basis.
The challenge for carriers of all sizes is to avoid penalty surcharges, both now and in the future, while minimising disputes with partners. Penalty surcharges can cause margins to evaporate and profitability to disappear almost overnight.
So, what do you do when OBR is imposed by one of the networks where you terminate traffic? Carriers have four choices:
1. Stop termination traffic to the destination
The carrier would face immediate loss of revenue.
2. Price everything at the highest possible rate
The carrier stops losses, but it means that it will no longer be competitive in the market.
3. Block the traffic with the highest OBR risk
The carrier reduces its exposure to OBR losses and is able to operate without risk of “bill shock” 3-4 months down the line. High-cost traffic to destinations that cannot be terminated profitably can be blocked. This avoids the surcharges that would cost several times the value of the associated revenue and cannot be billed to the customer.
At XConnect we provide a simple ‘block/allow’ service that allows the carrier to define the rules (i.e. which calls are allowed) for any given destination. The service has no or minimal impact on the network and support systems and can be implemented quickly.
4. Adapt OBR routing and accounting to cater for the differentiated rates and penalty surcharges
The carrier proactively manages its OBR risk and benefits from predictable margins by deploying call routing business rules for specific originations.
XConnect can hosts call routing business rules based on A/B number intelligence, which are defined by the carrier, and carriers can activate the business rules by sending SIP Invite to XConnect. Route instruction codes are returned which can be used by the carrier to route the call to the destination.
Dynamic business rules that optimise margins in real-time, including profit protection on a customer by customer and destination basis, can also be activated using the same SIP invite technique. Customers can define specific rules based on number intelligence, date/time, as well as rate and cost sheet information ingested automatically.
Make the Best Option the Easy Option
XConnect can help you to quickly complete an OBR impact assessment and understand the impact it is having on your business. You can assess the benefits of blocking just the highest cost traffic or take a deep dive and explore the benefits of a fully optimised, real-time OBR optimisation.
Whether you are a carrier with existing OBR solutions that requires the best number intelligence, or your existing OSS/BSS is constrained and you need a work around, or you don’t have a capability, XConnect offers solutions that match your business needs and make it as simple as possible to use data to tackle future OBR losses.
Already, some of the largest mobile network operators (MNOs) and carriers use XConnect’s number portability query service to complete over 10 billion lookups per year.
We’re ready to help you to use new intelligence to take control of your traffic.