How Oculeus assists telecoms to improve profit with origin-based pricing

Arnd Baranowski, CEO, Oculeus
Oculeus, a provider of OSS / BSS solutions for telecom companies, said mobile operators in India can benefit from origin-based pricing.

Indian telecom operators  can utilize origin-based pricing scheme to enable different pricing for fixed net calls that are terminated in a specific country. Telecoms can charge low fee for all national calls that originate in India, while charging higher fee for calls originating outside the country. Indian mobile operators can also fix lower fee for calls from neighboring countries than calls coming from outside the region.

Telecom operators in India can leverage new origin-based pricing schemes to increase its profits if introduced consistently across all its voice traffic. Indian operators rely on voice traffic for more than 70 percent of their annual revenue.

Origin-based pricing is one of the options for Indian telecom operators to improve margin on the revenue generated from international calls.

Indian telecom operators such as Bharti Airtel, BSNL, Idea Cellular, Vodafone, Reliance Communications, Reliance Jio Infocomm and Tata Docomo are under pressure due to competition.

Traditionally, voice calls have been priced according to the destination of a call and based on the location where it is terminated. However, in recent years, the concept of origin-based pricing has developed for which the price of a call is determined by considering not only its destination, but also its origin.

Origin-based pricing evolved from the need for operators to adjust their pricing and protect their margins in response to European Union regulations that require all intra-EU calls be charged as national calls. As a result, in origin-based pricing schemes, calls to the same destination can have two or more tariffs depending on from where the call originated.

Oculeus first introduced origin-based pricing and similar A-number charging methods into its Captura system in late 2013. Since then, Oculeus has enhanced origin-based pricing capabilities, which have evolved into a straightforward method with full usability with the management of other pricing schemes in the system.

Oculeus said it is experiencing demand for the functionality in its Captura wholesale voice management system that supports origin-based pricing schemes. Oculeus did not name its telecom operators clients.

“The demand for origin-based pricing started in Europe in response to the EU regulations, although today most telecom operators want the agility to dynamically adjust prices in order to protect their margins in light of increasing competition,” said Arnd Baranowski, CEO of Oculeus.

Baburajan K
[email protected]