Huawei Technologies

2005.10 8
 EXPERT’S FORUM
EXPERT’S FORUM

Shan Mingjun, a senior expert in the charging field. Currently he is the Vice Chairman of 3GPP SA5-Charging Group
and leads major charging activities related to OCS, IMS and EPC. In addition, he has been serving as Vice Chairman of
OMA MCC for two terms since August 2005.

Enabling convergent billing via OCS

As a development trend for the operation support system, convergent billing has a broad scope that is
not limited by a single standard. Its development may follow different directions. However, which is the
best direction?
By Shan Mingjun

T The evolution of OCS

he telecom industry is witnessing the
migration of both networks and voice
services to comprehensive information
service provision. Network technologies
are integrating. Both service models and the industry
chain are transforming due to the ongoing fixed
mobile convergence (FMC) and the combination of
IPTV, telephony and Internet networks.
With its roots in a convergence environment,
convergent billing is not a nascent concept. It existed
before the online charging system (OCS) came into
being, although the two are now growing together
and supplementing each other. Based on the IP
multimedia subsystem (IMS) and defined by 3GPP
TS32.296, the OCS has gradually emerged as the
basic charging infrastructure for the bearer, sub-
system, and application layers.
As a development trend for the operation support
system, convergent billing has a broad scope that is
not limited by a single standard. Its development
may follow different directions. However, which is
the best direction? The answer lies in the analysis
of OCS development within the 3GPP framework,
coupled with an evaluation of the driving factors and
key capabilities required by convergent billing.
3GPP Release 5 saw OCS in its infancy stage. It
was framed to perform credit control and charging
for IMS and packet transport networks. The OCS
supported entities such as the serving-call session
control function (S-CSCF), application server, media
resource function controller (MRFC), and GPRS
support node (SGSN) accessed through the CAP
interface.
OCS was released and more fully defined
i n 3 G P P Re l e a s e 6 . Ba s e d o n c o re n e t w o rk
development, its functional entities were extended to
support bearer layer charging, event-based charging,
rating function, and account balance management.
As a result of network evolution, network
elements (NEs) accessed the OCS for charging
included the traffic plane function (TPF) and
wireless local area network (WLAN), as well as
S-CSCF, IMS gateway function, and media resource
function controller (MRFC). Based on IETF
DIAMETER, Release 6 also supported the accesses
of the multimedia messaging service server, gateway
mobile location center (GMLC), and multimedia

5 APR 2008 . ISSUE 40


broadcast and multicast service (MBMS).
Charging for prepaid voice services
was integrated into the online charging
system in Release 6. The OCS supported
CAP access to realize the charging for
prepaid voice services. In other words, the
intelligent network (IN) can be regarded
as the OCS’s voice processing component.
Release 7 optimized the OCS by
supporting online charging control for
open mobile alliance (OMA) enablers,
under which OMA applications were
facilitated by 3GPP infrastr uctures
to implement both online and offline
charging.
The major change in Release 8 is
to enable correlated online charging
among the bearer, subsystem and service
application layers during the service
processing. It ensures the integrity of
charging data to facilitate reasonable
charging modes. In addition, 3GPP and
3GPP2 will adopt a common set of IMS
architecture, enabling organizations such
as 3GPP2 and TISPAN to use OCS more
conveniently. The OCS will also support
wider access to richer network scenarios.
As one of the major protocols to access
IN, CAMEL has been playing a crucial
role in terms of prepaid voice services.
OCS was specified to suppor t CAP
access since Release 6. Differing from the
DIAMETER-based Ro protocol, CAMEL
is implemented independently from
the OCS as a charging access protocol.
CAMEL’s development in 3GPP began
in 1997 and its original version was
embodied in Release 99. CAMEL 4 was
defined in Release 5 and maintained in
Releases 6 and 7.
Convergent billing’s
drivers and capabilities
Driving factors
The development of convergent billing
goes along with the changes in both
telecom network architecture and new
service development. As a focus in the
telecom charging field, convergent billing
is driven by the following core factors:
A L L I P n e t w o r k d e ve l o p m e n t :
As circuit switched (CS) based or IN
based services are shifting to ALL IP
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based, charging systems should offer
support accordingly. Service based on the
session initiation protocol (SIP) cannot
be effectively implemented without a
convergent billing system. SIP-based IMS
forms the direct technical driver.
Expanding new services: A robust
charging system is necessary for the quick
deployment of new applications and
combination of new services. Prepaid
and postpaid charging convergence
coupled with flexible charging modes can
benefit operators by providing a range of
combined services for customers, which
accelerates the service provision and
effectively tailors services to suit individual
needs.
Unified service provision: In the early
stage of service development only postpaid
customers can access some services due to
a high credit rating requirement. GPRS
provides an example of such a service for
which prepaid customers had to wait a
considerable length of time. Convergent
billing will mitigate this problem by
facilitating unified services for both
prepaid and postpaid customers.
In addition, convergent billing
APR 2008 . ISSUE 40 6
 EXPERT’S FORUM
Enabling convergent billing via OCS
architecture enables the charging of
services provided by third parties, such
as SPs, while customer loyalty can be
enhanced through flexible tariff packages.
Four fundamental capabilities
As detailed above, the catalysts for
convergent billing mainly derive from
changes in network architecture, new
ser vices, and customer needs. Four
fundamental capabilities are required for
the successful operation of a convergent
billing system:
Real-time charging. This applies to
charging for convergent networks and
services. Charging lays the foundation for
telecom operations. The essence of the
charging is to meter network usage and
statistics of service requests. Billing is over
charging.
One of the essential parts of charging
is to redefine charging elements, and then
redefine the structure for network and
service control. This simplifies charging
methods. Charging now observes service
use logic instead of service use quantities.
This also presents a challenge in attempting
to define the interoperation between the
charging system and the network.
Bundled service charging. This seeks
to satisfy the mixed subscription of voice,
message, and data services. A new difficulty
has emerged concerning charging based on
ad-hoc scenarios, which has arisen due to
greater freedom requested by customers.
While this increases the challenges face
by operators and equipment suppliers, it
potentially yields higher customer returns.
Postpaid based Postpaid based
on offline charging on online charging
Fig. 1 Charging logic of prepaid and postpaid services
7 APR 2008 . ISSUE 40
As 3G packet networks
increase demands on online
charging systems, OCS
will be gradually deployed
worldwide following the
conclusion of its current
and ongoing optimization
under the 3GPP framework.
Analyses attest that OCS
indeed forms the best
framework for convergent
billing implementation.
In China, the number of fixed
broadband customers has grown
explosively since 2002, having increased
on average by over 50% each year. On
the other hand, Chinese fixed network
operators have witnessed decreased
monthly tariff and reduced revenues,
although the quantity of broadband access
has increased. This illustrates that simple
tariff models cannot help increase ARPU
or implement flexible pricing for niche
markets. Moreover, improvements will not
be derived from increased bandwidth or
Internet services.
Converged rating engine. Service
variety embodies a major development
Prepaid based
on online charging
driver for operators and SPs under which
a flexible and open rating engine greatly
assists new business mode development.
A rating engine should be able to charge
any event and combined services. Some
believe that the rating engine can exist
independently from the charging system
and provide open interfaces. Whether the
rating engine is independent or internally
integrated, the key capabilities of the
convergent billing should include open
and unified interfaces, as well as a holistic
service charging mechanism.
Customer-centric data organization.
Great variations occur in prepaid and
postpaid user experience during different
charging stages, and this is largely related
to deployed technologies.
With customer service upgrades, the
distinction between prepaid and postpaid
services is increasingly blurred. From a
technological standpoint, convergent
billing should facilitate the switching
between customer groups, allowing a
customer to select prepaid charging for
some services, while postpaid charging for
other services to enhance usage flexibility.
OCS is the best direction
As demonstrated in its development,
OCS can deliver a flexible, swift and
real-time charging function. It solves the
problem of prepaid and postpaid service
shifts, and enables operators to quickly
assess customer needs in order to more
accurately plan the launch of new services
and convergent schemes.
A s 3 G p a c k e t n e t w o r k s i n c re a s e
demands on online charging systems,
OCS will be gradually deployed worldwide
following the conclusion of its current
and ongoing optimization under the
3GPP framework. Analyses attest that
OCS indeed forms the best framework for
convergent billing implementation.
Ensuring compatibility
The 3GPP OCS is heading toward
multiple charging access provision for
networks bearing different services. To
meet network evolution demands, the
OCS’s internal components are further

abstracted and modularized, and the Rc
and Re reference points are optimized.
In Release 7, charging data elements are
designed to support charging based on data
over cable service interface specifications
(DOCSIS) in order to enable seamless
access to DOCSIS networks. Charging
elements for OMA enablers have been
redesigned in line with the original 3GPP
charging architecture.
Currently Release 8 is enhanced to
support further convergence of fixed and
mobile networks. Organizations such as
TISPAN and 3GPP2 regard 3GPP as the
best basis for integration, and this further
ratifies the compatibility of 3GPP OCS
during network convergence.
Fulfilling convergent billing needs
A logical foundation is laid for service
convergence since the OCS embraces event-
based charging and session-based charging.
This meets the charging criteria for both
voice and data services, and for the bearing,
subsystem, and application layers.
The charging network is evolving
from postpaid BOSS or prepaid IN to
convergent billing. The OCS rating engine
comprises the cornerstone of this process,
while Re reference points facilitate rating
engine deployment and fulfill new service
development requirements.
The convergent billing system plays a key
role in data organization and coordination,
and forms the largest customer database.
The OCS yields best practice with respect
to organizing billing data of all customers
and services, which is essential given that
the online charging data describes one
of the most complex data streams. Fig.
1 illustrates charging logic for various
scenarios: online and offline, post and
prepaid. Several charging modes and their
combinations are possible, including near
real-time charging for postpaid or prepaid
services, and charging for prepaid service.
Online charging (based on Ro and
CAP interfaces) and offline charging
(based on the Rf interface) describe the
interaction between NEs and charging
systems. Postpaid and prepaid indicate the
interaction between account balance and
user payment. As a result, user experience-
based concepts – prepaid, postpaid, near
The charging system’s
architecture must be designed
according to network and
service development, and
network architecture should
in turn adapt to the charging
system. This is one of numerous
concepts underpinning core
network layout, although
conjoining the charging system
and the network is not an
absolute must.
real time and real time – can be seamlessly
mirrored to network-based concepts such
as online and offline charging.
The bill-based, postpaid BOSS and
the independent prepaid IN charging
system are evolving into a convergent
billing system. The OCS can develop by
expanding itself in the context of account
balance management. The OCS can also
develop by integrating BOSS and IN,
under which OCS serves as a core for
them both. These define shortcuts for
the development of a convergent billing
system. Data organized in this mode in
the convergent billing system provides
enhanced support for various customer
types and user-oriented services.
From charging system to
charging network
In the convergent billing, charging
technologies are going to resemble a
“charging network” as opposed to a
“charging system”. The charging network
recognizes that charging is neither a
separated nor after ward event. The
charging system originally forms part of
the support network and can be regarded
as a supporting platform for networks or
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services. In a converged environment, the
charging system is unable to complete the
entire charging process. Many network
evolutions, however, are stimulated by
changes in charging requirements.
The charging system’s architecture
must be designed according to network
and service development, and network
architecture should in turn adapt to the
charging system. This is one of numerous
concepts underpinning core network
layout, although conjoining the charging
system and the network is not an absolute
must. In fact, independent networking of
the charging system is more desirable for
network architecture.
3GPP delivers an apposite example
of “charging network” application.
Encouraging results include TPF
introduced in Release 6, and, in Release
7, implementing the policy and charging
enforcement function (PCEF), and
achieving deep IP packet detection
and parsing of content-based charging.
Furthermore, IMS supports the generation
and delivery of charging IDs, which
can identify the relation of charging
information generated at each node,
facilitate the correlation of charging
information, and ensure the integrity of
charging data.
Commercial requirements are
constantly emerging and new charging
technologies are arising to keep pace with
market needs. It has been a challenge for
operators to implement content and policy
charging, as well as flexible volume based
charging. International organizations such
as 3GPP and TMF have been working
continually to reach solutions based on
commercial requirements and suppliers’
proposals. Operators as the users of the
technology, however, broadly shed doubt
on suppliers’ solutions.
Nowadays, technologies no longer form
an obstacle in terms of service promotion.
Deep IP packet detection technology has
satisfied the requirements for content or
volume based charging, and as such has
achieved a goal that was once regarded as
impossible. Furthermore, other leading
technologies, such as online correlated
billing, are heading confidently into the
arena of maturity.
Editor: Huang Zhuojian huangzhuojian@huawei.com
APR 2008 . ISSUE 40 8