Key Differences Between Billing and Charging Evolution (BCE) and TAP: Why Mobile Network Operators Should Adopt the New GSMA Standard
In telecommunications, industry standards and protocols are critical for smooth and efficient operations. They help mobile network operators (MNOs) manage aspects of wholesale roaming. This includes the clearing and settlement of data and financial transactions between partners.
Billing and charging processes in mobile networks commonly use two important frameworks. They are the newer GSMA Billing and Charging Evolution (BCE) standard, and the traditional, Transferred Account Procedures (TAP).
MNOs must consider key factors for future plans and product roadmaps. These include analyzing the differences between the two approaches and their importance in the industry. They must also consider how they allow seamless financial operations and the growth opportunities each offers.
GSMA Billing & Charging Evolution (BCE)
BCE supports real-time and near-real-time billing and charging, allowing MNOs to manage and monetize services more effectively and respond to customer usage patterns in real-time.
Designed with the future in mind, BCE introduces a new level of flexibility to charging and settlement models. BCE is designed to be highly flexible and scalable, accommodating a wide range of services, business models, and charging scenarios. It can easily adapt to new technologies and market demands. BCE streamlines and improves the end-to-end process of generating and settling invoices between MNOs, service providers, and customers.
The key features of GSMA BCE include:
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Comprehensive Standards — BCE defines standardized interfaces and protocols, allowing interoperability between various components of the billing and charging infrastructure. This ensures consistent data exchange and reduces complexities in integrating different systems.
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Consolidated Billing — BCE enables wholesale billing models which include both domestic and international roaming. This simplifies the billing process, improves transparency, and enhances the customer experience.
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Real-time Charging — BCE supports real-time charging capabilities, allowing MNOs to manage and monetize their services more effectively and respond to customer usage patterns in real-time.
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Roaming Settlement — BCE includes mechanisms for roaming settlement, enabling accurate and timely reconciliation of charges between MNOs for the services consumed by roaming customers. It is being promoted as a future-proof solution for comprehensive billing and charging needs.
Transferred Account Procedures (TAP)
Transferred Account Procedures (TAP) is an interconnect billing settlement system used specifically for the inter-operator settlement of wholesale charges. TAP is mostly transaction-based from a single source (take, a Visited Public Mobile Network, for example). This form of interconnect billing primarily focuses on the financial aspects of settling charges between MNOs. It ensures the accurate calculation and settlement of charges for services provided to wholesale customers or partner operators.
Key features of TAP include:
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Call Data Record (CDR) Exchange — TAP facilitates the exchange of Call Data Records. This contains detailed information about calls, data sessions, or other services provided by one operator to another. These records form the basis for calculating the charges and settling payments.
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Clearinghouse Agent — TAP involves the participation of a clearinghouse, which acts as a trusted intermediary between MNOs. The clearinghouse validates the CDRs, calculates the charges based on agreed rates, and manages the financial settlement process.
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Revenue Assurance — TAP focuses on ensuring revenue assurance for MNOs by reducing revenue leakage and discrepancies. The process involves thorough verification of CDRs, monitoring of data integrity, and reconciliation of charges.
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Dispute Resolution — For discrepancies or disputes between MNOs, TAP provides a framework for resolving issues through negotiation and arbitration. This helps maintain healthy business relationships and ensures fair settlement of charges.
Differences and Similarities
While both GSMA BCE and TAP are important frameworks for billing and charging, they serve different purposes. Each one caters to different aspects of the ecosystem.
BCE emphasizes customer experience. It also focuses on modernizing and streamlining the entire billing and charging process for all types of mobile services:
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Wholesale rating and exchange of records
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Real-time and near-real-time charging
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Highly flexible and scalable
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Modern technology to include XML and web services that enable real-time billing and charging
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Easily adapts to new markets and technologies
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Very data-centric
On the other hand, TAP ensures fair and accurate financial transactions between MNOs and is primarily concerned with:
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Roaming billing, particularly the exchange of records between carriers
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Part of the inter-operator settlement and dispute resolution
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Rigid file and exchange standards
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Inflexible rating – no real-time capabilities
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Dispute resolution
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Widely adopted for 30+ years and used in legacy billing systems
BCE, however, does carry over some the same features of TAP. It uses Transferred Account Data Interchange Group (TADIG) codes and clearing agents. Payment processes also remain the same (direct/netting), with no impact either on current fraud processes. Both also use the GSMA standardized exchange rate tool.
Even so, there are differences. MNOs do not have to decide whether to transition to BCE or stick with TAP for now. This choice depends on their business plans and customer needs in both the short and long term. For those that are turning down 2G/3G networks they should be looking at BCE to see if the added flexibility gives them more and better ways to clear and settle their roaming traffic.
As networks continue to evolve, the need for TAP will wane. We see this continuing for some time and will occur as a transition from TAP to BCE happens gradually. This change will simply not happen overnight, and we expect TAP and BCE to coexist for quite some time.
These shifts include:
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New technologies such as 5G SA/NA, IoT, and NBIoT and even 6G
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More online charging systems using real-time packet data
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Wholesale discount agreements among MNOs outside of TAP
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The desire for more visibility of roaming traffic by serving and served networks
To address TAP’s shortcomings caused by seismic changes in the industry, BCE presents a new approach with multiple advantages to operators.
First, it is a tailor-made solution all MNOs can adopt to reconcile records faster in a homogenous file format. MNOs are also able to settle without rigid file exchange or settlement windows. BCE supports end-to-end processes for current and new charging models. It also has a standardized reconciliation process, thanks to previously agreed upon intervals facilitated by bi-lateral agreements.
Choose a Practical and Feasible Approach
Despite all the complexities associated with monetizing wholesale roaming, BCE is not difficult to implement. Established GSMA standards are available for implementation globally. Many MNOs have already brought BCE from awareness to adoption. Through implementation, onboarding, and testing, Syniverse is ready to assess your readiness and help you to make the “clearing is clearing” simple and easy, while helping you to make the best business decision you can, without having to worry about the transport method. As you think about the transition from TAP to BCE, Syniverse stands ready to partner with you as it has over the last 35 years.
Learn more and contact us today!
