Telecom and Internet Service Providers operate in markets where usage varies drastically from one customer to another. While flexible, usage-based models align revenue directly with consumption, they also introduce operational challenges like real-time tracking, precise rating, and transparent invoices.

A regional internet service provider, having 25,000 residential customers and 3000 small businesses, decided to move away from the traditional fixed monthly broadband plan. They let the customers pay entirely based on how much data they consume rather than setting up a standard base fee. The structure is simple,

• $0.40 per GB for the first 500 GB

• $0.30 per GB for the next 500 GB

• $0.20 per GB beyond that.

This model gives customers flexibility while ensuring revenue reflects actual network usage. To make this model work,

1. The ISP (Internet Service Provider) must capture live data usage from its network monitoring system.

2. Rate the usage according to defined tiers.

3. Generate accurate invoices each billing cycle without manual calculation.

 With Zoho Billing, a usage-based pricing engine, and API integration, the ISP connected its network management platform directly to its billing system. Every gigabyte consumed by a customer was sent as a real-time usage record.

 
The invoices were then generated automatically, including a detailed usage summary. The customer could view their live usage within the client portal through data fed directly from the same APIs, providing transparency throughout the month.

A telecom operator runs a postpaid service where users subscribe to a base plan, and the customer pays for additional voice and message usage. It has a strong customer base of over 120,000 postpaid subscribers. The base plan costs $50, covering 100 minutes of domestic and 50 international calls and 100 SMS. Additional usage costs:

• $0.05 per minute for local calls.

• $0.10 per minute for international calls.

• $0.01 per SMS

Managing this type of billing requires:

1. High-volume usage capture from the telecom mediation system.

2. Accurate categorization of usage (local vs international calls, SMS).

3. Real-time rating to prevent discrepancies.

4. Generation of detailed transparent invoices.

Since the telecom operator handles millions of call records monthly, even small inefficiencies could lead to significant revenue leakage.

 
The invoice generated through Zoho Billing gives a clear usage summary. This transparency strengthens customer confidence and reduces disputes over billed usage. Telecom providers maintained their pricing structure with minimal billing overhead, scaling up new offerings without changing their core system.

As we drive across industries in each post, the next sector, the next post will be on Usage Billing in Logistics & Delivery.