Convergent Billing Market is Booming globally with Marginal Growth

Posted by Mrudula Anil Karmarkar on July 26th, 2023

 The global convergent billing market size is expected to reach USD 67.34 billion by 2030, growing at a CAGR of 21.6% from 2022 to 2030, according to a new report by Grand View Research, Inc. With the growing emergence of smartphones driven by additional capabilities beyond voice and text messages, such as television screens, music players, travel guides, internet browsers, and maps, the conventional network billing model is becoming outdated. Convergent billing unifies all these services under one consolidated bill, which enables customers to have a unified view of all the services they have opted for, making the consumer experience more satisfactory.

The telecom industry has evolved over the past few years due to technological advancements in smartphones and internet connectivity. Telecom operators are now required to offer multiple services, where customers can make purchases from third parties, such as digital content providers. Telecom providers are incorporating these third-party services into one platform, offering their customers discounts and cross-service price concessions. To keep up with these changing trends, telecom providers are deploying convergent billing software, consolidating all these services under one catalog or bill for the customer.

By consolidating all the services under one catalog or bill, telecom providers can better understand their customers and offer customized services. With the ability to provide a rich customer experience, telecom companies are focusing on enhancing their marketing strategies. Moreover, convergent billing creates one platform for postpaid and prepaid services, streamlining business operations. The benefits of convergent billing drive the adoption of the software from telecom companies, thereby driving the market's growth.

Smartphone usage for various use cases, right from calls & voice messages to work, increased during the COVID-19 pandemic. With this increased smartphone usage, telecom companies have to store and process large amounts of customers' data. The traditional business support systems (BSS) are inadequate in handling this data. Hence, telecom companies are adopting convergent billing solutions to keep up with customers' increased demand, thereby driving the market's growth.

A convergent billing platform is a revenue management platform used by the telecommunication industry to integrate all service charges into a single customer bill. The consolidated statement gives customers a unified view of all the services they have opted for. The industry growth can be attributed to the reduced cost of billing processes, enhanced customer experience, multiservice packaging and pricing that allows customers to opt for the services at discounted prices, and centralized customer support.

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Over the past decade, the use of telecommunication systems has increased considerably. According to the International Telecommunication Union World's Telecommunication Indicators database, the number of cellular subscriptions was 106 per 100 users. The increasing adoption of cellular subscriptions has increased the customer billing database that telecom companies deal with. Convergent billing can offer telecom companies a unified view of their service offerings.

The large number of accounts that telecom firms handle can lead to data complications and human errors. Convergent billing reduces the chances of errors and improves customer service. Convergent billing offers telecom firms a pre-determined model for billing, which improves customer service, and increases customer loyalty and satisfaction. The increased business efficiency offered by convergence billing is driving the growth of the industry.

Convergent Billing Market Report Highlights

• Customer relationship management is expected to witness significant growth over the forecast period. It offers a platform/technology to manage the company's all interactions with customers and internal collaborations. CRM solutions provided by the convergent billing system help companies stay connected with their customers, streamline the interaction process, and improve profitability. The benefits offered by customer relationship management are driving the growth of the segment
• The managed services segment is expected to witness significant growth over the forecast period. Managed services assist in managing business platforms and infrastructure. These services can be beneficial to the customer support team in locating issues immediately, determining the source of infrastructure disruptions, and ultimately operating more dependably and effectively. Businesses are adopting managed services to effectively manage their IT infrastructure, save time, and save IT overhead costs, which is driving the growth of the segment
• The cloud deployment segment is expected to grow significantly over the forecast period. End users prefer cloud deployment of convergent billing systems as they can be deployed on the vendor's server, minimizing the deployment cost and time. Additionally, vendors can access the software through a web browser, making it accessible and efficient, which is expected to drive the segment's growth over the forecast period
• Asia Pacific is anticipated to emerge as the fastest-growing regional market. The growth can be attributed to a broader customer base and a substantial number of small & medium telecom providers in the region. Intensifying competition between key telecom providers is expected to drive the adoption of convergent billing systems to gain a competitive edge, driving the regional growth

With the increasing digitization, consumer preference has shifted towards more sophisticated and digitized service offerings. A unified bill gives customers a consolidated view of all the services they have opted for from the company. This unified view offers customers cross-service discounts so that customers who opt for multiple services can get a preferential pricing model. Moreover, the offered discounts can act as a marketing tool to attract more customers to opt for more services. Hence, a single product and service catalog can be provided using convergence billing, giving better marketing time and reducing implementation costs.

The 4G network technology providers use a traditional business model, requiring customers to opt for prepaid or postpaid services beforehand. Additionally, when customers move from one region to another, they are required to change their numbers and billing methods. However, convergent billing can eliminate the stress of changing numbers by unifying all the services on a single cloud platform by leveraging technological advances in the 5G network and Artificial Intelligence (AI) technology. Convergent billing is expected to reinvent billing using AI technologies to meet the needs of 5G in the near future.

With the emergence of smartphones, the telecom industry landscape has changed drastically. Smartphones these days are performing more functions than just transmitting voice and text messages. Therefore, unlimited data plans are more important than ever, pushing operators to offer various services to survive. However, convergent billing can take time. Implementing a convergent billing system can be a slow and tedious process. Transforming an entire billing system can take time. Still, it is seen as an inevitable part of the future of the telecom industry by telecom operators, which is expected to drive the growth of the market over the forecast period.

List of Key Players in the Convergent Billing Market

• Nokia Corporation
• Sterlite Technologies Limited
• Amdocs
• Optiva Inc.
• SAP SE
• Huawei Technologies Co., Ltd.
• CSG International
• Mind CTI
• Comarch SA
• IDI Billing