The importance of 5G policy control and charging function

As 5G evolves, the services it enables will be more granular and differentiated, supported by all the new data sources to which networks will have access. More data means operators will have a far more detailed understanding of customer behavior and traffic patterns than ever before. In effect, 5G policy and charging functions will also need to be more granular to ensure networks can introduce highly contextual offerings that they can fully monetize.

What 5G policy control and charging provide

Next-gen architecture

Its cloud-native and microservices-based open architecture enables support for complex B2B2X use cases, giving CSPs control over how different services interwork in the partner ecosystem. It can be deployed at the edge. Operators can swiftly and easily implement new use cases and streamline charging.

Monetizable partner models

Partners can be rapidly onboarded for a wide range of use cases, further simplified with custom predefined templates for various configurations. 5G policy control and charging (PCC) also enable operators to implement complex and granular business models in real-time with dynamically changing prices and partners.

Advance charging capabilities

PCC lets operators launch and monetize innovative offerings and charge accurately in real-time for different services based on QoS, access network, SLA, and more.

Open framework

Open APIs let operators easily monetize their network and infrastructure services, charging partners based on usage and different SLAs. They can also provide charging as a service, granting partners control over their own pricing.

How policy control and charging have evolved in 5G 

Next-gen use cases, by nature, are complex and granular, demanding a far more nuanced approach to policy as well as charging functions. Policy and charging play far more advanced and architecturally different roles in 5G.

In legacy architecture, the Policy and Charging Rules Function (PCRF) performed usage monitoring; the Online Charging System (OCS) + Offline Charging System (OFCS) separately performed charging functionalities and had multiple interfaces for different service operations. The next-gen, modular, and cloud-native microservice-based architecture (SBA) of 5G allows all network functions to communicate with each other using simplified APIs, enabling Policy Control Function (PCF) and Charging Function (CHF) to communicate using a single more open REST-based interface.

The 5G policy control function manages demands that are more focused on network capabilities. The PCF governs network resources in entirely new ways, across devices, radio, and the core network. The 5G charging function helps evolve business operations and operates across enterprise systems and networks to implement advanced and innovative service monetization methods. This powerful combo of PCF and CHF together helps operators support diverse high-value 5G use cases.

The role of PCF in the 5G core

5G PCF provides a convergent platform to manage 4G and 5G services. Operators can configure and manage converged policy use cases for data and voice services by using a common 4G/5G core to integrate with 4G and 5G networks. It is compliant with 4G, 5G-NSA (non-standalone), and 5G-SA (standalone) deployments. It enables operators to support private and public networks.

The 3GPP standards-defined PCF helps CSPs to:

• Implement end-to-end policy management, from devices to applications
• Define policies for different slices, supporting diverse 5G use cases such as enhanced mobile broadband (EMBB), ultra-reliable and low-latency communication (URLLC), massive IoT, and more
• Enable service exposure to external applications
• Gain advanced BI insights with real-time analytics, altering the business strategy and creating new offerings on the fly
• Leverage data to create custom differentiated services for retail and enterprise customers

How CHF redefines charging

As defined by 3GPP, the CHF provides convergent online and offline charging. It replaces the Diameter-based integrations used in previous-generation networks for real-time rating and charging with REST APIs. However, as 4G and 5G will coexist for the foreseeable future, it’s important for charging to continue to support Diameter as well as RESTful interfaces. By implementing this future-ready infrastructure, operators can improve the customer experience, continuing to provide their legacy offerings alongside new ones.

The CHF enables operators to charge for anything, moving beyond conventional units of measure. These can include Quality of Service (QoS), service availability, latency, SLAs, bandwidth slice-based, location-based, data volume, throughput, reliability, security, energy efficiency, API exposure, speed tiers, and much more.

The 3GPP standards-compliant CHF enables operators to:

• Scale to support charging of massive volumes
• Enable charging in partner hierarchies as well as charging on behalf of partners by providing charging as a service (such as for IoT services)
• Enable charging for non-telco services across sectors such as immersive shopping experiences using AR/VR, immersive media at sporting events, and more
• Implement different charging parameters for multiple parties involved in B2B2X business models
• Ensure accurate invoicing and settlements in real-time

Benefits of 5G PCF and CHF

Scale up or down based on traffic

Microservices-based architecture and Kubernetes enable the system to easily scale up or down to support dynamic traffic growth. This traffic-based auto-adjustment optimizes resource usage, provides consistent connectivity, and saves processing costs.

Ensure a vendor-agnostic environment

3GPP standards-compliant 5G NFs like PCF and CHF can work with network infrastructure and equipment from any vendor, enabling operators to choose the most cost-effective options.

Leverage existing BSS investments

5G PCF and CHF are part of the 5G core and can be implemented alongside an existing digital BSS. This gives operators the flexibility to gradually transition their networks without having to overhaul their BSS.

Deploy a unified platform

Operators can configure, launch, monitor, and control all charging policies and services from a converged system.

Reduce costs

The NFV- and cloud-compliant charging functions help maintain a low resource footprint and keep initial investment and operational costs low.

Drive revenue

Operators can open new revenue streams through the introduction of modern and advanced services. And by ensuring accurate charging, they can prevent revenue leaks, further improving revenue.

Support slice-based charging and monitoring 

Operators can perform charging and usage monitoring for network slices, granting certain users access to a dedicated set of resources for use cases like IoT, V2X, URLLC, and more.

Supports legacy and next-gen charging

As operators transition from 4G to 5G, CHF helps them meet both legacy and 5G charging needs. CHF makes operators future-ready while effectively supporting legacy services.

Conclusion

Seizing 5G opportunities means introducing advanced next-gen services. This demands granular and convergent charging functionalities that allow operators to rate, charge for, and bill events. And as services become more differentiated, charging must also take a more needs-based approach.

The PCF and CHF enable operators to charge based on the value they deliver to customers rather than charging a flat rate for service use. They need to fundamentally shift focus from providing connectivity to facilitating CX-driven services.

Partnerships play a huge role in 5G – another aspect where charging takes center stage. As they build an ecosystem of partners to enable a multitude of services, CSPs also need to have the charging infrastructure to ensure accuracy in billing and diversity in the business models they support. Say, for instance, a telco partners with a content platform. From the customer’s perspective, it makes sense to pay for a bundle of content services along with the 5G connectivity needed to access that service. It benefits the operators as well as the content platform by expanding their potential reach. Defining the charging policies and seamlessly charging for these services is possible with a next-gen PCF and CHF.

Operators with 5G on their roadmap even a few years down the line should begin preparing their networks today to ensure that they can fully monetize 5G once they implement it. The first step in this direction is BSS transformation.

Introduction

Post-pandemic market dynamics have been challenging for global CSPs, who have emerged as essential service providers dealing with surging demand from millions working or studying at home. At the same time, there have been significant challenges running their businesses with in-person restrictions and high staff turnover. For many operators, the past year was time to accelerate their digitization roadmap by several years, introducing more digital services and implementing infrastructure to monetize these offerings. This cultural shift driving demand for data services and digital journeys will continue into next year and beyond. In an environment where more retail and enterprise consumers are demanding digital services and digital engagement, what trends can telecom operators expect in 2022?

2022’s top 5 telecom trends

Digitization of business models

The pandemic has completely changed how customers interact with their service providers, transforming the way business is conducted. More interactions are online, and subscribers are more inclined to choose a service provider who offers digital onboarding and self-care services. While many have already modernized their networks, in 2022, CSPs will continue to transform operations through digitalization of infrastructure and services.

More operators will also introduce the zero-touch network, which enables 100% digital customer journeys. This means replacing all physical touchpoints such as stores or support agents with digital and automated ones. Operators will be able to digitize customer experience (CX) with fully digital sales and support, while keeping their initial investment and overheads low. They will be able to offer customers full control over their subscriptions, implementing end-to-end automation to enable everything from digital self-onboarding and eKYC to accessing self-help using chatbots.

To support more advanced and digital services, operators will also need to implement more flexible and agile backend operations and systems. This includes technologies such as hyperscale infrastructure, automated workflows, artificial intelligence (AI), digital apps, and more. Many operators may introduce a new lean, agile, cloud-native digital brand rather than attempting to transform their existing complex network infrastructure.

Focus moving from IoT to IoE

The enterprise segment will drive growth over the new few years, and connectivity is just one part of what CSPs have to offer. Business models will evolve to provide end-to-end service offerings, including many new innovative use cases around IoT. In fact, there will be a shift from simply facilitating use cases involving the Internet of Things to applications that leverage the Internet of Everything. What exactly is the difference between IoT and IoE? The simple explanation is that IoT connects machines, while IoE extends beyond connecting mobile devices and facilitates intelligent connections between all types of data, processes, people, appliances, and things. These connections will be facilitated over public or private networks over standard protocols, and each one can be accessed and measured in real-time. With billions of potential connections supporting a more cognitive and intelligent environment, IoE holds the potential to transform our lives.

This report forecasts that the global IoE market will reach $3,352 billion by 2022. While actual implementation of use cases may still be a while away, there will be significant investments in research and studies to determine the most relevant applications. What use cases networks will facilitate relies heavily on industry-based needs and how they evolve their business models. Industries such as manufacturing and mining are likely to be early adapters, and are already implementing process automation.

Acceleration of cloud deployments

Gartner’s Top Strategic Technology Trends for 2022 report predicts that by 2025, cloud-native platforms will serve as the foundation for over 95% of new digital initiatives, which in 2021 are less than 40%.

Cloud deployment provides a host of benefits to CSPs. For one, it helps keep implementation and operational costs low. It enables telcos to scale up and down to meet traffic demands, optimizing their network resources. It also supports operators to take the ‘pay as you grow’ business approach (another trend that will become increasingly popular in 2022). This model means operators can achieve faster time to market and minimize costs as they only pay for the services that they actually use – both benefits that will help them remain relevant in the increasingly competitive market dynamics we’re likely to witness.

Aside from facilitating CSPs to automate processes and operations, deploying in the cloud will also serve as the foundation for generating new revenue streams and market growth opportunities by implementing tech innovations like data analytics and 5G.

Enterprise Private 5G

The adoption of private 5G networks will start gaining more traction around the world. As these dedicated networks provide security, speed, and bandwidth advantages over WiFi and LTE, they will be game-changers for enterprises.

In 2022, we are likely to see adoption from enterprises such as manufacturers who require 5G capabilities to implement transformative applications that drive smart factories, digital transformation, and IoT. Private 5G will also help forward the vision of smart manufacturing and smart factories. In addition to supporting use cases such as IoT, automation, and enabling ultrafast and reliable connectivity, it will help build factories without wires and cables. This will help manufacturing units drive revenue by saving time and effort while maintaining a clean clutter-free factory floor for robots and automated machines to perform operations.

Cybersecurity

As advanced services such as IoT become prevalent, operators will have access to more customer data than ever and will be expected to provide more personalized experiences by leveraging this data. CSPs need to protect this data to maintain customer trust. And with the huge increase in cyber crime, there will be more region-specific standards and compliances from a regulatory standpoint.

Security in 2022 will go beyond the traditional approaches, with assets and users becoming more mobile. It means implementing a cybersecurity mesh architecture (CSMA), which helps provide an integrated security structure to keep all assets safe, regardless of their location.

From the security standpoint, another added layer that operators can provide is the eSIM. By transmitting all SIM data digitally, operators can eliminate the need for a physical SIM card and delivery address, securing customer data through online verification.

Conclusion

In 2022, 5G and digitalization of networks and service offerings will continue to drive revenue and subscriber growth. A host of new devices and technologies are making 5G and the promise of its advanced use cases a reality. Operators will need to support this growth by implementing modern next-gen applications and infrastructure, such as leveraging the public cloud, all while keeping security in mind. Alepo provides a host of digital-first offerings that enable operators to future-proof their networks. Want to know more about our 5G-ready cloud-based solutions?

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