SAP Convergent Mediation Transforms Data into Revenue Across Telecom and Utilities
Ever wondered how enormous volumes of user data, such as phone logs, internet usage, or streaming time, are converted into precise invoices? Before sending it on for charging and billing, Convergent Mediation serves as an intelligent intermediate layer that gathers, verifies, enriches, and formats usage data from many platforms. Consider it the “data translator” that makes sure your services are correctly recorded and paid as benefits across mobile, IoT, and OTT.
Telecom:
SAP Convergent Mediation plays a pivotal role in the telecommunications sector by serving as the central data processing layer between network infrastructure and business support systems (BSS). It enables telecom operators to collect, process, enrich, and distribute usage data in real-time or batch mode for billing, analytics, partner settlement, and customer care.
Utilities:
SAP Convergent Mediation acts as a powerful intermediary layer in the utilities industry, enabling the efficient and accurate collection, transformation, validation, and distribution of metering and operational data. It connects smart meters, sensors, and grid systems with downstream billing, analytics, and customer care platforms. This capability is critical in an era of smart grids, dynamic pricing, and regulatory compliance.
Common Use Cases for SAP CM:
OTT Platform:
An individual may use an over-the-top (OTT) platform, for instance, to unwind, keep up with popular shows, or obtain unique content that isn’t available on traditional TV. In this case, OTTs are created as usage-based subscriptions. used strategies on a daily, monthly, or year basis to maintain client engagement.
Telecommunications:
Fixed subscriptions, which provided users with a predetermined amount of speak time, data, or text messages in exchange for a monthly cost, were frequently the foundation of traditional telecom billing arrangements. However, a move toward usage-based charging has been fueled by the growing demand for data services, the spread of connected devices, and the flexibility demanded by contemporary consumers. Here are some ways that usage-based billing is changing the telecom market.
Metromile
Metromile is car insurance that has a premium based solely on the amount the user drives, essentially allowing them to pay for insurance only when they drive their car. If a potential customer is debating whether pay-per-mile is a good car insurance option, Metromile has that covered and can help a customer decide before committing to a policy. Metromile created an app called RideAlong which calculates how many miles a person drives for 17 days. At the end of that time, the app will calculate what the customer’s rates.
E-Commerce
Cloud web hosting solutions from E-Commerce Services give government agencies, non-profits, and companies an affordable option to distribute their websites and online apps. AWS provides a variety of website hosting choices, whether you’re searching for an e-commerce, marketing, or rich-media website. Use a model based on consumption.
Key capabilities of SAP Convergent Mediation in Telecom and Utilities:
In Telecommunications:
- Multi-Network Usage Data Collection
- Collects data from diverse network elements (2G/3G/4G/5G, VoIP, IPTV, DSL).
- Supports various usage types: voice, data, SMS, content services.
- Data Normalization and Enrichment
- Standardizes raw usage data from different vendors/formats.
- Enriches data with customer/account info, service type, time zone, etc.
- Real-Time Mediation
- Enables low-latency processing for prepaid charging and usage throttling.
- Supports online charging and immediate balance deduction.
- Batch Mediation
- High-volume processing of call detail records (CDRs), internet usage logs, etc.
- Optimized for postpaid and wholesale billing cycles.
- Aggregation and Filtering
- Groups granular usage events by service, time, or customer.
- Filters out duplicate or non-billable events before billing.
- Roaming and Partner Settlement Support
- Processes inbound/outbound roaming records.
- Enables revenue sharing and reconciliation with interconnect partners.
- Scalability and Performance
- Handles millions of records per hour with high throughput and availability.
In Utilities:
- Smart Meter Data Collection
- Integrates with AMI and AMR systems to gather electricity, gas, and water readings.
- Supports interval data (e.g., 15-min, hourly) for residential and commercial meters.
- Data Validation and Cleansing
- Identifies and flags errors, missing values, or anomalous patterns.
- Ensures data integrity before it enters billing systems.
- Consumption Aggregation
- Summarizes interval data into daily, monthly, or billing-period totals.
- Supports load profiling and consumption forecasting.
- Time-of-Use and Dynamic Pricing Enablement
- Associates’ readings with time-based pricing models (e.g., peak/off-peak, demand response).
- Supports flexible tariffs and customer-specific pricing.
- Event Detection and Routing
- Identifies meter tampering, outages, voltage anomalies.
- Routes alerts operational or customer service systems for action.
- Integration with SAP IS-U and SAP BRIM
- Seamlessly passes enriched, validated data for accurate billing and customer insights.
- Bridges operational metering data with commercial revenue management.
- Regulatory and Audit Compliance
- Maintains full traceability of usage data for audits and regulatory reporting.
- Supports data retention policies and GDPR compliance.
Where Convergent Mediation Fits in Telecom and Utilities in SAP BRIM:
SAP Convergent Mediation is positioned at the front end of the SAP BRIM (Billing and Revenue Innovation Management) process. It acts as the bridge between the operational/technical layer (network or meter systems) and the commercial layer (billing, charging, invoicing, and finance).
In Telecom Data Flow:
- → Network Elements
(e.g., mobile switches, VoLTE, SMSC, data gateways) - → SAP Convergent Mediation
Collects, normalizes, filters, enriches, and validates usage records (e.g., CDRs, EDRs). - → SAP Convergent Charging (SAP CC)
Real-time or batch charging based on usage and pricing logic. - → SAP Convergent Invoicing (SAP CI)
Consolidates charges into invoices. - → SAP Contract Accounting (FI-CA)
Manages payments, collections, dunning, and financial posting.
Role in Telecom:
- Enables monetization of mobile voice/data, content services, and roaming.
- Supports real-time charging for prepaid services.
- Provides validated data for partner settlement and regulatory compliance.
In Utilities Data Flow:
- → Smart Meters / AMI Systems
(electricity, gas, water usage data) - → SAP Convergent Mediation
Captures, cleanses, enriches, and aggregates meter readings. - → SAP IS-U (Industry Solution for Utilities) OR
→ SAP Convergent Charging (for advanced pricing/tariff logic) - → SAP Convergent Invoicing
Aggregates usage charges with other services (if needed). - → SAP Contract Accounting (FI-CA)
Manages billing account balances and payments.
Role in Utilities:
- Enables billing based on time-of-use, tiered, or dynamic pricing models.
- Validates and filters smart meter data to ensure billing accuracy.
- Supports new business models (e.g., EV charging, solar net metering, smart appliances).
Why SAP CM Matters in SAP BRIM:
SAP Convergent Mediation plays a critical role in enabling accurate, efficient, and scalable revenue management by ensuring that all usage and consumption data—which is the foundation of modern billing—is reliable, enriched, and monetizable.
In Telecommunications Key Reasons It Matters:
- Foundation for Usage-Based Revenue
- Telecom services like voice, SMS, data, and streaming are usage driven.
- Mediation ensures these usage records are complete and accurate before billing.
- Supports Real-Time Business Models
- Prepaid services and dynamic content pricing require instant processing and charging.
- Convergent Mediation enables real-time event collection and routing to charge systems.
- Essential for Partner Settlements
- In roaming, interconnect, and content sharing models, partner usage must be tracked and billed correctly.
- Mediation enables detailed partner data reconciliation and settlement accuracy.
- Scalability for 5G and IoT
- Modern networks generate millions of micro-usage events.
- Convergent Mediation handles high-volume, low-latency processing needed for new digital services.
- Enables Customer Experience Enhancements
- By providing accurate and timely usage data, it supports transparent billing, notifications, and usage control.
In Utilities Key Reasons It Matters:
- Smart Metering Requires Intelligent Data Processing
- Utilities now collect data in short intervals (e.g., every 15 minutes).
- Mediation processes and validates this data before it goes to billing systems.
- Enables Time-of-Use and Dynamic Pricing
- Consumption needs to be associated with time slots or rate categories.
- Convergent Mediation enriches data with time/context to enable flexible pricing models.
- Improves Billing Accuracy and Customer Trust
- Cleansed and validated consumption data means fewer billing disputes.
- Helps customers better understand and manage their usage.
- Critical for New Business Models
- Supports energy-as-a-service, electric vehicle (EV) charging, solar/net metering, and more.
- Bridges the operational data from smart grids with monetization engines.
- Enhances Grid and Service Reliability
- Detects anomalies like outages or tampering and routes event data to the right systems.
Wrapping Up
SAP Convergent Mediation plays a pivotal role in ensuring accurate, scalable, and real-time revenue generation within the telecommunications and utilities sectors. As the foundational processing layer in the SAP BRIM (Billing and Revenue Innovation Management) architecture, it guarantees that raw usage and consumption data—whether from telecom networks or utility meters—is clean, validated, and ready for monetization.
In telecom, it streamlines real-time charging, partner settlements, and supports complex digital services across emerging 5G and IoT landscapes. In the utilities industry, SAP Convergent Mediation is essential for smart metering, time-of-use billing, dynamic pricing, and energy-as-a-service models.
By optimizing data integrity, billing accuracy, and operational efficiency, SAP Convergent Mediation empowers service providers to maximize revenue, reduce operational risks, and boost customer satisfaction. Its role as a bridge between technical systems and commercial platforms makes it essential to driving digital transformation in usage-based business models.
If you’re looking to integrate SAP Convergent Mediation into your operations and unlock the full potential of your data, Mobolutions is here to help. With our expertise in SAP solutions, we provide tailored services that ensure seamless implementation, support, and optimization of your SAP environment.
Ready to take your business to the next level? Contact us today at [email protected] to learn how we can drive your success.
