The Revenue Potential of Billing Increments

A Microsoft Excel simulation model to reveal the revenue potential of billing increments in mobile or fixed-line tariffs

Be honest: do you know which incremental billing model is included in your mobile phone or fixed line tariff? No worries, I suppose most people do not know. However, incremental billing models represent a considerable part of mobile or fixed line operators’ revenues.

But what is incremental billing? It means that carriers are pricing calls in slices longer than a second. Full minute billing means – for instance – that you are paying two full minutes, although your call was only 61 seconds long.

How big is this effect of additional revenues? How much revenues do carriers make by using incremental billing?

Today’s post presents a simulation model to reveal and evaluate the revenue potential of different billing increment models. As always including the Microsoft Excel workbook for free download.