Huawei CBS Study Module

Comprehensive study guide for Huawei Convergent Billing System (CBS). Master CBS architecture, product & tariff management, rating & charging mechanisms, billing processes, and security features.

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4
Main Sections
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Topics Covered
100+
Concepts
4-6
Hours to Complete

System Description

Introduction to CBS

Huawei Convergent Billing System (CBS) is a comprehensive, carrier-grade billing platform designed to handle the complex charging and billing requirements of modern telecommunications operators. CBS provides a unified solution for managing prepaid and postpaid subscribers, supporting multiple services and payment methods on a single platform.

What is Convergent Billing?

Convergent Billing is the integration of multiple billing systems into a single, unified platform that can handle all subscriber types (prepaid, postpaid, hybrid), all services (voice, data, content, VAS), and all charging models (online, offline, real-time, batch) through one system.

The CBS is aimed at helping telecom network carriers to provide a more flexible online charging platform, service management platform and customer care platform of larger scale for all subscribers.

Product and Tariffs Management

Product and Tariffs Management provides processes for defining, testing, and releasing products and offers, and also provides product tariff configurations.

Product management is performed in the Offer-Product-Service model. This model provides a structured approach to packaging and delivering services to subscribers.

Offer-Product-Service Model Architecture
CBS Offer-Product-Service Model OFFER LAYER Primary Offer • Subscribable commodity from main product • Required during registration • Enables core services for subscriber Optional Offer • From appendant product packing • Supplements primary offer • Enables additional services appends PRODUCT LAYER Main Product Packed in primary offer One per subscriber Basic network services Basic tariffs Appendant Product Appends to main product Value-added services Preferential tariffs Global Product No subscription required Auto-applies to all eligible Recharge rewards First activation rewards Group Product Shared by group members Enhanced preferences Family/Corporate plans SERVICE LAYER Voice Service Calls, VoLTE SMS Service Text Messages GPRS/Data Internet, Apps MMS Service Multimedia Content VAS, Downloads Legend Core/Required Optional/Secondary Auto/Global Group/Shared Contains/Includes

Offer Types

Primary Offer Required

A primary offer is a subscribable commodity obtained after a main product is packed. A subscriber must subscribe to a primary offer during registration. After subscription, CBS enables services included in the primary offer for the subscriber.

Optional Offer Supplementary

An optional offer is a subscribable commodity obtained after an appendant product is packed. An optional offer is appended to and supplements a primary offer. After subscribing to a primary offer, a subscriber can subscribe to the appended optional offers to enable one or more services and to enjoy related preferences.

Product Types

Main Product

A main product is packed in a primary offer. During registration, a subscriber must subscribe to a primary offer and specify a main product to be included.

  • One per subscriber (required)
  • Contains basic network services
  • Includes basic tariffs

Appendant Product

An appendant product appends to a main product, providing value-added services and preferential tariffs.

  • Supplements main product
  • Value-added services
  • Special discounts

Global Product

A global product is an appendant product that applies to all subscribers meeting required criteria without subscription.

  • No subscription required
  • Recharge rewards
  • First activation rewards

Group Product

A group product is owned by subscribers in the same group. A group member can enjoy more preferences than an individual subscriber can.

  • Shared among group members
  • Family/Corporate plans
  • Enhanced preferences

Service Definition

A service is provided by a carrier, including the voice service, SMS, and GPRS. In CBS, services do not include buying a card, buying a mobile phone, or subscribing to a bill.

CBS Orientation

The CBS is aimed at helping telecom network carriers to provide a more flexible online charging platform, service management platform and customer care platform of larger scale for all subscribers.

Traditional Systems vs CBS
Disadvantages of Traditional Systems

The traditional prepaid charging system and postpaid charging system are two independent operation systems:

  • Prepaid System: Developed using Intelligent Network (IN) technology by network device providers
  • Postpaid System: Provided by charging device providers through Operation and Support System (OSS)

Key Problems with Traditional Systems

  • Prepaid limitations: Not flexible in tariff configurations, cannot support data services, lacks subscriber care capabilities
  • Postpaid limitations: No real-time credit control, slow transaction queries, long bill generation time, risks of bad debts and revenue loss
  • Coexistence issues: No service packaging, no cross preferences, inconsistent configurations, slow product launches
  • High costs: Managing multiple systems increases operation and maintenance costs

CBS Key Features

Unified Product Management

Configure voice/data packages for all subscriber types using same interface

Unified Customer Data

Single data model for prepaid, postpaid, and hybrid subscribers

Unified Rating & Billing

Cross-service charging and preferences for all service types

Unified Bills

All consumption in one bill categorized by service type

Reliable

Precise charging with revenue audit and disaster recovery

Transparent

Clear charging for users, transparent revenue for carriers

Efficient

Real-time credit control, hot bill run, quick product launches

Intelligent

Analytics for consumption, resources, and ARPU optimization

Services Supported by CBS

The CBS provides a uniform charging platform and flexible charging policies for multiple telecommunication services.

CBS Supported Services Architecture
CBS Charging Platform Voice Call • Local call fee • Toll call fee • Roaming call fee • External fee SMS Service • Text messages with limited length • Charges for send/receive • Mobile subscriber communication MMS Service • Video clips, pictures, sounds • Value-added service • Rich media exchange Data Service GPRS: • WAP/Web access • Duration/Traffic based Content: • Downloads, streaming Fax, Data & Video Call • Fax call service • Circuit switched data • Video call (3G/4G) Supported Networks GSM/WCDMA CDMA/CDMA2000 xDSL WiFi WiMAX LTE/5G
Voice Call
SMS
MMS
Data/GPRS
Video Call

Advantages of the CBS

In the severe competition of value-added services among telecom carriers, the CBS integrated charging system is not only the strength of carriers to win the competition but also the key for stable running of all telecom services.

Flexible Charging Modes

Multi-layer charging (bearer, service, content), multi-service charging, different payment modes, event-based and session-based online charging, CDR-based offline charging.

Integrated Charging Capability

Supports GSM/WCDMA, CDMA/CDMA2000, xDSL, WiFi, WiMAX networks. Handles prepaid, postpaid, and hybrid payment types.

Flexible Expansion (MVNO)

Supports MVNO solution with data isolation and permission control between tenants. Physical or logical data isolation for multi-tenant environments.

Open System

Open Diameter interface, WebService interface, DCC/CDR interfaces. Follows eTOM and SID models for CRM integration.

Quick Response to Market

Dynamic rule engine for flexible charging configuration. GUI-based product configuration and rapid launch capabilities.

Uniform Network Management

Monitors and manages system running status for both prepaid and postpaid services from a single platform.

Rating and Charging

Rating and Charging is the core function of CBS that determines how services are measured, rated, and charged to subscribers. It supports multiple charging models including usage-based, event-based, and time-based charging.

Rating Architecture

CBS Rating Engine Architecture Usage Events CDR/UDR Input Network Triggers RATING ENGINE • Service Identification • Tariff Selection • Price Calculation Usage-Based Volume/Duration Event-Based Per Transaction Time-Based Periodic Fees Content-Based Digital Services Tariff Tables • Rate Plans • Zone Definitions • Time Bands Discount Engine Promotions & Offers Loyalty Points Account Balance Management Real-time Balance Update | Multi-wallet Support

Usage-Based Charging

  • Volume charging (KB, MB, GB)
  • Duration charging (seconds, minutes)
  • Pulse-based rating
  • Tiered usage rates

Event-Based Charging

  • Per-transaction fees
  • SMS/MMS unit charges
  • Content download fees
  • Service activation charges

Time-Based Charging

  • Monthly subscriptions
  • Daily/Weekly passes
  • Periodic rental fees
  • Anniversary billing

Discount & Promotions

  • Percentage discounts
  • Flat amount deductions
  • Bundled pricing
  • Loyalty rewards

Roaming Rating

CBS supports comprehensive roaming rating including:

  • VPMN-based rating: Charges based on visited network
  • Zone-based rating: Geographic zone pricing
  • TAP file processing: Transfer Account Procedure for inter-operator settlement
  • Roaming agreements: Partner-specific rate configurations

Hybrid Charging

Hybrid Charging combines prepaid and postpaid characteristics, allowing operators to offer flexible payment options. Subscribers can enjoy prepaid control with postpaid convenience.

Hybrid Charging Model

Hybrid Charging Architecture PREPAID ✓ Real-time charging ✓ Balance control ✓ Immediate deduction ✓ Top-up flexibility POSTPAID ✓ Credit facility ✓ Bill cycle billing ✓ Usage accumulation ✓ Grace period HYBRID Best of Both Worlds Prepaid Control + Postpaid Convenience Spend Control Credit limits with real-time monitoring Threshold alerts Flexible Payment Pay before or after Auto top-up options Multiple wallets Service Continuity Emergency credit Overdraft facility Grace periods

Multi-Wallet Support

Separate wallets for voice, data, SMS with independent balance management and cross-wallet fallback.

Spend Control

Set credit limits, usage thresholds, and receive real-time alerts when approaching limits.

Seamless Transition

Automatic fallback from prepaid to credit and vice versa based on configured rules.

Billing

The Billing module handles bill generation, presentment, and management for postpaid and hybrid subscribers. It supports flexible bill cycles, multiple formats, and comprehensive invoice management.

Billing Cycle Process

Bill Generation Lifecycle BILLING CYCLE 1. Usage Collection 2. Rating & Charging 3. Bill Generation 4. Bill Presentment 5. Payment 6. Reconciliation Bill Formats 📄 PDF Invoice 📧 Email Bill 📱 SMS Summary 🌐 E-Bill Portal 📊 CDR Detail

Flexible Bill Cycles

  • Monthly billing (1st-31st)
  • Anniversary billing
  • Custom bill dates
  • Mid-cycle billing

Bill Components

  • Usage charges breakdown
  • Subscription fees
  • Taxes and surcharges
  • Adjustments & credits

Bill Processing

  • Batch bill runs
  • Real-time mini-bills
  • Bill corrections
  • Re-billing support

Accounts Receivable

Accounts Receivable (A/R) manages payment collection, aging analysis, dunning processes, and bad debt handling. It ensures revenue assurance and maintains healthy cash flow for operators.

A/R Process Flow

Accounts Receivable Management Invoice Generated Bill Amount Due Payment Due Grace Period Dunning Start Reminder Sent Collection Action Required Current 0-30 Days Healthy Overdue 31-60 Days Warning Delinquent 61-90 Days Escalation Bad Debt 90+ Days Write-off Risk

Dunning Management

  • Multi-level reminders
  • Configurable escalation
  • SMS/Email/IVR notifications
  • Grace period management

Aging Analysis

  • Bucket-wise aging
  • DSO calculation
  • Collection efficiency
  • Bad debt provisioning

Payment Processing

  • Multiple payment channels
  • Auto-reconciliation
  • Partial payments
  • Payment plans

Service Charging

CBS provides comprehensive charging capabilities for all telecommunication services including Voice, SMS, MMS, GPRS/Data, Content Services, and Fax/Video calls. Each service type has specialized rating parameters and charging models.

Multi-Service Charging Architecture

Service-Specific Charging CBS Charging Core 📞 VOICE Duration-based 💬 SMS Event-based 🖼️ MMS Content + Volume 📶 GPRS/DATA Volume-based 🎵 CONTENT Per-download 📠 FAX Duration + Pages 📹 VIDEO CALL Duration + Bandwidth 📱 VoLTE HD Voice + Data

Voice Charging

  • Call duration rating (seconds)
  • Time-of-day tariffs
  • Destination-based pricing
  • Free minutes handling
  • Call forwarding charges

SMS Charging

  • Per-message charging
  • Long SMS segmentation
  • National/International rates
  • Premium SMS handling
  • Bundle deduction

GPRS/Data Charging

  • Volume-based (KB/MB/GB)
  • Time-based data sessions
  • APN-based differentiation
  • QoS-based pricing
  • Fair usage policies

MMS Charging

  • Message size-based
  • Content type pricing
  • Recipient count charges
  • Storage fees
  • Notification charges

Content Charging

  • Per-download fees
  • Subscription models
  • Streaming charges
  • Revenue sharing (CP)
  • WAP billing integration

Video/Fax Charging

  • Video call duration
  • Bandwidth tier pricing
  • Fax page counting
  • Quality of service rates
  • Conference call billing

Financial & Tax Management

CBS integrates comprehensive financial management and tax handling capabilities, ensuring compliance with regulatory requirements and accurate revenue recognition across multiple jurisdictions.

Financial Management Framework

Financial & Tax Framework Revenue Recognition • Deferred revenue handling • Unbilled revenue tracking • Revenue allocation • Multi-element arrangements Tax Engine • VAT/GST calculation • Withholding tax • Service tax handling • Multi-jurisdiction support GL Integration • Account mapping • Journal entries • Period close processing • ERP integration Direct Taxes • Corporate Tax • Withholding Tax • Excise Duty • Regulatory Fees Indirect Taxes • VAT/GST • Service Tax • Municipal Tax • Cess/Surcharge Compliance • Tax Returns • Audit Trails • Regulatory Reports • Invoice Requirements

Tax Calculation

  • Real-time tax computation
  • Multi-rate support
  • Tax-inclusive/exclusive pricing
  • Compound tax handling

Multi-Jurisdiction

  • Country-specific rules
  • State/Province taxes
  • Cross-border taxation
  • Tax treaty handling

Invoice Compliance

  • Legal invoice formats
  • Electronic invoicing
  • Tax registration display
  • Credit note handling

Value Added Services

CBS supports a wide range of Value Added Services (VAS) including Friends & Family, Home Zone, Closed User Groups (CUG), and Community services. These features enhance subscriber experience and increase ARPU.

VAS Ecosystem

Value Added Services VAS Platform Friends & Family Preferred Numbers Home Zone Location Discounts Closed User Group Corporate Plans Community Social Circles 5-10 Numbers Geo-fenced

Friends & Family (FnF)

  • Subscriber-defined preferred numbers
  • Special discounts for FnF calls/SMS
  • Configurable number limits (5-10)
  • Self-care FnF management
  • Multi-tier FnF groups

Home Zone

  • Location-based discounts
  • Cell ID / GPS-based zones
  • Reduced rates at home/office
  • Zone entry/exit detection
  • Multiple zone definitions

Closed User Group (CUG)

  • Corporate group calling
  • Free/discounted intra-CUG calls
  • Hierarchical CUG structure
  • Cross-CUG permissions
  • Enterprise billing support

Community Services

  • Social circle discounts
  • Dynamic community formation
  • Usage-based benefits
  • Referral rewards
  • Group data sharing

Business Support

CBS provides comprehensive business support features including MVNO management, Mobile Number Portability (MNP), bypass/fraud detection, and debt collection. These capabilities enable operators to expand their business models and protect revenue.

MVNO Support Architecture

MVNO Business Model Support Host MNO Network Infrastructure CBS Platform Shared CBS Platform - Multi-tenant MVNO A Retail Brand Own Pricing MVNO B Enterprise Focus B2B Solutions MVNO C Youth Segment Data Focused MVNO D IoT/M2M Connected Devices Data Isolation ✓ Physical separation ✓ Logical isolation ✓ Independent billing

MVNO Support

  • Multi-tenant architecture
  • Physical/Logical data isolation
  • White-label branding
  • Independent product catalogs
  • Wholesale billing
  • Revenue sharing models

Number Portability (MNP)

  • Port-in/Port-out handling
  • NPL database integration
  • Routing updates
  • Balance transfer support
  • Service continuity
  • Regulatory compliance

Fraud & Bypass Detection

  • SIM box detection
  • Call pattern analysis
  • Revenue leakage alerts
  • Unusual usage patterns
  • Real-time monitoring
  • Automated blocking

Debt Collection

  • Collection workflows
  • Agency management
  • Legal case tracking
  • Settlement processing
  • Write-off handling
  • Recovery reporting

Mobile Number Portability Process

1
Port Request

Subscriber initiates port request with recipient operator

2
Validation

UPC generation and eligibility verification

3
Network Update

NPL database and routing table updates

4
CBS Update

Subscriber migration and balance handling

Security

CBS implements comprehensive security measures to protect subscriber data, ensure transaction integrity, and maintain regulatory compliance. Security is built into every layer of the system.

Security Architecture

CBS Security Framework 🔒 Network Security Layer - Firewall, IDS/IPS, VPN 🔐 Application Security - Authentication, Authorization 🛡️ Data Security - Encryption, Masking, Tokenization 📋 Audit & Compliance - Logging, GDPR, PCI-DSS Core Data Multi-Factor Auth Role-Based Access

Access Control

  • Role-based access (RBAC)
  • Multi-factor authentication
  • Session management
  • IP whitelisting
  • Privileged access management

Data Protection

  • AES-256 encryption at rest
  • TLS 1.3 in transit
  • Data masking for PII
  • Tokenization
  • Key management (HSM)

Compliance

  • GDPR compliance
  • PCI-DSS for payments
  • SOX controls
  • Local data protection laws
  • Right to be forgotten

Audit & Monitoring

  • Complete audit trails
  • Real-time monitoring
  • Anomaly detection
  • Security alerts
  • Forensic capabilities

Security Best Practices

  • Least Privilege: Users get minimum access required for their role
  • Defense in Depth: Multiple security layers protect critical systems
  • Regular Audits: Periodic security assessments and penetration testing
  • Incident Response: Defined procedures for security breach handling
  • Continuous Monitoring: 24/7 SOC monitoring for threat detection
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