Billing System Allocating Overage Costs by Subscriber Usage
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Solution Overview
Problem
Current billing systems for shared wireless communication services lack clarity in cost allocation among subscribers, leading to unfair charges due to the timing of usage, as subscribers are not easily able to divide costs equitably.
Innovation Solution
A method and system that allocates a share of the base cost and overage cost to each subscriber based on their proportional use of communication services, generating invoices that indicate a suggested cost for each subscriber, ensuring an equitable distribution of fees.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a single common billing account is used for multiple subscribers, then the ease of account creation and joining is improved, but the clarity of cost allocation among subscribers deteriorates
Solution Approach 1:
The patent segments the total billing into distinct components: base service costs and overage costs. It further segments overage costs by identifying which subscriber caused the overage condition. This segmentation allows the system to maintain a simple shared account structure while providing detailed cost allocation information to help subscribers understand their individual financial responsibilities.
2Measurement precision
If overage charges are applied based on timing of usage, then the accuracy of billing for actual usage is improved, but the fairness of cost distribution among subscribers deteriorates
Solution Approach 1:
The patent implements feedback by providing subscribers with detailed billing information that shows not only the total charge but also which specific usage events caused overage conditions and which subscribers are responsible for those charges. This feedback mechanism allows subscribers to understand the relationship between their usage patterns and their financial responsibility, enabling more fair cost distribution while maintaining accurate billing.
3Device complexity
If a single invoice is generated for all subscribers, then the simplicity of the billing process is improved, but the ease of dividing costs among subscribers deteriorates
Solution Approach 1:
The patent segments the billing information within a single invoice structure, presenting the total account charge alongside detailed breakdowns by subscriber and by charge type. This allows the billing process to remain simple from the provider's perspective while providing subscribers with the information needed to easily divide costs among themselves.
Solution Approach 2:
The patent uses the detailed billing information as an intermediary that bridges the gap between the simple shared account structure and the need for equitable cost division. The billing system provides the data necessary for subscribers to calculate their individual shares without requiring complex automated distribution mechanisms.
Data Source
AI summary
In a shared communication service plan in which multiple subscribers operate under a common billing account, a method and system is provided for more equitably allocating service costs among the subscribers in the group, by allocating overage costs based on the extent to which each subscriber used base services available to the group. For instance, if the group plan includes a designated number of base minutes of service per month and defines a per-minute overage cost for minutes used beyond the base number, the method and system may allocate to a given subscriber a portion of the group's overage cost, with the portion being determined based on the portion of the group's base minutes used by the subscriber. Advantageously, an invoice may then be generated setting forth the equitable allocation among the subscribers in the group, thus allowing the group to more readily determine how much each subscriber should pay.