Prepaid Multi-Line Plan Infrastructure Consolidation
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Solution Overview
Problem
Prepaid mobile phone accounts with different cycle dates and payment structures pose challenges for telecommunications service providers in managing billing, reducing churn, and optimizing account profitability, as they require individual processing and reimbursement, leading to increased costs and complexity.
Innovation Solution
A system and method for consolidating multiple prepaid wireless accounts into a single multi-line account, where credits for unused time are calculated and applied to a master payment, and interim charges are determined to align cycle dates and payment schedules, allowing for unified billing and reduced administrative burdens.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If multiple prepaid accounts with different cycle dates are managed individually, then each account can be processed independently, but billing complexity and administrative costs increase
Solution Approach 1:
The patent consolidates multiple prepaid accounts with different cycle dates into a single master prepaid account with a unified cycle date. This merging approach combines previously separate billing processes into one centralized system, reducing administrative complexity while maintaining the ability to track individual account balances and usage. The consolidation eliminates the need to manage multiple independent billing cycles, thereby simplifying the overall billing infrastructure.
2Productivity
If payments are due on different cycle dates for different prepaid accounts, then individual billing can be processed, but cash flow management and reimbursement complexity increase
Solution Approach 1:
The patent establishes a unified periodic billing cycle for the master prepaid account, where all consolidated accounts are billed on the same cycle date. This standardized periodic action replaces the previous irregular schedule of individual account billing, enabling more efficient cash flow management and reducing the time required for reimbursement processing. The consistent periodic structure allows for automated batch processing of payments across all accounts.
3Device complexity
If prepaid accounts are consolidated into a master account, then billing is simplified and administrative burdens are reduced, but calculating prorated credits for different usage periods becomes complex
Solution Approach 1:
The patent calculates and reserves prorated credits for each consolidated account before the master account billing cycle begins. By performing these calculations in advance, the system ensures accurate credit allocation for accounts with different usage periods while maintaining a simplified billing process. The preliminary calculation of credits based on actual usage and time periods allows for precise financial management without complicating the ongoing billing operations.
4Reliability
If individual prepaid accounts are maintained separately, then account-specific billing can be processed, but account turnover increases and profitability decreases
Solution Approach 1:
The patent merges multiple individual prepaid accounts into a single master account structure, which reduces account turnover by eliminating the need for frequent individual account management. This consolidation improves profitability by reducing administrative overhead and enabling more efficient resource allocation. The master account maintains reliable tracking of individual account balances and usage patterns, ensuring that account-specific billing requirements are met while achieving economies of scale.
Data Source
AI summary
A system is provided. An application determines a consolidated cycle date for a master prepaid account where a cycle date comprises the first day of usage periods for prepaid accounts. The application determines that a first prepaid account is associated with a first cycle date and a second prepaid account is associated with a second cycle date where the first, second, and consolidated cycle date differ from each other. A first and second prorated amount is determined by multiplying a remaining fraction of a current first and second usage period times a first and second periodic payment, respectively. The first prorated amount is added to the second prorated amount to determine a first credit. Individual billing is discontinued for the first and second prepaid account. The first credit is applied to a first master payment amount payable on the consolidated cycle date under the master prepaid account.