Usage Based Billing

Usage based billing is a billing method where the subscriber pays the fee determined by the amount of traffic or usage of services, as opposed to a flat fee. In this type of billing, the charges are generated at a periodic interval based on the service usage of the subscriber.

In usage based billing model, the real time billing system relates the billable usage events to the subscriber account balance according to the pricing structure. Whenever the billing system receives these real-time billing events, the rating engine rates the events and immediately posts charges to the subscriber account.

The usage based billing method involves the following processes to rate the billable usage events:

Example: Bandwidth used for a particular period.