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What's Inside a Pricing Plan

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Plans are built by mixing and matching various usage categorizing/pricing components as illustrated in the table below.

Pricing Plan

Usage Type

Rate Plan

Rate Detail

Distance Type

Rate Method

Location

Amount

Domestic 1+

Domestic

1

Intralata

Default

.10

2

Interstate

State

NY,MA,CT

.15

3

Interstate

State

GA,AL,MI

.20

4

Interstate

State

TX,NM,AR

.25

5

Interstate

State

CA,OR,WA

.30

6

Interstate

Default

.35

International 1+

England Special

7

International

Country

England

.50

8

International

Default

1.00

Other...

At the lowest level are Rate Detail specifications that relate distance, location, and rating method with a per-unit rate:

  • Distance Type – classifies the distance between the originating and terminating number. The IDI platform provides seven pre-defined distance types: intralata, interlata, intrastate, interstate, international, reclassify and wireless. Additional user-defined distance types may be created in the Data Management Distance Types table.

  • Rate Method – is an algorithm for calculating the cost of usage. Some examples include State, Country, Area, Point-to-point, and Dialed Digits. Rate methods are matched with distance types in the rate detail.

  • Location – is the extension of a distance type/rate method combination in a rate detail. It more closely defines a location, area, or other entity for which a rate is being specified. For example, a rate detail that uses the Interstate distance type and State rate method uses Location to specify a group of states.

    Locations are defined using several applications. For example, Data Management provides tables for defining States and Countries. The Calling Areas function in Product Management lets you define locations based on dialed digits, LATAs, SIDs/PMNs (for wireless), or other criteria.

    When the Default rate method is used, a location specification is not required. This is used to cover all locations within the distance type that are not specifically named.

    At the next level, rate detail specifications are used to build Rate Plans. In the table above, the Domestic rate plan has six rate details to cover the five Interstate distance type/location combinations - four groups of states, plus a default category to cover any states that are not specifically named.

    At the top level, rate plans are matched with usage types in a Pricing Plan.

  • Usage Type – is a means of categorizing a call for rating. Some examples are Directory Assistance, 800 service, International 1+, Domestic 1+, Canadian 1+ and 800. The IDI platform provides many standard usage types. Each applicable Usage Type for a service number is associated with a specific rate plan.

  • Pricing Plan Group – is a means of ranking pricing plans to establish the order by which plans are searched to find a matching rate detail when a call is rated. For example, if an account has a pricing plan for special rates on nights and weekends usage and another plan that does not provide the special rate, the nights and weekends plan should be evaluated before the other plan to ensure the special rate is applied to nights and weekends usage when applicable.

    Pricing plans are assigned to a pricing plan group. Each group is assigned a rank such that plans in a higher ranking group are searched before plans in a lower ranking group. Further, plans are ranked within their respective groups. Higher ranking plans in the group are searched before lower ranking plans.

    Pricing Plan Category is an alternative method for establishing the order by which pricing plans are searched. With this method, The IDI platform finds eight valid pricing plans by starting the search for from the most specific to the more general levels.

    Pricing Plan Groups and Pricing Plan Categories are mutually exclusive. You can use one or the other method, not a combination of both.

    Every applicable usage type must be covered in the pricing plan(s) assigned to a service number; otherwise, calls of that type cannot be rated. This can be accomplished in a single pricing plan, or several plans depending on your requirements. For example, the table above handles all usage in a single plan. As an alternative, you may want to use two plans - a standard plan with the Domestic and International rate plans for most subscribers, and a special plan specifically for subscribers that make frequent calls to England.

    Calls that cannot be rated are noted as Unbillable or Unguidable. These calls can then be analyzed to determine the reason the call could not be rated, for example, lacking coverage for a usage type, distance type or location. Once the problem is fixed, the call can be re-rated and the usage billed.

    When constructing a pricing plan, start by building the component rate plans and rate plan details. Then create the pricing plan in the Product Catalog and add the rate plans.

See also:

Rating Process

Examples

Methods for Computing Cost

Rating Terminology