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2001/05 Billing Magazine

A new arrival on the Asian market

Arcotect, a new billing solution provider, has officially launched itself into the Asian market with offices based in Hong Kong. Anders Lindstrom finds out more.

North America and Europe have become the home to many of the leading billing vendors, with a few exceptions in Israel that is. But now, an Asian billing company is set to make its presence known on the market. Launched in June last year Arcotect Ltd. is now ready to be introduced. Based in Hong Kong, they exhibited at IIR's AsiaPacific Billing 2001 event in March, which was the company's first major appearance. Aiming specifically at the Asian market, Arcotect offers billing, customer care management and inventory management, within its product line.

The initial founder of Arcotect is Daniel C.S. Ng, who is now the company's CEO and chief architect. Mr Ng has already made an impact on the Chinese press, by standing out as a non-typical Hong Kong chief executive. He told South China Morning Post in December last year, "I want people on my team to think about fun when they think about working for me. We work long hours and if my staff do not have fun, they will die." The Chinese journalist also noted that Mr. Ng had guns on his desk, but not to fear, they were from a recent paintball game. Somewhat surprising, for any chairman, is that he encourages his staff to take out their anger and stress with paintball games. An interesting theory that might lead to many paint-covered bosses in the Western world!

On a more serious note though, is there room for another billing vendor? Well, Daniel C.S. Ng is confident that there is "Enterprises around the globe are weaving the Internet into the fabric of their strategic goals at an alarming rate," he tells Billing. "Never before has a new medium had such a profound effect on all facets of business. In such a competitive market, ISPs must transform their own operation to meet the ever-changing and sophisticated customer's need."

He considers the company being Hong Kong-based as a key differentiator. "The edge of Arcotect Billing System (ABS) is that we have the knowledge and understanding of Asia Pacific, especially Hong Kong and China." he explains. Furthermore, as a new company on the market, what positive and negative information did they 'take' from the existing billing vendors? "Most vendors focus on technologies and forget operation issues such as front/back office integration. Our solution is tailored for the Asia Pacific market, where custom solution is very important. In most cases, we don't package our solution." Even though it is only targeting Asia at present time, a globalisation is in future plans. "Asia Pacific is our springboard, but in the long run we are targeting the global market. At the moment, we are just at the beginning of attaining this goal."

Does Mr. Ng see any difference in what requirements the Asian operators ask for, in comparison to the European or American operators? "When compared with European or American operators, the requirements asked for by Asian operators are less 'sophisticated', which means they will not ask for too complicated CRM to go with the billing. However, in Asia, where the telecommunication market has been opened for external competition, say for example in Hong Kong at the moment, flexibility in rating is a perennial concern for a lot of operators. The SAR [Special Administrative Region of China] Government decided to progressively open up the external telecommunication facilities market from the 1st of January, 2000. This enables Hong Kong to take advantage of newly emergent technology and innovative services." The SAR Government is now only licensing companies that will bring new cables to land in Hong Kong, rather than those who simply purchase IRUs of existing cables. This will be allowed until December 31, 2002. "Under this gradual opening of the market," continues Daniel C.S. Ng, "the operators still face more competition from Europe and North America, and the demand for more sophisticated applications for billing will increase."

The name Arcotect comes from the term Arcology, which embodies the fusion of architecture with ecology. The company's remit in terms of client base is: "Telcos and ISPs who are looking for a cost effective billing solution and local expertise with local support," explains Mr Ng. "And those who are looking for total solutions that ABS will be incorporated with other applications from Arcotect, say for example Customer Relationship Management (CRM), Enterprise Resource Management (ERP) and Enterprise Information Portal."

Shortened to ABS, Arcotect Billing System, the software platform's core features include extended channel management, flexible billing, scalability and multi-location operation support. Additionally, ABS offers several optional features, such as marketing campaign management, a customer loyalty programme, retention and churn management, extendibility to Voice over IP (VoIP) and web-enabled remote agent management. The latter feature allows you to manage more channel partners effectively to disseminate your products and services information to various potential customer segments. "ABS provides a comprehensive billing, provisioning and customer care software suite for ISPs, ASPs and telcos," clarifies Ng. "It features on-line subscription, billing, bank reconciliation, customer support, e-mail to customers, online billing presentment [EBPP], RADIUS interface, and both automated provisioning on-, and universal billing interface to accept usage information from - a variety of Unix/NT/Win2K based servers."

Even though the company has not even existed for a year yet, the ABS product has been around for a much longer period. "ABS has been developed for over four years," he says. "It has been perfected over four solid years of billing system development experience. The billing system development team has witnessed and experienced various phases of system requirements according to market competition both in narrowband and broadband Internet service provisioning." Currently, ABS Version 8.0 is out on the market.

Even though the company is not lacking confidence, they are currently lacking operators. "We are bidding some projects at the moment, but it is too early to disclose," he states. However, Arcotect is not only aiming at telcos, but also the utility market and the company's product line expands beyond billing and customer care with one of their other offerings HRMS 2000, an HR (Human Resources) solution developed specifically for the e-Business world.

Besides ABS, Arcotect also offers DNA, Digital Network Alert System, a multi-purpose, global platform messaging system. The solution enables its subscribers to receive an alert message through their mobile SMS, pager, e-mail and fax whenever their credit card is stolen and an unauthorised payment transaction is being carried out. Basically, it is a security system for non-cash payment alert services, made both online and off-line. The product was patented back in 1994 in China PRC, Hong Kong SAR, the United States, France and Germany, and a year later in Taiwan and the United Kingdom as well. How does the DNA work with the ABS platform? "In billing systems, the operator can pre-set the alert level, say for instance, customers will receive SMS through their mobile or pager," explains Ng. "In the case of content billing, DNA can be incorporated to remind the content usage of a customer and give the customer a better idea of content fee." A major alliance has already been struck in Hong Kong for the DNA system, including Hutchinson Telephone Company Ltd., Peoples Telephone Company Ltd., SmarTone Mobile Communications Ltd. and other operators in Hong Kong. " With such a strong alliance and wide coverage," says Ng, "by mid 2001, Hong Kong's telecommunication network will be fully covered by the DNA system. At the moment, if you are the user of one of the [previously named] operators, the SMS cannot be sent cross-platform. With this alliance, the DNA server is connected to all the operators so that the SMS can be sent cross-platform."

Looking ahead for the future market of billing, what does Daniel C.S. Ng personally think are the key features for billing in the coming period? "Definitely, convergent billing system. In fact, we are working on our ABCS (Arcotect Billing Convergent System) which will have the mediation module for WAP, GPRS, m-commerce, and roaming. This will help telcos to incorporate all billing into one single bill." The ABCS solution is yet to be released.

Back to the question of being an Asian vendor in Asia. Will it make it easier for Arcotect to get attention from the operators because of its Hong Kong base? "As an AP based billing vendor I think AP operators will be prone to choose us and we have the presence and support here in Asia." And how do they expect to get the operators' attention in the first place, besides marketing? "With our expertise and experience, we expect that ABS will penetrate to telcos by word of mouth."

With a fresh approach and understanding of the market, Arcotect is now ready to sway the Asia Pacific market, fighting the competition of European, American and Israeli billing vendors. And considering its non-typical CEO maybe the Asian market will appreciate the new arrival.

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