1. Using Subscription Management
  2. Usage Rating Models

Usage Rating Models

The new usage rating engine lets you charge customers in different ways, depending on how your business prices its services. Here are a few common models you can use.

Flat Rate

This is the simplest model. You charge one fixed price for every unit of usage, no matter how much the customer consumes. Example: You charge $0.25 per printed page. If the customer prints 2,000 pages, they pay $500. Flat rate pricing works well for straightforward services like printing, messaging, or bandwidth usage.

Tiered Pricing

In this model, rates change as usage increases. You define tiers (usage ranges), and the system automatically applies the appropriate rate for each tier.

Example:

First 100 minutes → $0.10 per minute

Next 100 minutes → $0.08 per minute

Above 200 minutes → $0.05 per minute

Tiered pricing is ideal when you want to reward higher usage or offer bulk discounts.

Attribute Based Pricing

Here, the price changes based on attributes such as region, service type, or destination.

Example: Calls to the US cost $3 per minute, Canada $5, and the UK $7.

This model is great for global or differentiated services, where the same product might cost differently based on context.

Pre-Rated Usage

Use this model when another system, such as a mediation platform, has already calculated the charges. Subscription Management simply imports the rated events and handles billing.

Example: The Telecom system calculates a total usage charge of $200 and sends it for billing.

This keeps your billing in one place while allowing other systems to handle the rating logic.

Allowance Based Pricing

This model lets you include a fixed amount of usage or credit in the plan, and only charge for anything beyond that allowance.

Example: A customer gets 200 GB of free storage each month, and extra usage is billed at $0.10 per GB.

It’s a common choice for subscription plans that bundle both committed and pay-as-you-go usage.

Adjustment Matrix

The adjustment matrix helps you fine-tune pricing without creating multiple rate plans. You can adjust base prices or apply discounts based on multiple attributes — for example, region, call type, or product category.

Example:

  • Calls to the US → $3 per minute

  • Calls to Canada → $5 per minute

  • Calls to the UK → $7 per minute

You can also combine matrix pricing with tiers or discounts to make pricing more dynamic while keeping setup simple.