Telco

Dynamic Tariff Engine

Rule-based pricing system for telecommunication services that automatically applies discounts based on user profiles, time periods, and location types.

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Solution

This dynamic pricing engine for telecommunication services automatically applies appropriate tariffs based on multiple factors. The system differentiates between premium, business, and standard user accounts, applying specific discount rates for each service type (calls, data, and messaging). It factors in time sensitivity by adjusting rates for peak hours, off-peak periods, and weekends.

Location awareness is built into the pricing logic, with different rates for domestic usage versus international roaming. The system combines all applicable factors to calculate the final per-unit price and provides clear documentation of which specific pricing rules were applied to each transaction. This ensures transparent billing while maintaining flexible pricing that reflects both user loyalty status and usage patterns.

How it works

The decision graph processes telecommunications pricing through three key stages:

  1. User Profile Analysis: Evaluates whether the user has premium, business, or standard status and applies appropriate service-specific multipliers (greater discounts for premium users).

  2. Time and Location Assessment: Analyzes when and where the service is being used, applying different multipliers for domestic vs. roaming usage, and adjusting rates based on peak hours, off-peak periods, or weekends.

  3. Tariff Calculation: Determines the base rate for the specific service (calls, data, or messaging), then combines all applicable multipliers to calculate the final per-unit price.

The system documents which specific rules were applied, creating a transparent audit trail for each pricing decision.

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