Channel Billing: What It Is and Why It’s Important
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Channel Billing: What It Is and Why It’s Important

Do you like the sound of having unlimited inbound minutes? Seems like a pretty smart business decision, doesn’t it? Well, channel billing might just be what you’re after.

So, what is channel billing?

It’s an alternative billing method for servicing DIDs and other phone numbers that allows users to pay a flat fee for a specific number of concurrent calls instead of paying per minute. With channel billing, you’re able to have unlimited calls as long as there’s never more concurrent calls than channels you’ve provisioned. You can set up channel billing across as many numbers as necessary.
Many companies enjoy the benefit of channel billing because it’s a predictable expense rather than a fluctuating one based on usage.
In theory, you could have five channels shared across 10 numbers and make use of the unlimited inbound minutes on these 10 numbers at no additional charge. However, this means you can only support a maximum of five simultaneous calls across all 10 numbers at any given time.

How do I know if channel billing is right for my business?

With that in mind, there will typically be certain businesses or scenarios that are better suited to channel billing than others.

Consistent Usage

Let’s take a contact center with a number of agents as an example. Given that these agents spend most of the day using the phone, it will probably be cost-effective to leverage channel billing rather than opt for a metered billing method.
The contact center knows exactly how many concurrent calls they need to support, based on the number of agents the organization has and how many on-hold calls they need to support at one time.
Number of agents + number of on-hold calls = Total number of concurrent calls
Using a channel setup that accommodates this total number, the call center can simplify and reduce their phone bill.

Inconsistent Usage

Outside of a contact center, it will often boil down to how consistent that organizations traffic is. Are there peak times where they’ll need vastly more channels to support their traffic? If that’s the case, then channel billing might not be the optimal choice as the organization is paying for those additional channels even when they’re not in use.

What if I want the best of both channel billing and pay-per-minute?

There will be scenarios when blending both channel and pay-per-usage billing is the best option. Almost all organizations have a baseline of consistent usage that can be set up as unlimited channels, while more ad hoc calling needs can be serviced by pay-per-minute numbers.

About Telnyx
Telnyx offers channel billing as a feature, and it’s currently available on the Telnyx Mission Control - it’s super easy to set up! You’ll be able to customize your billing methods to ensure your company is getting the best solution based on your current usage.
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