CA2327614A1 - Toll telephone carrier selection system and method - Google Patents

Abstract

A communication system for maximizing the economic efficiency of long distance telephone calls is set forth. A dual-network system is used that allows a subscriber to select various preferences such as the level of quality desired to be matched by a controller to the most economical long distance line under contract by an entity operating the controller. A subscriber enters a destination telephone number into a personal computer, the number is sent via the Internet to a controller that uses a subscriber preferences and long distance carrier contract information to select a long distance line. The controller connects to the destination telephone and also to the subscriber's telephone completing the desired telephone call.

Description

TOLL TELEPHONE CARRIER SELECTION SYSTEM AND METHOD
BACKGROUND OF THE INVENTION
1. Field of the Invention The present invention generally relates to communication systems and a method of using same, and more particularly, to a dual network system and a method for matching subscriber preferences with long distance carrier contract criteria for obtaining cost rate optimization for long distance service.

2. Description of Related Art Long distance telephone service is currently marketed either directly from an inter-exchange carrier to a subscriber or from a reseller to the subscriber.
In direct marketing, the primary provider (inter-exchange carrier) may have several different contracts for the subscriber to choose from, each having different rate criteria.
Rate criteria may include many factors such as: time of day, length of call, destination of call, billing time increments, quality of connection, minimum usage requirement, and any other factor relating to long distance communications. Most subscribers are limited to selecting one of the available contracts for all of their service.
Resellers negotiate huge amounts of time on an inter-exchange carrier's system with contract criteria similar to those noted above except at a different rate. A
reseller than contracts with a subscriber at another rate and with contract criteria that usually more closely matches the subscriber's requirements. The reseller must accept the risks in matching contract criteria with actual usage. There is a need to match subscriber preferences to reseller contract criteria on a real-time basis, thus increasing the efficiency of the communication system, reducing the reseller's costs and thus allowing the reseller to offer even more cost effective contracts to subscribers.
Primary providers and resellers use new telephone exchange switches that are highly computerized and capable of connecting telephone circuits in any manner specified in the software controlling the switch. Thus, a subscriber of telephone services is connected to the inter-exchange carrier's switch by a local loop which is provided by a local telephone company. In a typical scenario, subscribers to the services provided by the operator of the switch are given an access number and code to gain access to the switch and implement accurate billing to the subscriber.
Thus, a subscriber could dial into the telephone switch, and through the use of caller ID, or an appropriate access code, identify themselves and dial the telephone number to which they wish to be connected. In this manner, the reseller is identified by the access code used allowing the telephone switch to account for minutes consumed for which the reseller has contracted with a primary supplier of long distance telephone service. The call is then billed to the subscriber in accordance with the contract between the subscriber and the reseller. Obviously, the object of the business is for the reseller to make a profit on each call, or at least, on the overall traffic through the switch.
If the reseller has a single supplier of long distance minutes, the simplest way of achieving profitable operations is to advertise the sale of long distance telephone services to subscribers at rates which are in excess of the rates at which the reseller is purchasing the minutes. However, this is not always practical, as sometimes more advantageous contracts can be obtained by purchasing time having a rate structure which is not suitable for markup and presentation to the subscriber. In particular, for purposes of sales, it is advantageous to present the subscriber with a very simple rate structure.
Still another problem faced by the reseller is the fact that commitments must be made to subscribers for time periods which may not necessarily coincide with the duration of contracts for the purchase of time from the inter-exchange carrier. Thus, with resellers operating switches selling services to subscribers, either businesses or individuals, profitable operations involve elements of uncertainty and risk and, sometimes, the artful exploitation of multiple contracts providing time on long distance lines.

The existence of specific problems has spawned specialty resellers who draw customers toward overall service packages with special products of particular interest.
For example, a large segment of international long distance regards providing telephone services to ethnic communities. Typically these communities are geographically concentrated. Alternatively, where geographical concentrations are not the rule, there may be common media, publications, word-of-mouth, or other vehicles which can be used by the marketer to reach these groups. In the case of international telephone calls, components of the rate for calling a foreign country are 1) charges for the local loop and tie line connection charges associated with the point of origin, 2) the long distance service from the local loop or other connection in the international channel which brings a call into the foreign country, and finally 3) the so-called termination charges made by the local telephone company in the foreign jurisdiction.
Generally, local charges are fixed and relatively small because of the nature of telephone service, in the case of calls originating in the United States.
International links are also very competitive, although, depending upon capacity and quality, and the extent to which capacity is being consumed, there can be substantial disparities between the costs of long distance services provided by different providers.
Finally, termination charges can represent the bulk of the charges. For example, because Colombia has relatively modest termination charges as compared to, for example, Mexico, a one minute call to Colombia may be as little as 25 percent of the cost of a call to Mexico, even though the distance to Mexico is far less than the distance to Colombia.
The result is that in the face of specialized ethnic marketing resellers with a broader market cannot effectively compete, and purchasers of "ethnic"The result is that in the face of specialized packages may over pay for their service.
While the disparities noted above are easy to see in the case of international calls, similar anomalies and disparities occur in the case of national long distance telephone services. Moreover, they may be more difficult to predict and the number of choices available is sometimes far greater.
The present invention solves these problems by minimizing the risk and maximizing CM6CAN '3-profits. Extensive capabilities have been designed into the software which allows a reseller to enter into many contracts for long distance telephone service, sometimes involving minimum commitments on a monthly, yearly or other basis, and involving a multitude of different rates applicable to different cities at different times and, perhaps, varying in accordance with volume and other factors as set forth above. Thus, long distance telephone service resellers have computerized switches which balance cost, the need to fulfill minimum commitments to sources of long distance line time, and other economic factors in order to maximize the profit provided by the switch.
In accordance with present technology, when a subscriber initiates a long distance telephone call by transmitting information over a separate network to a reseller of long distance telephone service, the reseller controls the switch taking into account the time of day, the extent to which contractual commitments have been met, the location to which the telephone connection is desired, and so forth and on the basis of this information and the prices provided under various contracts into which the reseller has entered, makes the decision to use a particular inter-exchange carrier for the required time with the object of obtaining the optimum source for the service requested by the subscriber. Once this decision has been made, the switch is directed by its software to dial the access number for the selected provider of time and then calls the subscriber to make the desired connection to complete the call.
Present day telephone network technology has also spawned a spot market for the sale of telephone time. The line time becomes available in very short time frames.
For example, this may occur due to the fact that minimum commitments have not been met on a particular contract and a reseller must resell his minutes at very low prices in order to obtain some economic benefit from them, as opposed to allowing them to become wasted and lost because they were not consumed.
The goal, or at least the result, in all of these efforts has been to increase the liquidity of the market in line time. The result is improved competition and lower prices to the subscriber.
CM6CAN '4' Despite the obvious advantages of such an approach, there are still basic inadequacies left unaddressed. In particular, in accordance with the present invention, while the reseller has the opportunity of purchasing time in the long distance market, including the spot market, and thus is able to minimize his cost, the liquidity of selection provided by existing telephone network systems extends only as far as the reseller, and thus total liquidity is not achievable. As a consequence of this, two effects occur.
Firstly, the subscriber is deprived of the benefits of liquidity of cost. As a corollary to this first consequence, the subscriber is also deprived of liquidity as to quality of service. As a second consequence, if a reseller wishes to compete aggressively, it is forced to speculate respecting the price of telephone services and may or may not make money when it fulfills contractual obligations to subscribers after purchasing time on the spot market or on other markets, on account of the fact that such purchases are likely to be made subsequent to making commitments to subscribers upon the signing of contracts with them.
While, in principle, some liquidity can be introduced into the system through the vehicle of a subscriber signing multiple contracts with multiple resellers, and then using contractual information to determine for each call whether one reseller or the other is the more economical way of making a call, this procedure is clumsy and impractical for most subscribers and especially individuals, and any decisions made in such an arrangement are likely to be rough cut decisions which may approximate but not equal optimization.
In addition, it is unlikely that such a system would form an efficient economic model for very long, as the market is changing all the time, and a set of contracts which would provide a relatively economical model for the subscriber at one point in time may be completely inadequate months, weeks or even days later. On the other hand, it is not efficient for a subscriber to track the market for what may be relatively small returns.
CM6CAN 'S' SUMMARY OF THE INVENTION
In accordance with the present invention, the above-described inadequacies of prior art telephone communication systems and methods are overcome. The same is achieved through the use of a dual network system, wherein the system comprises a subscriber call request network which cooperates with a conventional telephone system moving subscriber long distance call requests through a programed control interface system. In particular, in accordance with present invention it is contemplated that users and sellers or resellers of time on telephone lines to various locations will, on a real-time basis, input supply and demand information into respective databases associated with a control system which matches real-time subscriber requests to real-time long distance contracts in accordance with subscriber selected parameters specifying, by way of example and not by limitation, cost, quality, call duration, call start time, call origination location and call termination location.
In accordance with one embodiment of the invention, it is contemplated that the control system will receive information respecting such factors as cost, quality, call duration, call start time, call origination location and call termination location from a subscriber over a telephone call request network. Likewise, the control system will receive in real-time or have permanently stored, ready for use and responsive to updates, information respecting rates for calls to various destinations for various providers, and how such rates are affected by call duration, for example.
Likewise, information respecting the quality of service provided by various providers can be provided in real-time or can be resident in the control system.
In response to the two sets of information, that is the subscriber information and the long distance carrier contract information, and in response to subscriber selected parameters, or other criteria selected by the system, dependent upon the design of the system or the requirements of its users whether they be keyed to supplying users or consuming users or a combination of the needs of both, depending upon the particular characteristic, the control system will match suppliers to demanders and complete the connection. Such connection can then be implemented by dialing "in" toward the subscriber, causing his telephone to ring, signaling him to pick up the receiver, while at the same time dialing "out" to the destination telephone to which the subscriber wishes to be connected and causing that telephone to ring, signaling the person at the other end to pick up the receiver and talk with the person placing the call.
Alternatively, the person placing the call may be directed by the control system to place a call to a particular number to join a call in progress or begin the patch through to the called number.
In connection with this, it is noted that the system can arrange conference calls with large numbers of persons calling into a common number, or alternatively the system placing calls and joining together numbers of conference participants.
In accordance with present invention, it is also contemplated that the system may be used to implement video conferencing, whether the same be full frame full motion or various lower bandwidth formats.
In accordance with the invention, it is contemplated that the existing telephone network would serve its current purpose, being accessed by the control system through a telephone switch of conventional design but controlled by software whose architecture is designed to implement the method of the present invention.
The supply and demand information network may be any existing information network, such as an in-house network of computers, which, while in place for perhaps other uses, has also been programmed by a particular company to perform the functions of the present invention coupled to an appropriate telephone switch.
By telephone switch in this application is meant any one of a number of commercial products currently on the market designed to receive numerous inputs from the customers of, for example, a telephone reseller and have a number of outputs whose function is to connect to suppliers of minutes of telephone time to various long distance destinations. The telephone switch may also be the apparatus at a company's facility which receives the incoming lines from the telephone company and distributes calls through the telephone system used by the company.
In accordance with a particularly advantageous embodiment of the present invention, supply and demand information may be transmitted from numerous individual subscriber-users at different locations over a public information network, such as the Internet (registered trademark). The reseller company operating the switch is connected to the subscribers, and may sign up new subscribers over the Internet. At the same time, the reseller company is connected to sellers of telephone time by the Internet. Upon receiving demand information from its customers, the reseller company compares this information to supply information provided to the reseller company by its suppliers, and dependent upon the parameters of the system, whether fixed, variable by the Company or responsive to consumer input, selects a supplier for the particular consumer call and, using the Internet again directs the company supplying the telephone time to make the connection in the outbound and inbound directions.
Alternatively, the reseller company operator of the system may have its own dedicated switch with lines offering service from various telephone service suppliers connected to the switch and may select which of those lines to which it wishes to connect its customer.
CM6CAN 'g-BRIEF DESCRIPTION OF THE DRAWINGS
Referring now to the drawings, in which like numerals refer to like parts throughout the various views;
Figure 1 is a schematical drawing of an existing telephone system showing the basic equipment and exchanges used to make a long distance telephone call;
Figure 2 is a schematical drawing of the present invention showing the relationship between the dual-network system;
Figure 3 is a schematical drawing showing the use of the Internet as part of the dual-network system;
Figure 4 is a schematical drawing of an alternative embodiment of a portion of the dual-network system;
Figure 5 is a schematical drawing of another embodiment of a portion of the dual-network system; and Figure 6 is a schematical drawing of yet another embodiment of a portion of the dual-network system.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
Referring to Figure 1, a typical prior art telephone communication system 10 is schematically shown. A subscriber of a long distance provider generally initiates a telephone call by dialing a number on a telephone instrument 12 whereby a local line loop 14 carries a signal to a local telephone office 16 where the call is routed via a bus line 18 to a local access and transport areas (LATA) switch 20, which is a conventional telephone switch, then routed to an inter-exchange carrier line 22. A
destination LATA
switch 24 routes the call to a destination local telephone office 26 which connects the call via a destination local loop 28 to a destination telephone instrument 30.
In this system, a subscriber is limited to entering a single access code which is used by LATA
switch 20 in determining which inter-exchange, or long distance, carrier is to be used.
In this application, the term networks) is used in its customary, broad sense, and may refer to systems which are hard wired and separate from other networks, of functional analysis and equivalents, such as "virtual" networks which may incorporate shared bandwidth and functionality with other networks. To the extent practical, elements indifferent systems including analogous functionality have been numbered with number differing by multiples of 100.
Referring now to Fig. 2, a dual-network communication system 132 is shown in schematic form. Dual-network system 132 includes a telephone or call request network 134 and a standard telephone system 136. System 136 is substantially the same as telephone communication system 10 except for links to the call request network 134 as described below.
Call request network 134 can have many different embodiments, a few examples of which are shown in Figs. 2-6, but the examples shown do not limit the potential arrangements that call request network 134 can have. The following describes various embodiments of call request network 134 as shown in the figures along with key interactive points with standard telephone system 136 of dual-network 132.
The call request network 134 shown in Fig. 2, consists of a subscriber's personal computer 138 that is preferably located in close proximity to a subscriber s telephone instrument 140. Subscriber's personal computer 138 is connected via a network 142 to a controller 144. Controller 144 is usually operated by a reseller, but could be operated by any entity having a plurality of contracts for time on a long distance line.
Controller 144 interacts with a telephone connection request data file 146 that contains subscriber preferences for long distance service, then compares the call request with the preferences and a long distance carrier data file 148 containing a plurality of long distance time contract parameters and instructs LATA switch 120 to connect the requested call via a selected inter-exchange carrier 122 otherwise referred to as a long distance carrier. Controller 144 also instructs LATA switch 120 to connect subscriber's telephone instrument 140 to the selected long distance line.
Thus, a subscriber begins the process of making a long distance call by entering a desired long distance number into subscriber's personal computer 138, that data is CM6CAN -1 ~-transmitted via network 142 to controller 144, which uses data files 146 and 148 to select a long distance carrier to be used and instructs switch 120 to connect to the selected line by instructing switch 120 to open a line through the selected carrier and open a line through LATA switch 124, through the called number's local office 126 to the destination telephone instrument 130 and to call back to subscriber's telephone instrument 140. The subscriber is thus connected via the selected line to destination telephone instrument 130 which is associated with the telephone number input by the subscriber in the first step of the call process. After such connections have been made and the call put through in both directions, the subscriber may talk to the person at the destination instrument using the conventional telephone network. During this time it is contemplated that the subscriber's computer may or may not be on, it's call implementation function being completed.
Referring now to Fig. 3, the equivalent of network 142 in Figure 2 is shown as a network like the Internet~ 50 for connecting subscriber's personal computer 238 to control 244. In this embodiment, a subscriber s personal computer or the like, i.e., a hand held device capable of connecting to the Internet~ 250, is connected via a local cable operator 252 or similar means to an Internet service provider 254, otherwise known as an ISP. ISP 254 is connected via cyberspace 56 to another ISP 258 which in turn is connected to controller 244. Thus, a subscriber would enter information such as a destination telephone number, which corresponds to a destination telephone instrument 230, and sends that data via local cable operator 252 to ISP 254, through cyberspace 256 to another ISP 258 and then to controller 244, with the result being a long distance connection as described above. As described above, controller 244 is responsive to subscriber preferences 224 in data bank 246. Controller 244 causes LATA
switch 220 to select a preferred long distance carrier line 222 connecting to destination telephone instrument 230 via LATA switch 224 in local office 226. Similarly, controller 244 instructs switch 220 to connect to subscriber's telephone 212 via local office 216, completing the call.
Shown in Fig. 4 is another embodiment of network 142 in Figure 2. It is contemplated that such a system will be employed by a business for the purpose of enabling employees at remote locations to make telephone calls and may be subject to user verification codes. A user's personal computer 338 or the like is connected via a local area network 360 or LAN to controller 344 which can be operated by the business. In this manner a user who may be any employee of the business, can enter the desired long distance number into their personal computer and have controller 344 route their call, using switch 320, via the most economical long distance carrier that the entity has contracted with for time on that carrier's long distance lines.
Shown in Fig. 5 is yet another embodiment of network 142, wherein a subscriber s personal computer 438 is connected via a wide area network 462 within an appropriate entity. This embodiment operates much the same as the one described above, completing calls in two directions through a controller 444 and LATA switch 420.
Fig. 6 shows a further embodiment of network 142 wherein a digital network 564 is used to connect a subscriber's personal computer 538, using a controller 544 and switch 520. Billing is implemented on a cost plus basis by billing software module 464, which is subject to maximum billing rate guarantees provided to customers and stored in memory 468. Module 464 outputs billing in any format, such as paper, CD Rom, or data signals transmitted to financial institutions directing the transfer of money from one account to another to effectuate subscriber s bill.
While an illustrative embodiments of the invention have been described above, it is, of course, understood that various modifications will be apparent to those of ordinary skill in the art. For example, the Internet~ may be used to also serve the function of carrying the voice of the subscriber, instead of the conventional telephone network.
Likewise, the audio Of a subscriber's computer may be used in place of a conventional stand alone telephone instrument. Such modifications are within the spirit and scope of the invention, which is limited and defined only by the appended claims.

Claims (8)

1. A long distance carrier selection system comprising:

a dual network having a telephone connection request network and a conventional telephone switch;

a telephone connection request data file containing requested telephone line selection criteria;

a long distance carrier data file containing a plurality of long distance carrier contract criteria; and a controller responsive to said telephone connection request data and said long distance carrier data for use in controlling said conventional telephone switch.

2. A long distance carrier selection system according to claim 1, wherein said telephone connection request network comprises an electronic network utilizing a first public data network service provider and a second public data network service provider, said first and second providers connected via cyberspace, whereby said input request data is transmitted to said controller over said telephone connection request network for initiating a telephone connection.

3. A long distance carrier selection system according to claim 1, wherein said telephone connection request network comprises an intra-company computer network.

4. A long distance carrier selection system according to claim 3, wherein said intra-company computer network comprises a local area network.

5. A long distance carrier selection system according to claim 3, wherein said intra-company computer network includes a wide area network.

6. A long distance carrier selection system according to claim 1, wherein said controller directs said conventional telephone switch to connect to a requester using conventional telephone lines and connects said requester to a requested destination party according to said telephone connection request data and said long distance carrier data whereby a lowest cost long distance carrier is utilized.

7. A communication system comprising:
a dual network having a telephone connection request network and a conventional telephone switch;

a telephone connection request data file containing requested telephone line selection criteria;

a long distance carrier data file containing a plurality of long distance carrier contract criteria; and a controller for assimilating said telephone connection request data with said long distance carrier data for use in controlling said conventional telephone switch.

8. A method of selecting a long distance carrier comprising the steps of:
sending a telephone call request to a long distance service provider via a network;
matching the telephone call request to a subscriber's data file for determining long distance line parameters, sending a control signal based upon said parameters to a switch, said control signal activating a selected long distance line connection to a called party and activating a line connection back to a party whom sent the call request.