 traffic the Call Data Record in PSTN might become the Internet Protocol Data Record (IPDR). It is possible to charge for individual IP-based services by looking at the application at application level. However, IPDR requires processing and adds cost to the traffic handling. Application level charging is not possible for the encrypted and tunnelled IP-VPNs. The main service provision fee is the application service revenue per application and segment. The pricing should reflect the end-user value of the application content. The charging may consist of: activation fees monthly fee per pay service set-up tariff per pay 'session' per-minute tariff of pay 'session' Understanding Changing Telecommunications - Building a Successful Telecom Business Application charge Content creator Core network connection Application subscription Service provider (end-user and usage profile) charges Core/control and backbone network End user Access provider provider Access payment according to volume Figure 5.18 Financial transaction model 1 for video communication services End-user profiles and connection fee Application subscription Service provider and usage charges Core/control and backbone network End user Access provider provider Connection fee Figure 5.19 Financial transaction model 2 for video communication services per-charge unit tariff of pay 'session' operator commission (Note: 'Session' above is not equal to a TCP session.) Flexible Charging, Example It is not advisable to use the same type of charging for all services. A security ser- vice for example does not generate traffic (or very little traffic). Here is an example of flexible charging: 20 pence/session Photos 50 pence/picture Music 50 pence/song Weather Emergency £1/month Monthly cost: £10-20 Services Micro payments The e-commerce and m-commerce 'micro payments' (such as parking fees, cinema tickets, bus ticket) are an income source for the payment transaction handler(s). The handling can be split into payment support and charging. For the end user it is convenient