New research from mobile billing provider, mBlox predicts that within three years, carriers will more than double their revenues from off-portal entertainment. The research shows that carrier revenues will grow to $8 billion by 2011 compared to $3 billion in 2007 due in large part to providing value added and enabling services to off-portal publishers.
The research, conducted in conjunction with Cambridge University's Judge Business School, found that new revenue will principally come from three newly emerging areas: WAP billing, sender pays data and handset/subscriber data. These services will help off-portal content and service providers to meet growing consumer demand for rich mobile entertainment on the mobile internet.
Currently, the majority of carriers' off-portal content revenue comes from Premium SMS, SMS and short code rental. The off-portal industry has grown rapidly because these services have been available to a multitude of companies who have innovated, invested and created demand. The research findings highlight the growing value of the off-portal community to mobile carriers. Furthermore, this provides carriers with new ways to monetize their assets while creating additional value in the off-portal markets.
Andrew Bud, executive chairman of mBlox comments: "The off-portal community is looking for enablers to help make their services richer, more personal and easier to use. Carriers can make significant revenues from these services, as this study shows. I'm delighted with these findings, as it is essential that carriers are a part of this value chain to allow for continued investment into mobile infrastructure and new services."
About principle carrier off-portal revenue drivers
WAP billing - $2.5 billion
Utilizing the power of the mobile internet, WAP billing will create a universal two-click charging model with transparency, which protects the consumer and enables business models for a wide range of content including video, music, games and advertisements.
Sender-pays data - $1.7 billion
Sender-pays data is the key to unlocking the mass market for rich media to the mobile phone. This allows for revenues to be distributed throughout the value chain while protecting the consumer from unintentional bill shock. By increasing consumer trust through transparent pricing of downloadable content, the market will unlock additional revenues for the industry.
Handset and subscriber data - $1.5 billion
Handset and subscriber insight information will provide a series of data look-up services that will provide insight into the handset and its owner. These new services are crucial for the effective distribution of content and the development of many applications, including mobile advertising and location-based services. Carriers either have already or can infer these data, and can charge for them thanks to their indubitable value to content providers. The key to making these services available will be a suitable approach to privacy, which of course, will vary from country to country.
Posted to the site on 11th February 2008
Posted to: www.cellular-news.com/story/29213.php