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App stores like Google Play and Windows Phone Store that have implemented Direct Carrier Billing solutions have experienced a sharp increase in transaction volumes, average transactions values and conversion rates, according to a new white paper from Juniper Research and Amdocs. The research has also found that while operator storefronts and portals now account for less than 7% of the 55.9 billion app downloads in 2012, the introduction of Direct Carrier Billing solutions on third-party storefronts enabled operators to substantially increase their content revenues.
And this solution works both in developed and developing markets as it allows carriers to reach users that have no credit cards or are using prepaid service (younger demographics). Moreover, the whole process is easier for end users, allowing for few-click purchases. Therefore, it is expected that the scale of the opportunity for app monetization through this mechanism will grow in the years to come.
In fact, there are reasons to believe that direct carrier billing will extend beyond the “pure” mobile realm to include some “real world” items and services such as books, flowers, petrol, tickets, coupons and more.
Plus, with the addition of analytics of the BSS (Business Support Systems) Big Data, the operator can add far more value to mobile commerce, enabling personalized content discovery and super-targeted ads.
The Mobile Payments in the App Store Economy: Winning Strategies for Telcos White Paper is available to download from here.
About The Author
Dusan Belic
Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.
