Juniper Research stated operators stood to make significant gains from direct carrier billing (DCB) services over the next five years, fuelled by rising adoption of digital services by consumers.
In a report, the research company predicted spending over DCB would grow from $37 billion this year to $100 billion in 2025 due to an “increasing shift to subscription-based monetisation models for digital services such as games, video streaming and music”.
DCB offers a convenient way to “combine monthly subscription costs” into regular mobile phone bills, Juniper Research stated, recommending operators should cash in on the demand by “expanding their partnerships with digital service providers” and boosting the availability of carrier billing.
Report co-author Sam Barker explained digital gaming was “an immediate opportunity”, recommending operators forge partnerships with big-names in the sector including Microsoft and Google.
But there is also a significant opportunity around spending on physical goods, particularly in markets with high smartphone penetration “and accessibility of same-day delivery services”. Spending via DCB could hit $600 billion by 2025, Juniper Research stated.
There are challenges, though, with the company noting operators will need to re-evaluate their approaches “to compete with established payment methods” including credit cards and digital wallets. It suggested cutting fees and alignment “with established payment methods” as potential strategies.
DCB strategies will be discussed this week in a Mobile World Live-hosted webinar. Speakers from Docomo Digital, Zain Group and GSMA Intelligence will explore how operators can use the technology for more than just value-added services or app stores; maximise value from digital service businesses; and go beyond simply providing connectivity by grabbing a bigger slice of digital spend.
The webinar takes place on 7 August at 10am BST: click here to sign up [1].
[1] https://view6.workcast.net/register?cpak=8718764661121949
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