Mobile Operators Will Generate $9 Billion From Carrier Billing by 2022

Mobile Operators Will Generate $9 Billion From Carrier Billing by 2022

Foto: Depositphotos

A new study from Juniper Research has found that carrier billing, which allows users to make purchases by charging payments to their phone bill, will generate $9 billion annually for mobile operators by 2022. This is a threefold increase on 2017’s figure of $2.9 billion.

According to the new research, growth is increasingly being driven by bundled content such as Spotify (across Europe) and Netflix (in markets including the Philippines and Mexico). The research argued that by using carrier billing for acquisition, OTT content providers can reduce marketing costs by leveraging the brand name of local mobile operators.

The research highlighted the new opportunities for carrier billing in sectors such as ticketing and physical goods purchases, citing the recent deployment by Amazon in Japan as a potential game‑changer. However, it also stressed that for operators to compete effectively with card payments and players such as PayPal, they would need to accept a lower revenue share, reducing their cut from 15% or more to the single digit range.

The research also argued that operators needed to be more proactive in promoting carrier billing, but were currently being hampered by limited resource from their marketing departments, which were overwhelmingly focused on smartphones and package differentiation.

Juniper additionally claimed that even where carrier billing was in place, usage was often constrained by low spending limits designed to limit exposure to fraudulent purchases, an issue that could be addressed by implementing improved reporting platforms.

Indeed, Juniper argued that carrier billing was the most significant underdeveloped revenue stream for operators. According to research author Windsor Holden, "The customer billing relationship is one of the mobile operator’s greatest assets, but consumers are often unaware they can use their phone bill to pay for a wide range of goods and services."

More from category

Security Appliance Market Had Double-Digit Growth in 1Q18

Security Appliance Market Had Double-Digit Growth in 1Q18

22 Jun 2018 comment

According to IDC, the total security appliance market saw positive growth in both vendor revenue and unit shipments for the first quarter of 2018 (1Q18).

IoT Connections Will Grow 140 Percent to Hit 50 Billion by 2022

IoT Connections Will Grow 140 Percent to Hit 50 Billion by 2022

21 Jun 2018 comment

New data from Juniper Research has revealed that the total number of connected IoT sensors and devices is set to exceed 50 billion by 2022, up from an estimated 21 billion in 2018.

EMEA External Storage Market Returns to Explosive Growth

EMEA External Storage Market Returns to Explosive Growth

21 Jun 2018 comment

The total EMEA external storage systems value increased almost by 24% in dollars in the first quarter of 2018 (+7.4% in euros), according to IDC.