APPLICATION-BASED PRICING: OPPORTUNITIES, BUSINESS MODELS AND CASE STUDIES

The fact that consumers generally do not pay for content and apps is a fundamental consideration when deploying ABP solutions and exploring the underlying business models.
Operators need to consider innovative tariffs to maintain ARPU and remain competitive as mobile data prices and per-user spending on digital content decline. Application-based pricing (ABP) is the inclusion of third-party content and services (applications) as part of tariff structures. ABP helps operators and over-the-top (OTT) players to further monetise consumer demand for popular apps on mobile devices. Apps drive smartphone adoption, and generate mobile data traffic, which in turn generates mobile data revenue for operators.
This report analyses the opportunities that ABP creates for operators and vendors by:
assessing the benefits of launching ABP for operators, OTT service providers and customers
providing recommendations for operators, OTT players and vendors
examining best practices from around the world and matching them to different consumer profiles and contexts
investigating business models and partnerships between OTT service providers and operators
analysing operator–vendor engagement and qualifying vendors’ solutions for ABP
providing detailed operator case studies and vendor profiles.
COMPANY COVERAGE

The following companies are mentioned in this report.
Case studies of operators, OTT players and content providers
Aircel
Airtel India
AIS Thailand
AT&T
Aurasma
Beeline
Deezer
Deutsche Telekom
Dialog Axiata
DiGi
dtac
EE

ESPN
Facebook
Globe Telecom
Google
Mobilink
Orange
Saudi Telecom Company (STC)
SingTel
Spotify
Telefonica Digital
Telefonica UK (O2)
Telenor Group

Telkomsel Indonesia
Twitter
Verizon Wireless
Viber
Vodafone Qatar
Vodafone (UK)
WhatsApp
Wikimedia Foundation
WiMP
XL Axiata
Vendor profiles
Alcatel-Lucent
Amdocs
AsiaInfo–Linkage
Comverse
Ericsson

Hewlett-Packard
Huawei Technologies
Redknee (formerly NSN)
Openet

Openwave Mobility
Orga Systems
Oracle (Tekelec)
Volubill