Mobile Pricing Evolution and Innovation: Sponsored Data and the Connected Car

Sponsored data offers a way for third parties to pay a mobile operator for data access that is provided to end-users for free in exchange for engagement with the users. For the connected car, sponsored data removes barriers of engagement for data use for which consumers may not want a separate data plan or an add-on fee on a shared data plan. The model also enables the vehicle OEM to enable split billing and engage partners or app developers as sponsors for data allocations or zero-rated app use. A year after AT&T launched its Sponsored Data program at CES in January 2014, critics claim the program has failed to succeed and that sponsored data as a business model will not take off. Strategy Analytics reviews a range of challenges and opportunities for sponsored data, provides examples of launches to date around the globe with a wide range of use cases and sponsors, discusses leading solutions providers, and offers recommendations specifically for the automotive industry to consider around use of sponsored data for connected cars.