November news round-up: the internet has gone mobile and India cashless

November news round-up: the internet has gone mobile and India cashless

The month of November was an exciting one in the tech industry. For the first time ever, more internet was consumed from mobile devices than desktop. This comes as no surprise since mobile-only emerging markets are the driving force behind the digital ecosystem growth.

Governments in emerging markets are also pushing more people to go online: India’s recent demonetisation plan urges people to pay online and use less cash, something which carrier billing will also benefit from.

On Fortumo’s side, we published the first version of our carrier billing deployment tracker in November as well as a market report covering the Nordic region. For news from elsewhere in the industry, check out our monthly news summary below.

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What are the three key mistakes digital companies do when expanding?

What are the three key mistakes digital companies do when expanding?

The digital world moves extremely quickly. 10 years ago there were zero smartphone owners in the world. Facebook was a small start-up whereas Uber and Airbnb did not exist. Today there are more than 2 billion smartphone owners who fuel an $88 billion app economy. Merchants operating in the digital economy must spot emerging trends and stay ahead of the curve if they wish to continue operating successful businesses. Otherwise, they end up in a situation described by Ernest Hemingway:

"How did you go bankrupt?"

"Two ways. Gradually, then suddenly."

The growth of the digital industry has today shifted into emerging markets. Internet accessibility in markets like India is accelerating while it is slowing down in mature economies. Affordable Android phones make digital entertainment accessible to more people than ever - average device cost has declined 50% since 2010 while income in markets like India have almost doubled.

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Segmented bundling: road to increased prepaid monetization?

Segmented bundling: road to increased prepaid monetization?

This article originally appeared on The Fast Mode.

The British mobile operator EE and Apple entered a partnership to bundle Apple Music with EE services in August. While OTT bundling is commonplace for carriers, this partnership is notable because EE has a differentiated offering for its prepaid & postpaid subscribers. Postpaid subscribers get Apple Music but the prepaid subscribers can listen to music through MTV Trax instead. Such a segmented approach to bundling includes significant advantages for mobile operators, both in reducing churn and increasing revenue.

How so? Today, mobile accounts for 42% of e-commerce traffic but only 21% of revenue. This means a lot of people are window shopping on their mobile devices but then making purchases somewhere else, i.e. desktop. Since a majority of new people are coming online in emerging markets where smartphone growth is the biggest, the amount of low income “window shoppers” with only access to smartphones but no way to make payments online will grow.

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How to do a background check on your carrier billing provider?

How to do a background check on your carrier billing provider

Last week we wrote about which type of partner to choose for carrier billing: a payment gateway, carrier billing provider or direct integrations with carriers. In case of the second option, there are dozens of alternatives available. There are a small number of providers with global coverage, many more focusing on specific regions or countries. But beside coverage, what else should you keep an eye out for?

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Carrier billing in the Nordics: 2016 market report by Fortumo

Carrier billing in the Nordics: 2016 market report by Fortumo

Fortumo's latest market report that we are publishing today profiles carrier billing in the Nordics.

The countries profiled in the report are Denmark, Finland, Norway and Sweden.

The Nordic region is one of the wealthiest in the world, with all countries belonging to the top 20 countries globally in national income per capita. With a well-developed telecommunications infrastructure, high-speed mobile internet is accessible to almost everyone and has also resulted in very high smartphone ownership rates.

This makes the region attractive for any digital merchant as user’s access to digital content and disposable income are high.

While a relatively large amount of people have access to card-based payments thanks to owning a credit card, carrier billing is still among the most popular payment methods for digital content.

This is either due to inconvenience in the checkout process where card-based payments require the user to enter substantial amounts of personal data about themselves; or due to the fear of fraud - that the same information shared with merchants might become compromised.

Due to this, carrier billing is a suitable alternative payment method to enable purchasing for people who either can not or do not want to make card payments online.

If you want to find out more on the region's demographics, carriers and user spending behavior, download the report below!

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