When telcos sell their own services – calls, data and messaging – they get to keep all of the revenue. With carrier billing, a majority of the revenue is passed on to 3rd party service providers.
For example, app stores using carrier billing need to pay developers between 70% to 85% of the order value, which means telcos can keep only up to 30% of the revenue. This can create fears that launching app store carrier billing will lead to revenue cannibalization.
The concern arises because of the assumption that the amount of money subscribers are willing to spend through telco channels remains the same while some of the spend shifts to services where the revenue share is smaller.
In our latest case study with the leading Vietnamese telco Mobifone, we find that this is not the case. Download the case study and find out how launching carrier billing for Google Play increased Mobifone’s ARPU by 130%!