Telcos today are critical components in the digital entertainment ecosystem. Companies including Google, Amazon, Apple, Netflix and Spotify partner with telcos in order to grow their revenue (carrier billing payments) and user base (co-marketing deals through bundling).
However, carrier billing and bundles are not always made available to the entire telco subscriber base. In some cases, telcos decide to launch digital merchant partnerships only for their postpaid customers. While the reasons for focusing on postpaid make sense, this means a significant portion of their subscriber base is unable to access premium digital content.
There are more than 5 billion mobile users in the world, and the vast majority of use a prepaid SIM card: 62% in Brazil, 96% in Nigeria and 97% in Indonesia. Even in mature markets such as Germany, prepaid SIM card ownership is at 39%. This means focusing enabling carrier billing and bundles only for postpaid audiences limits the revenue and user growth digital merchants are looking for when launching telco partnerships.
In this white paper, we explain why telcos currently avoid enabling digital services for their prepaid audience, how the actual performance of digital services with the prepaid audience looks like with data from Telefonica, and challenges related to prepaid can be overcome.
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