Over-the-top (OTT) storefronts that have implemented direct carrier billing solutions have experienced an increase in transaction volumes, average transactions values and conversion rates.
A new white paper from Juniper Research and Amdocs also says that while operator storefronts and portals account for less than 7 percent of the almost 56 billion app downloads in 2012, the introduction of direct carrier billing solutions on third-party storefronts enabled operators to substantially increase their content revenues.
“For the operator, the storefront and the developer, direct carrier billing is an increasingly attractive option. Storefronts and developers can monetize demographics which either do not possess credit cards or are unwilling to give out card details online; the operator can retain and enhance its role in the content value chain," said white paper author Dr. Windsor Holden.
Since storefronts such as Google Play and Windows Phone Store are expected to increase their share of app downloads over the next five years the scale of the opportunity for monetization through this mechanism is expected to grow.
“Direct carrier billing helps operators grow new revenue streams by leveraging their key asset: the billing relationship with consumers. In 2012, we processed on behalf of our operator customers three times more Google Play purchases over direct carrier billing than in the year before," says Rebecca Prudhomme, vice president of product and solutions marketing at Amdocs.
Prudhomme also stated that operators have an important role in app store monetization and consumers' preference for charging their mobile accounts.
"In the future, beyond payments, we expect operators to leverage their big data to enable personalization of various m-commerce use cases, from content discovery to coupon redemption," she said.