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The Application-based pricing: opportunities, business models and case studies

  • December 2013
  • -
  • Analysys Mason
  • -
  • 70 pages

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About this report

Mobile tariffs have evolved significantly in the past few years as consumer demand has moved from voice minutes and SMS messages to data bundles that enable access to mobile content and apps. As mobile data prices and per-user spending on digital content decline, operators will need to consider innovative tariff structures to maintain ARPU and remain competitive.
- Application-based pricing (ABP) is defined as the inclusion of third-party content and services (that is, applications) as part of the tariff structure. In effect, it helps operators and over-the-top (OTT) players to further monetise consumer demand for popular applications on mobile devices.
- This report aims to analyse the opportunities that ABP creates for operators and vendors by:
- assessing the benefits of launching ABP for operators and OTT service providers
- examining best practices from around the world and matching them to different consumer profiles and contexts
- investigating business models and partnerships between OTT service providers and operators
- analysing operator–vendor engagement and qualifying vendors’ solutions for ABP in case studies.
- The report also provides recommendations for operators, OTT players and vendors.

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