Next Generation Communications Blog

Sponsored Data Charging - Disrupting the Mobile Industry

By: Barbara Sampson, Senior Marketing Manager, Alcatel-Lucent

New Service Provider Revenue Monetization Model

Just as LTE has evolved to be the predominant technology for mobile broadband providers -- generating an average data volume per user of 168% higher than 3G data – so must the traditional charging model change. One charging model growing in popularity is Sponsored Data Charging. 

Sponsored Data Charging enables mobile subscribers to view, stream, and benefit from sponsored content and use applications over the mobile service provider’s network without that data usage coming out of their monthly plan. The data charges that a subscriber would pay for the sponsored content are paid instead by the third-party provider owning the content. Even more importantly, a subscriber can test out certain sponsored applications and features for a short time to determine whether to subscribe, without impacting monthly data-plan limits.

Not only is Sponsored Data Charging built for massive broadband usage from all kinds of connected devices, it also can support emerging technologies such as VoLTE and NFV. Key target industries include advertising, retail, media, entertainment, healthcare, and financial services.

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