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Six Degrees of Mobile Data Plan Innovation tag

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Third Party Pays Mobile Data Plans Hit the Market

Alcatel-Lucent’s Rich Crowe continues the dialogue on the Six Degrees of Mobile Data Plan Innovation by examining recent market developments in third party pays mobile data.

Syntonic Wireless™ is bringing sponsored data to AT&T customers. The Seattle-based mobile services company’s new Syntonic Sponsored Content StoreSM, creates an open marketplace where AT&T’s iOS and Android customers can find and consume free or premium content without consuming their data plans. Integrated with AT&T’s Sponsored DataSM service, the Syntonic Sponsored Content Store operates on the third party pays concept, one of the six degrees of mobile data plan innovation.

When it announced Sponsored Data in January 2014, AT&T offered a vision for a service that would give sponsors new ways to engage with customers and employees. Sponsors could come from industries as diverse as healthcare, retail, media and entertainment, and financial services. They could use sponsored data in a variety of different ways, including:

Shared Data Plans: A Tool for Attracting and Retaining Subscribers

Alcatel-Lucent’s Rich Crowe opens a new chapter of the Six Degrees of Mobile Data Plan Innovation blog series by examining consumer interest in shared data plans.

Shared data plans have become popular with mobile operators. Today, 19 of the world’s 25 largest mobile operators by subscriber base size[1] offer data-sharing options. Many others are following suit and offering subscribers the ability to connect several users or devices to the same pool of mobile data.

For operators, the addition of shared data plans is about clearing new paths to market expansion, subscriber stickiness and bottom-line growth. But what do mobile consumers think of shared data? What factors make them more or less likely to embrace it? And what impact does it have on whether they stick with a mobile operator?

COMING SOON TO A MOBILE OPERATOR NEAR YOU: THE SIX DEGREES OF MOBILE DATA PLAN INNOVATION

 

With the final entry in the Six Degrees of Mobile Data Plan Innovation blog series, Alcatel-Lucent’s
Rich Crowe
(@rhcrowe) looks at how mobile operators can use (and are already using) the six degrees of mobile data plan innovation to capture and deliver more value.

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The Value of a Gigabyte

What does a gigabyte mean to you? Is it just a unit of data or something concrete, like a movie or 250 songs? Maybe it’s a means to share news and pictures and stay connected. These are things with value. If you’ve got a mobile device, a gigabyte offers the freedom to take your movies, songs or connections with you anywhere you go. A mobile gigabyte can even deliver peace of mind by supporting applications that tell you where you are and how to get where you’re going at any given moment. This flexibility is also valuable.

Are some gigabytes worth more than others? Are gigabytes delivered in a fast and uninterrupted stream worth more than those that come slower with pauses and buffering? What about gigabytes that can be shared with others?

Yes, gigabytes have value. How much value depends on their quality and the way each individual uses them. It takes innovation to deliver and capture that value!

 

Every mobile network operator wants to get more value from mobile data. But today’s unlimited and basic tiered data plans ignore the value that mobile data offers to subscribers. By offering a set amount of data for a set price, operators make mobile data a commodity and encourage consumers to shop for the lowest price per gigabyte. To capture the true value of mobile data, operators need to change the way they think about – and define business models for – mobile data services.

For mobile operators, success– both in terms of customer satisfaction and profitability – means recognizing that mobile data delivers tangible value to customers. Just as important, it means understanding that individual customers value mobile data based on their own interests and the way they use their services. Traditional mobile data plans can’t deliver success on these terms. Operators need new and compelling plans that can reinforce the value of mobile data and better meet the unique needs of each customer.

The Six Degrees of Mobile Data Plan Innovation blog series introduced six different ways for mobile operators to build highly personalized pricing options and showcase the value of mobile data. These innovations will help operators offer differentiated service levels and present more value-based options to subscribers and businesses. The six innovations are:

  1. Service level-based plans: Offer premium services that deliver a higher speed or QoS.
  2. Shared data plans: Let several users or devices connect to and share a common pool of mobile data.
  3. Application-based plans: For a monthly fee, allow users to consume data with selected applications without having the usage count against their monthly data plans.
  4. Third party pays plans: Offer toll-free access to specific content, with the content provider or another business paying for the data subscribers use to consume the content.
  5. Loyalty-based plans: Reward loyal customers with mobile data and partner with retailers to include mobile data in their loyalty plans.
  6. Capacity-based plans: Shift traffic to off peak, create services to consume off-peak capacity, and monetize peak data traffic.

Six Degrees of Mobile Data Plan Innovation: Capacity-Based Plans

In this seventh installment of the Six Degrees of Mobile Data Plan Innovation blog series, Alcatel-Lucent’s Rich Crowe (@rhcrowe) looks at capacity-based mobile data plans. With capacity-based plans, subscribers are encouraged to use the network when it has spare capacity or to pay a little bit more as the network nears its capacity. Mobile operators can use these plans to reduce network congestion, monetize peak-time data traffic, and better manage the investment required to address continually growing demand for data.

Congested networks and wasted capacity

Fast-rising mobile data traffic – driven by increasing consumption of real-time entertainment on the go – is putting a strain on mobile networks (see Figure 1 as an example). Mobile network operators are working hard to increase capacity so they can meet peak demand and keep subscribers satisfied. Adding capacity can help ensure that users don’t encounter a slow or unresponsive network during mobile data traffic peaks. But it’s an expensive solution that means even more capacity goes unused at off-peak times. Capacity-based plans are an excellent way to slow network growth requirements while monetizing available capacity.

Six Degrees of Mobile Data Plan Innovation: Loyalty-Based Plans

In this sixth installment of the Six Degrees of Mobile Data Plan Innovation blog series, Alcatel-Lucent’s Rich Crowe (@rhcrowe) examines loyalty-based mobile data plans. With loyalty-based plans, subscribers get rewards for keeping up active relationships with mobile network operators. Operators can use these plans as the basis for retaining subscribers, encouraging increased spending and data usage, or forming mutually profitable partnerships with retailers.

RAISE the bar

Airlines offer them. So do hotels, credit card companies and, yes, mobile network operators. “They” are loyalty programs that reward customers for making frequent purchases. Airlines, hotels and credit cards tend to stick to the script, offering free flights, nights and merchandise. Mobile network operators have no such script. Today, operators reward loyal customers with voice minutes, text messages, accessories, ringtones, discounted device upgrades or even dining, shopping, travel and spa services. As mobile network operators’ business models grow more data-centric, the creative use of mobile data will become essential to ensuring that their loyalty-based plans remain relevant.

Six Degrees of Mobile Data Plan Innovation: Third Party Pays

In this fifth installment of the Six Degrees of Mobile Data Plan Innovation blog series, Alcatel-Lucent’s Rich Crowe examines third party pays mobile data plans. With third party pays plans, application and content providers pay mobile network operators for the data that subscribers use in consuming their content.

Data on the house!

Have you ever enjoyed a great meal at a restaurant and then been told that it’s on the house? It’s a wonderful feeling! Third party pays mobile data plans bring that same feeling to the mobile experience. You consume mobile content and someone else — the content provider or another business — pays your mobile network operator for the data you used. It doesn’t count toward your monthly allocation.

Today’s business model favors application and content providers. They provide the content and consumers cover the mobile data bill through their data plans. So why would a content provider pay for mobile data? The reason is simple: If the provider’s content consumes a lot of data, mobile consumers may access it sparingly or not at all to save precious megabytes. This behavior may be even more pronounced toward the end of the month, as consumers approach data plan limits.

Six Degrees of Mobile Data Plan Innovation: Third Party Pays

In this fifth installment of the Six Degrees of Mobile Data Plan Innovation blog series, Alcatel-Lucent’s Rich Crowe examines third party pays mobile data plans. With third party pays plans, application and content providers pay mobile network operators for the data that subscribers use in consuming their content.

Data on the house!

Have you ever enjoyed a great meal at a restaurant and then been told that it’s on the house? It’s a wonderful feeling! Third party pays mobile data plans bring that same feeling to the mobile experience. You consume mobile content and someone else — the content provider or another business — pays your mobile network operator for the data you used. It doesn’t count toward your monthly allocation.

Today’s business model favors application and content providers. They provide the content and consumers cover the mobile data bill through their data plans. So why would a content provider pay for mobile data? The reason is simple: If the provider’s content consumes a lot of data, mobile consumers may access it sparingly or not at all to save precious megabytes. This behavior may be even more pronounced toward the end of the month, as consumers approach data plan limits.

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