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In this fourth installment of the Six Degrees of Mobile Data Plan Innovation blog series, Alcatel-Lucent’s Rich Crowe examines application-based data plans. These plans let mobile subscribers use specific applications without consuming their data allowance.
Removing the worry from mobile application use
How would you like to use your favorite mobile applications without having to worry about going over your data limit and paying overage fees? That’s the idea behind application-based data plans. You pay a monthly fee to use one or more specific applications as much as you want. The data consumed by these applications doesn’t count against your data plan. In some cases, your mobile network operator may decide to make selected applications available without impacting your data plan in exchange for a very nominal fee.
Two categories of applications are particularly well suited to application-based pricing. The first are data-hungry applications, like video and multimedia. Today, some consumers use these applications sparingly because they fear going over data limits and incurring overage charges. The second includes core applications that don’t consume much data, such as text-only e-mail or social networking. These applications may be used to introduce subscribers to the world of mobile data.
By Cassidy Shield, Head of Global Solutions Marketing for Content, Cloud, and Communications, Alcatel-Lucent
When consumers start buying data where they use it, the possibilities for consumption multiply.
Mobile is the growth engine of the communications industry, yet the way consumers purchase, discover, and engage with their data plan is in a store, on a website, or, even more archaically, via calling a call center. This is fundamentally backward, but it's also a clear wireless operator opportunity.
The opportunity lies in moving the point of sale (POS) to the smartphone or tablet itself, and it starts with a mobile application. With mobile data growing by leaps and bounds, operators have been grappling with how to manage and monetize the influx. Their conversations so far have centered on real-time charging, policy control, and personalization to transform how they bill, but there's been very little action on how to make these complex processes simple for consumers.