How to Avoid Premium SMS and Minimise Data Charges
- Problem Description
- Premium SMS
- Data Charges
- Credit/Debit Cards
The report starts by reviewing the direct-to-consumer (D2C) mobile content business model. The value chain is described and the report shows how revenue collected from the user by the mobile operator via PSMS is distributed to the various players.
An alternative strategy is then described that can be used to dramatically improve the revenue payout in favour of content and retail brands.
Next, the costs of downloading music and video files from third party mobile sites is stated for all 5 UK operators by reviewing the current pricing plans offered to prepay and postpay consumers.
Two commercial models are then explained which would dramatically reduce the data charges incurred by consumers, thereby making the download of large files viable.
The first model would apply for branded players that want to develop their own end-to-end solution while the second model could be implemented as a mobile content delivery and payment platform, optimised for D2C, which would be attractive to companies that are happy use an off-the-shelf solution. Outline technical solutions are provided for both models.
The pros and cons of both models are identified for all players in the value chain including content owners, mobile operators, mobile aggregators and content retailers.
MULTI-PLATFORM CONTENT DISTRIBUTION
DIRECT TO CONSUMER
THE D2C MODEL
Problem 1: Data Charges
Cost Impact on User
On-portal vs. Off-portal Data Pricing
Solutions: Data Charges
1. Flat Rate Data Plans
2. Wholesale Data
Problem 2: Premium SMS
Out payments 15
Poor Value 16
Low Transaction Values 17
Solutions: Premium SMS
Across the board, digital media retail brands and content providers are unhappy with the commercial models used to deliver mobile content directly to consumers. The frustrations are the same everywhere: PSMS outpayments from mobile operators are too low and standard data charges make the delivery of heavyweight music and video files too expensive for the user. This report describes solutions for both of these problems.