Google’s decision to embrace AT&T’s Direct Carrier Billing for Android users is a clear win for consumers because they can purchase apps and charge them to their mobile phone bill. But the real story is what this move means for mobile operators.
For large operators with established storefronts (like AT&T), the tie-up with Google means an increase in revenue because the carrier has effectively (and wisely) positioned itself to perform billing on behalf of a third-party storefront (this strategy is also known as BOBO). And this is in addition to the carrier’s benefit from selling content on its own.
For smaller mobile operators or new entrants, BOBO also makes business sense. It allows them to capitalize on the app store craze (and sell apps) without having to invest in their own storefronts.
But BOBO is more than a smart strategy; it’s an approach analyst houses argue mobile operators must pursue if they want their piece of the $35 billion pie.
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Matt Anderson is Head of product marketing for Amdocs Interactive, a distinct business within Amdocs focused on Value Added Services, which is the world’s leading provider of digital commerce, Mobile Internet and personalization solutions. Matt has over 13 years experience bringing products to market in the telecommunications industry. Prior to joining Amdocs in 2008, he directed marketing for Nuance’s mobile business unit, focused on market development of speech activation applications in the mobile, navigation and automotive industries. Previously he launched the next generation of T9 at AOL Wireless and was responsible for managing mobile VAS offers at AT&T. Matt also founded a start-up in the telematics business and managed marketing and sales for one of the first wireless data networking companies. Matt has an MBA from the University of Washington. You can follow Matt on Twitter (@matt6156).
Disclaimer: Amdocs Interactive is an MSG client and supporter.