Mobile Operators can sell their bandwidth to advertisers. This New Business Model is the same old 1950's TV business model. (Same model as Radio, Newspaper, Magazines, and Google, Yahoo, Facebook, etc.) Same as "caller pay".
Why not? The MNO's dumb pipe is not dumb. It has all kinds of information about the subscriber. They can do Deep Packet Inspection (DPI), super granular billing, traffic routing and shaping, and more.
1 in 5 users does not have DSL. Surely these are the younger users. Youth defines the future.
Win-win-win: 1) Advertisers target their audience more precisely. Thus each eye-ball/impression they pay for, is worth more. (Mobile bits cost more to deliver.) 2) Users get free entertainment (plus the ads) without over subscribing to bundled mobile data plans; or paying painful overage charges. 3) MNOs get more revenue. Tada FINALLY they see increasing ARPU. The advertisers subsidize the massive upgrades needed to support the massive growth in Packet data.
What else? Just like TV (HSN) or catalogs, the user can shop on line. But unlike HSN, the user controls the experience. The on-line merchandiser can offer much smarter catalogs, gender or age specific if the viewer is the cell phone user.
More? Time of day. Another old idea. Phone companies used to vary rate plans based on time of day, day of week. Users hate this because they don't like to manage these details. Merchandisers can use time-based charges to maximize their ROI. Or, MNO can use dynamic bidding like Google does.
Friday, July 23, 2010
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