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Direct Carrier Billing Case Study

957 Words4 Pages

For communications service providers (CSPs) searching for new revenue streams, Direct Carrier Billing(DCB) opens the door of opportunity as it enables them to directly participate in the over-the-top(OTT) market by providing a payment option for consumers to charge their mobile phone bills. This also means that rather than competing with OTTs, complementing business relationships can be developed by CSPs. Consider these two scenarios- Mr. Mandela was enjoying his vacation in the Sahara desert and wanted to purchase a discounted book from an online store. However, he was hesitant to give his credit card details due to the fear of online frauds. He noticed an option for payment through his mobile operator and without further hesitation, quickly made the financial transaction, finding it the most secure option of payment as it did not require him to disclose his banking/debit/credit card details. Mr. John, a US businessman on a month long business trip to Russia wanted to make urgent Skype calls and needed Skype credits. He was happy to learn that his Russian CSP has the facility to charge the Skype credits to his phone bill. Direct Carrier Billing solution is need of the hour as OTT players such as Apple, Netflix and other App platform players have created services that are delivered directly to consumers, …show more content…

Mobile subscribers can therefore charge apps, games and in-app purchases to their phone bill, eliminating the need for a debit/credit card. Realizing the current and future potential, companies have already started investing in enabling technologies. Samsung announced buying mobile payment company LoopPay and Google acquired US mobile payments company Softcard, a JV supported by Verizon Wireless, AT&T Mobility and T-Mobile, promising to pre-install Google Wallet on Android phones sold by the

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