Monetising Mobile Data: New Service & Revenue Models
2014.12.17   |   36 pages   |   Operations and Management

Pippa Walton



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Mobile data is a key focus for all MNOs in markets around the world as data usage continues its inexorable rise. The days of unlimited data are now in the past as operators seek to persuade their customers to pay a realistic price for the data they use. Although data revenues are increasing and represent an ever higher proportion of ARPU, blended ARPU is still falling as the prices for voice services are decreasing and regulatory impacts such as cuts in roaming and MTRs take their toll.

Operators now face a major challenge in deploying successful pricing strategies for new data services, whilst also optimising service uptake. They need to develop strategies to optimise tariffs and monetise data services as consumer use of mobile data grows. The drive to mass adoption of data services could also lead to price erosion if the introduction of new tariffs and services is not carefully handled.

The challenge is further complicated by the need to address vertical markets and regulatory issues including net neutrality and data privacy.

Operators must traverse these minefields at the same time as introducing new business models that focus in partnerships and upstream as well as downstream revenue sources.

This report looks at examples of innovative mobile data services and business models that are being developed by MNOs and their partners. It concludes with a set of recommendations that should be given consideration by any operator wishing to deliver revenue generative mobile data services in the future.


Companies: Telefonica, Telefonica Dynamic Insights, O2, Verizon, Precison Market Insights, Tesla, Amazon, AT&T Sponsored Data, BlueVia, AT&T Drive Studio, OnStar, Audi, Swisscom, Tapit, GfK, Facebook, T-Mobile USA, Rhapsody, Syntonic

Countries: USA, UK, Switzerland, Chile

Keywords: social networks, M2M, Dynamic Insights, data privacy, M2M World Alliance, shared data plans, big data, music streaming, mobile data, connected car, zero-rated data, customer data, m-health, smart cities, Net neutrality, connected home, in-vehicle telematics, m-education, LTE,

Table of Contents
1 Overview 1
2 Introduction 2
2.1 Background to the Report 2
2.2 Report Content 4
2.3 Currency and Conversions 4
2.4 Further Questions and Feedback 5
3 Mobile Network Data Analytics 6
3.1 Introduction 6
3.2 Customer Data & Privacy Issues 7
3.3 Telefonica Dynamic Insights 8
3.3.1 Smart Steps Global Platform 8
3.3.2 Telefonica's Approach to Consumer Privacy 10
3.4 Precision Market Insights from Verizon 10
4 Zero-rated Data 13
4.1 Upstream Funding for Data Traffic 13
4.2 Social Networking 14
4.3 Tesla 15
4.4 Amazon 15
4.5 Music Services 16
4.6 AT&T Sponsored Data 18
4.7 Net Neutrality 22
5 M2M Services 24
5.1 Introduction 24
5.2 The Connected Home 24
5.3 The Connected Car 24
5.4 Shared Data Plans 28
6 Operator Collaborations 30
6.1 Introduction 30
6.2 BlueVia 30
6.3 Tapit 31
6.4 The M2M World Alliance 32
7 Key Findings 34
8 Recommendations 36
  Appendix - Feedback Questions 37

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