Next Gen Mobile Billing Explained.
Billing platforms are the engines that power the ship of mobile commerce. One of the leaders in this sector is Qpass.
I interviewed Kenneth Parkinson, Director of Business Development
for Qpass EMEA to get the low down on their product and his thoughts on
the direction of the mobile industry.
In a nutshell, please can you tell my readers what your company does?
Qpass provides mobile commerce software to mobile operators
including Cingular, Nextel, Alltel, Boost Mobile and Dobson. These
customers utilise Qpass[base '] Prosperity Series software as an overlay to
existing business systems to efficiently manage mobile commerce payment
and settlement, content partner relationships, service bundle creation
and customer care in mobile or Wi-Fi networks. With more than 75
million subscribers using our platform today, we are able to deliver
$25M of revenue for our mobile operator customers in a single month.
And why that[base ']s important?
It is estimated that the m-commerce market will be worth o32 billion
by 2009 (source: Juniper Research). Prosperity Series is the only
comprehensive services management platform on the market in Europe
today, enabling MNOs to efficiently manage mobile content and services
to take advantage of the great business opportunity offered by mobile
commerce.
Do you think MNO[base ']s lack of adequate billing systems is holding
the content industry back and if so, do you have any evidence to
support that?
We conducted a survey in September 2004 of mobile content providers
who operate in Europe. The survey revealed that inadequate business
systems are holding back the development of mobile commerce amongst
mobile phone users in Europe.
The study found that 85 per cent of mobile content providers believe
that European MNOs are constrained by poor or inadequate systems for
mobile commerce. Additionally, 70 per cent of mobile content providers
reported that they deemed this situation unacceptable and reported that
European MNOs have inadequate business systems compared to MNOs in
other geographical regions.
Mobile commerce content providers jointly ranked time-to-market for
new content and the inability to link seamlessly into MNO billing
systems as the key issues holding back consumer adoption of m-commerce
and future revenue growth.
An inability to support a flexible pricing model and a lack of
real-time sales analysis data from MNOs were jointly ranked as the
second issue holding back consumer adoption and revenue growth.
Where do you see the big growth areas being for mobile content?
Any services which will drive revenue from outside of the current
focus areas of ringtones and logos. Thus the trends that we are seeing
in the US where we are able to analyze data for more than 50% of the
addressable subscriber base, show us that today the fastest grow area
is in games.
We do however believe that as the mobile phone moves to also become
the mobile music device; music will be another growth area driven by
the same youth sector. In addition we have been approached by a number
of operators who are interested in developing a number of enterprise
specific applications in the future.
Why do you think it is that MNO[base ']s have been slow to adopt next
generation billing? Surely, it[base ']s their lifeblood [^] like a supermarket
not installing tills?
There are several reasons for this, the main one being that MNOs
were able to piece together systems to manage functions such as pSMS
efficiently for several years.
Now that GPRS handsets are widely available, as well as 3G networks,
the opportunities for consumers to download mobile content and utilise
their phones as payment mechanisms are greater than ever before.
However there is an obvious reluctance for the MNOs to upgrade billing
systems since this type of project can typically take between 5 to 10
years to complete and the cost is similarly high.
That is the advantage of the Qpass Prosperity Series software
solution in that it acts as an overlay to existing Billing and OSS
systems. Thus even if a MNO has 19 different billing systems (as one of
our customers did have!) the interface for content providers and other
parties is common at the Qpass solution layer.
One reason why P2P music file sharing exploded was that the
record industry refused to consider a legitimate sales channel via the
web. Do you see any parallels with mobile content? In other words, if
MNO[base ']s don[base ']t provide what people want, will they get it underground?
There is a great similarity between these two [base "]channels[per thou], since they
are both driven by the market group in the main. Operators are going to
need to be careful not to disintermediate themselves from the value
chain and simply become a [base "]pipe[per thou] allowing delivery of digital goods.
This in some way has been already seen in Europe through the
introduction of Premium SMS, where the user has greater freedom to
choose from where he would like to buy his goods. This will move from a
national solution to an international solution with the introduction of
Simpay next year.
Make three predictions for the next for the mobile industry for the next 3 years.
a) Data services revenue for mobile operators will far outstrip the revenues associated with traditional voice calls.
b) Vodafone will make a more recognisable footprint in the US.
c) I will still not be able to maintain a 3G connection while using
my data-card in my PC on the Eurostar train journey from London to
Paris!
Who do you most admire in the mobile industry?
I admire the many mobile content providers in the industry that are
producing wonderfully creative games, ringtones and other downloads.
They often operate on the frontiers of the industry and are helping to
drive it forward.
Who[base ']s the most influential person in mobile today?
There is no, one single person I could identify as the most
influential although any of the current CEO[base ']s of the top six European
operators would be good candidates. I will be keeping my eye on Stelios
as he launches his new MVNO and be interested to see if he can succeed
in the mobile space.
Will Apple launch an iPhone?
If they do, I think it will probably be the best looking and most
usable mobile phone on the market (and will definitely be on my
Christmas list!).
[The Mobile Technology Weblog]
6:34:08 PM
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