Direct Carrier Billing (DCB) can Galvanize the Mobile Vertical Markets, finds TeleResearch Labs

Mobile network operators aren’t paying close attention to leverage DCB in mobile vertical markets. TeleResearch Labs examines many such hot opportunities in adjunct telecom markets for operators in its latest report: Vertical & Horizontal Worlds of Mobile.

As mobile payments is one of the broadest areas of horizontal potential, US-based telecom research company TeleResearch Labs strongly encourage operators to try incorporating direct carrier billing (DCB) – for physical goods. Though there are a few cases where it has started but operators have not yet focused on it. San Francisco-based company Boku, which specialises in direct carrier billing solutions, has entered into partnerships with the UK's three main telcos for supporting DCB payments for items such as magazines and bus tickets, and is looking for expanding into the food industry.

While operators do not foresee DCB in developed markets where the focus currently is on NFC/ mobile wallets, this payment method could be explored in emerging markets where millions of people don't possess credit/ debit cards and don't even have bank accounts. Telcos charge upwards of 25% of the cost of items purchased via DCB, and they could do worse than lowering this amount so as to expand scale of such payments. Moreover, this platform can also assist operators in competing with incumbent e-commerce/ m-commerce companies such as Amazon.

If only, mobile operators work with app developers facilitating DCB and the merchants to bring down the rates they charge, as has been done in South Korea, humongous revenues are in store as they would compete head-on with credit card companies. It would be additionally one more way to lure prepaid customers to sign up for postpaid contracts, especially in markets such as India, Pakistan, and countries in Africa.

For more strategical guidelines in mobile vertical markets, visit:http://www.teleresearchlabs.com/view_document/73-vertical-a-horizontal-worlds-of-mobilehttp://www.teleresearchlabs.com/Email: pr@teleresearchlabs.comPhone: +1   202-506-8078