About this weblog

What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Friday, June 20, 2014

Emerging Best Practice in Digital Commerce

Extract from the conclusions in the GSMA's guide to Emerging Best Practice in Digital Commerce for Mobile Network Operators, which I co-authored:  

"Minimise the risks for service providers: There are many different potential charging models, ranging from a one-off fee to regular rental fees to transaction-based fees. A success or transaction-based charging model, which is widely used for internet advertising, is likely to be popular with service providers, as it limits their risk – they only have to pay when their customers are actually making use of the digital commerce service. 

"Competition and regulation could also have an impact on business models. If internet-based digital brokers offer merchants and brands transaction/success-based fees, then mobile operators could come under pressure to offer a similar tariff structure. At the same time, regulation, particularly with respect to capping interchange fees, could limit the scope the banks and payment networks to pay digital commerce brokers transaction-based fees.

"In summary, MNOs need to simplify their approach in terms of business models and on-boarding of service providers. Only through these changes will they achieve scale and the mass uptake of services. Ultimately it will be the consumer and the market that drives innovation and uptake, with those service providers who deliver an excellent customer experience and safe, secure and simple services, winning the battle for customer’s loyalty." source: Emerging Best Practice in Digital Commerce for Mobile Network Operators

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