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Introduction

This report provides analysis of Ovum’s recently published Global Carrier-Billing Forecast: 2017–22, examining market dynamics and future growth trends. Further to the forecast’s horizontal segmentation, Ovum has segmented the market into media verticals.

Highlights

  • Full transactional revenue derived from direct carrier billing (DCB) will grow at a far faster pace than that derived from mobile operators’ core services (data, SMS, and voice). It will also overtake SMS revenue in six years’ time.

Features and Benefits

  • Find out where growth will be concentrated over the next five years and the underlying factors shaping the market.
  • Find out what share of the global carrier billing revenue pie is accounted for by the videogames, digital music, and OTT premium video verticals.

Key questions answered

  • Where will growth will be concentrated over the next five years and which underlying factors are shaping the market?
  • What share of the global carrier billing revenue pie is accounted for by the videogames, digital music, and OTT premium video verticals?

Table of contents

Summary

  • In brief
  • Ovum view
  • Recommendations
  • Definitions

DCB delivers badly needed growth to MNOs but tightening margins keep revenue small

  • Faster growing than MNOs’ core revenue streams
  • Will overtake SMS revenue in six years
  • Falling margins leave MNOs with small change
  • Operator take is not shrinking
  • Revenue benefits beyond plain billing
  • Recommendations

Carrier billing will seize growing share of music and video but games will remain at its core

  • Combined carrier-billed games, music, and video revenue takes growing share
  • Music leads in carrier-billing penetration and video is the fastest growing segment
  • Games take biggest slice of carrier-billing revenue throughout
  • Recommendations

Market takes off again after hitting rock bottom five years ago, but growth areas are the least profitable

  • Recovering fortunes
  • What’s growing, what’s shrinking
  • Elusive sweet spot
  • PSMS increasingly dwarfed by DCB
  • Recommendations

Games retain dominance on the back of app stores and online PC games

  • Mobile browser-accessed games lose market share and value
  • App stores take over
  • Desktop browser games continue to yield growth
  • Console games struggle to take off
  • Declining margin, recovering market share
  • Recommendations

Music surges thanks to bundling and a little help from Apple’s carrier billing debut

  • Disappearing ringtones and downloads market
  • Bundling is dominant but has peaked
  • Softer bundles and Apple Music loosen bundling’s grip
  • Bundling’s shrinking share of music revenue
  • Apple’s carrier-billing debut boosts app stores’ contribution
  • iTunes and Apple Music also come into the picture
  • Fivefold growth but halving margin
  • Recommendations

Video soars as OTTs turn to carriers for distribution partnerships

  • Flurry of partnerships
  • Bundling is not the main focus
  • "Off-store" is the main center of activity
  • Video subscriptions top the non-gaming app store charts
  • Meteoric growth at cost of margin
  • Recommendations

"Others" media segment shrinks but finds some growth through bundling and app stores

  • Mixed bag of handset personalization, SMS alerts, apps, and antivirus bundles
  • Up-and-down growth curve
  • SMS alerts suffer from changing consumer habits and litigation but still have a role in emerging markets
  • Recommendations

Physical-goods segment finds greatest mileage in East Asia and via life covers in emerging markets

  • Barriers
  • Mostly about “soft” physical goods
  • Microinsurance will capture biggest slice
  • Ticketing is a vintage segment with continued growth
  • Mobile stamps are a shrinking opportunity
  • Japan and Korea push the boundaries
  • “Hard” physical-goods transactions are rare elsewhere
  • Recommendations

App stores hog the biggest market slice largely thanks to Google Play and Chinese indies

  • Apple disrupts Google and indies duopoly
  • Apple imposes tougher terms on operators
  • Barriers to emerging market rollouts
  • Crumbling OS app store rivals
  • Indie stores largely about China
  • DCB rollout plays catch-up with apps explosion
  • Recommendations

Appendix

Recommended Articles

  • Internet of Things

    IoT Viewpoints 2018

    IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.

    Topics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

  • Enterprise Services

    5G: Another technology in search of enterprise use cases

    By Evan Kirchheimer 26 Apr 2018

    Service provider interest in justifying 5G investment through its potential to open new revenue streams from the enterprise segment is growing ever greater.

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