Is direct carrier billing the ‘elixir’ that Digital merchants need?

Narrowing price gaps between feature phones and smartphones, and the launch of low-end, cost competitive devices led to the fast pace of smartphone adoption by consumers. The adoption rate has buoyed to the extent of increasing smartphone sales in the country three-fold to over 44 million in 2013. This resulted in the emergence of app stores as the most sought-after channel for digital merchants replacing Mobile Network Operator (MNOs) portals, which were the primary source of revenue for most merchants.

With the introduction of app stores primarily on smartphones, the discovery of content moved swiftly from MNO’s on-deck portal to App stores market place.

Though most app stores are able to drive significant downloads, but true monetization still eludes the ‘long tail’ developers unless these developers can spend significantly on mobile advertising to acquire customers.

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About the author: This article is written by Krishna Tammireddy, CSO of JunoTele, who has over 15 years of experience in Mobile VAS services.

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