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App store carrier billing: Transforming subscriber behavior

App store carrier billing: Transforming subscriber behavior

Subscribers using carrier billing in Google Play spend more across all operator services.

It is widely believed that offering carrier billing for third party services cannibalizes operator revenues from traditional voice, SMS and data services, because subscribers have a limited budget to spend on their phone - a fixed wallet size.

To investigate this belief in detail, Bango and Belgian operator Proximus partnered to analyze pre-paid subscribers using Android smartphones, comparing those using carrier billing to purchase from Google Play with those who do not, focusing in particular on pre-paid subscribers.

Bango and Proximus discovered that contrary to common belief:

  1. adding Direct Carrier Billing (DCB) to an app store does not cannibalize end user spending on mobile data, voice and SMS services
  2. pre-paid subscribers that pay using their mobile phone bill in Google Play do not have a fixed wallet size. They maintain the same level of spending on data, voice and SMS services and spend additional money on app store content

Download the report to view the analysis, findings and conclusions.

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