Show me the money

– a report on revenue models and revenue sharing on SMS, WAP/GPRS and UMTS based mobile services

Attention has turned to revenue and revenue sharing – and with good reason. Mobile operators are looking for revenue models, which are able to both ensure a return on the large GPRS and UMTS investments, and make it attractive for content providers to develop and market mobile services.

This new report is designed specifically to help operators and content providers meet this strategic challenge.

As a first step, the report maps and describes the strategic differences between the mobile and the traditional Internet. Secondly, it describes the forces driving the market for mobile services. As a third step, the report analyses both existing and future technologies in terms of their readiness for commercial use. In short: we analyse and describe the development of different technologies and consider the importance of these developments for both operators, terminal producers and content providers in relations to designing successful revenue and revenue sharing models.

A catalogue of knowledge

In the report, we critically evaluate 28 mobile operators worldwide and their different choice of revenue sharing models. We describe each model and evaluate them from the point of view of both the operators themselves and content providers. We describe how operators share revenue and look at the contractual costs incurred by content providers. We look at the consequences of these contractual costs on the supply of services.

In the report, we also look at the pros and cons of the different models in relations to any country specific conditions. The report also describes the development from SMS via WAP/GPRS to UMTS and provides examples of specific revenue and revenue sharing models related to WAP/GPRS and UMTS.

Future revenue models will be different from today

Ever since Norwegian operators launched revenue sharing on SMS, many operators have copied the Norwegian model – often without considering if it is the right model for their market. The report provides input to operators looking to implement a more intelligent model. Models, which work to develop both their business case and take into consideration the technological development and the demand for increased revenue.

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