Research Notes

The business model for mobile broadband services has been invented

and the content industry has good possibilities to create a great deal of revenue over the coming years.?

Many people are talking about the mobile broadband market, what it looks like and how it will develop. At Strand Consult we have spent a great deal of time analysing this market and examining how operators and content providers can make money on developing, marketing and selling services. The solution is a business model that is very similar to the existing business model being used on the premium SMS market – a model where operators using an open garden strategy enable content providers to earn money by creating traffic in the operators’ networks.
We have named this model the BCAP model Broadband Content and Application Provider model. The whole idea is to give different content and service providers access to deliver services over the mobile operators’ networks -using the operators’ billing systems to invoice the services. This model is very similar to the model being used on the multibillion large mobile phone services market – a market that started with ring tones and logos and has since developed immensely.
Our report Show me the money – The future Business model for mobile Broadband describes how we believe the value added services market will develop from the mobile telephone market to mobile broadband and later to ordinary broadband. We believe that in the same way that there today is a business model for mobile services for mobile telephones, there will also be future business models for broadband services that launch in the mobile broadband universe and that thereafter spread to ordinary fixed line broadband  – we can already name the first operators that are currently implementing this model and it will only be a matter of time before they launch.
From an operator’s point of view, the model we have described has a number of advantages – advantages that we believe will quickly make this business model very popular and ensure the growth of the broadband services market. This will result in both operators and content providers seeing this as a win-win situation. The 10 largest advantages that we would like to emphasise are:
· The model is mature; operators and content providers have positive experiences from the mobile services market.
· The model will give both operators and content providers new revenue streams and thereby create growth.
· It is easy to develop and market services that run on PCs.
· The BCAP model enables operators to easily use their billing systems to charge payment for these new services.
· The operators can limit their CAPEX on platforms for the new services – the content providers will drive the services market.
· This is a no cure no pay model, giving operators more flexible OPEX.
· As services will be delivered across all types of networks, marketing costs will be limited.
· The model will create a dynamic market with many services, allowing customers to choose the best services.
· The structure for implementing regulation of this business model is in place and some of the experiences from the mobile services market can be reused.
· End-users do not need to learn how to use services on their PCs in the same way as they had to on their mobile telephones.
If you are interested in learning more about the mobile broadband market and how it will develop, please order Strand Consult’s new report Show me the money – The future Business model for mobile Broadband that examines in depth the mobile broadband market and the new revenue streams that operators can acquire on top of their current basic mobile broadband connection business. Selling flat rate mobile broadband is not good business – especially when traffic is growing and most operators are today actually using their voice revenue to subsidise their mobile broadband business.
We can now offer you the BCAP business model for FREE. Please fill out the form here: HERE and receive our free White Paper based on the research and analyses from our report Show me the money – The future Business model for mobile Broadband. You can also order a table of contents and additional information regarding this report about the mobile broadband market and the workshops we can deliver in connection with this unique report.
We are certain of one thing; there is no doubt that the BCAP model – or variations of this model – will be the model that will be used on the future value added services market on both mobile and fixed line broadband. It is a historical fact that a great deal of the mobile operators around the world are today using the business model that Strand Consult described back in 1998/1999 – a model that has become a gigantic global success and that has created many exciting companies that are helping mobile operators to increase traffic on their networks and their billing systems.
Order your free White Paper today and receive it tomorrow. HERE

Contact us to get a copy of the report

Request the report