In a mobile application ecosystem dominated by Over-the-Top (OTT) providers, mobile operators need to exploit new business models in ways to create value with them. One example of a Monetization use case promising a new business model is Sponsored Data. An early proponent among operators has been AT&T, who defines Sponsored Data as: “a service that enables companies to sponsor the data usage for specific content on behalf of eligible AT&T wireless customers [who] can browse, stream and enjoy content … without impacting their monthly data plan allowance.”
A year after launch, AT&T spokespersons remain upbeat about its Sponsored Data program, despite only signing up about 10 content partners. What are some of the services enabled? Liberty Mutual insurance customers, for example, can send their smartphone photos from accident claims up to the Liberty Mutual cloud, without incurring data charges from AT&T. Kingsoft gives users of its mobile office software sponsored access to file access and transfers. AT&T states that is sees great interest in Sponsored Data from a variety of developers and content owners, but that such a service based on a new business model will take time to establish itself.
Waving the Green Flag
Other operators are experimenting with the Sponsored Data business model. Customers of T-Mobile’s Music Freedom service can now stream all the music they want from the most popular streaming services without it counting against their 4G LTE data limits. Other operators offer similar sponsored Internet radio services such as Spotify and Pandora, or social media applications like Facebook. Read More »