2015/03/24 Sponsored Data to Expand Mobile Connectivity to New Consumers, Cars, Wearables, IoT
Opera Software, DataMi, AsiaInfo, Telenor, Airtel, Millicom and Facebook's Internet.org Enable Digital On-Ramp in Emerging MarketsBoston, MA - March 12, 2015 – Sponsored data provides a useful business model for bringing mobile data to new users in emerging markets and to new device types —according to the Strategy Analytics Wireless Operator Strategies (WOS) service report, “Measuring the Success of Sponsored Data”. With sponsored data business models, third party companies like consumer brands, web stores or enterprises can pay the mobile operator for data used by consumers or employees to access their content in a toll-free model, or can offer data rewards like loyalty points.
Key findings from the report:
- Sponsored data use cases gaining traction today in emerging markets like Brazil, China, India, Indonesia and Nigeria range from advertising, free access to online commerce apps, games and app stores, free access for banking apps, to support for bring-your-own-device (BYOD) by enterprises, education and healthcare.
- Opera Software, which recently won an award for its web pass and sponsored web pass in the category “Best Mobile Product, Initiative or Service in Emerging Markets” in the Global Mobile Awards at MWC 2015, has supported successful sponsored data campaigns with ten mobile operators in emerging markets.
- China has been a particularly strong market for sponsored data, with AsiaInfo a key platform vendor supporting the market growth. China Telecom, China Mobile, China Unicom are all supporting sponsored data offers, with sponsors like Alibaba and Baidu focusing on growing traffic and users to their online stores and apps.
- Leading operators evaluating or launching sponsored data include AT&T, Airtel, Millicom, Telefonica, Telenor, Telkomsel, TIM Brasil and Vodafone; Facebook’s Internet.org is looking to expand its partnerships with operators to create a free data on-ramp to the mobile Internet in emerging markets.
Susan Welsh de Grimaldo, Director, Wireless Operator Strategies said: “Wearables, connected car and IoT – these device categories will definitely benefit from new thinking on how data connectivity is offered. Sponsors can be the device makers or other brands, and free data use can even be embedded in specific aps for the devices. People will not have to worry about setting up a wireless account for each new device, and brands like insurance companies, services, and sports drinks will have a new way to reach their target customers.”
Phil Kendall, Executive Director, Wireless Operator Strategies, commented: “Operators are starting small to prove the value of sponsored data use cases for their particular market and find brands with interest. Momentum will build in 2015 as operators and sponsors test what works best and build their strategies for sponsored data. For operators, this needs to be part of a broader move to upgrade systems to support more flexible, agile, and scalable new business models with partners in over-the-top (OTT) servcies and the broader ecosystem as mobility becomes more central to consumers and enterprises alike.”
Source: Strategy Analytics
