Operators must act to monetize mobile apps

Recent findings from Canalys highlight the massive revenue potential surrounding the sale of apps, in-app purchases and subscriptions across smartphones and tablets. According to the analyst house, combined sales will reach $14.1 billion (€9.7 billion) next year and will top $36.7 billion by 2015.
 
These findings demonstrate the very real role applications can play in helping operators to rebalance and expand their revenue opportunities. With the number of mobile application downloads expected to top 17 billion this year, communications service providers (CSPs) are realizing the potential of apps by engaging positively in industry initiatives such as the Wholesale Application Community (WAC), and by making individual investments to ensure maximum potential coverage for the opportunity.
 
Applications have real potential to help drive revenue, but equally importantly, to improve the consumer experience and user perception of their service providers by offering innovation that is currently delivered by third parties. Better user experience will, in turn, bolster customer loyalty and provide a platform for building even more innovative applications.
 
CSPs will also be able to generate more revenue by efficiently charging third party developers and enterprises that wish to use their networks for distribution.
 
However, CSPs must ensure they take advantage of the opportunity to grow revenues while increasing customer service and loyalty. To do so, they need to implement the correct billing and back-end systems while joining appropriate industry initiatives.
 
Gordon Rawling is senior director of regional marketing for EMEA at Oracle Communications. For more information, visit www.oracle.com

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