M-payment—an open book: globally agreed m-payment standards are a long way off but do we need them anyway? - The Wireless Business Model

Telecommunications International, Oct, 2002 by Matthew Secker

He further argues that content providers today -- whether they're selling news, sports games, dating or chat -- should be happy with this solution. "Paybox actively encourages content providers as we only charge merchants between 2 per cent and 5 per cent (which is in-line with i-Mode), whereas operators want to charge much more than that," he says. "For example, mmO2 charges the provider of logos and ring-tones 30 per cent for its premium rate phone call service.

Nevertheless, the question remains as to whether operators would be keen to encourage a solution (such as Paybox) due to the effect that it would have on their ARPU performance. But Shrier is adamant that there is plenty of room for operators to make money in this scenario and Paybox is presently in active consultation with all the leading telcos in Europe so that it can offer this solution to their customers as a cobranded m-payment service.

Fig. 1

Consumer spending an content 2001-2006

Projected consumer spending in [euro]m


2001    590    252
2002    860    337
2003  1,407    490
2004  2,233    737
2005  2,915  1,101
2006  3,280  1,686

PC Internet 35% music 26% adult 22% games

Mobile Ring tones Logos News Adult Messaging Sport Competitions

Source: Jupiter MMXI

Note: Table made from line graph

Matthew Secker, features editor

(msecker@horizonhouse.uk)