Tiered service plans are equitable for customers and operators alike but the widespread use of data tiers and monthly data entitlements has made customers increasingly aware of how much data they are consuming. As a result when users are approaching their data limit many significantly alter their usage patterns to ensure that they don’t use up their data allocation. Bandwidth heavy video applications like YouTube, Netflix and ESPN in particular, suffer from reduced customer visits due to mobile data caps and in turn reductions in advertising revenue. Sponsored Data allows the ‘whitelisting’ of certain services so that usage is not counted towards the user’s data allowance and is instead paid by the app publisher or content provider.
How Sponsored Data Works
Two sided business model that benefits both the operator and the content provider
Wholesale models which allow partners or sponsors to pay for data usage is an innovative way of growing overall mobile revenue. The sponsored data model ensures that the benefits derived are not just the preserve of the mobile operator. The content provider would pay an operator to guarantee that people viewing their website or app, wouldn’t have that usage counted toward their monthly data caps. For content providers like YouTube or ESPN that generate revenue from showing ads on mobile phones and tablets, the new approach could ensure that carriers’ monthly data caps aren’t artificially restricting the potential of their business.
Integrated PCC – The Foundation for the Sponsored Data Model
Integrated policy and charging systems are essential to ensure that specific policy rules and real-time rating are in place to enforce the terms of the sponsored data model. Openet Policy Manager can monitor how content is being used down to the subscriber level and apply specific business rules to the content being consumed. Tight integration of policy and charging is required to allocate and apply policy and charging rules dynamically and to ensure that partner usage is whitelisted from other data usage.