Feeds

Pay to play: the killer mobile app

But sort out micro-payments first

  • alert
  • submit to reddit

SANS - Survey on application security programs

Network gaming provides opportunities for networking operators to boost data traffic and should become a mainstay of operators' plans to boost revenue and sign up new subscribers.

That's the conclusion of a report on the mobile gaming market by industry analysts Frost & Sullivan which reckons the industry segment generated revenues of $436.4 million last. Steady growth for messaging-based, web-based and downloadable mobile gaming could push total revenues to $9.34 billion in 2008, it reckons.

However this optimistic prediction is based on a number of factors, not least the successful implementation of micro-billing systems. Operators will also have to attract gamers of the attractions of pay to play.

Consumers are wary of making over-the-air payments with credit cards for mobile services, so network operators will need to use billing-on-behalf-of-others (BOBO - yes, that's what Frost calls it) techniques to collect revenues for content providers.

"Most network operators in North America and Europe will have to work hard to implement micro-billing systems for third-party content," said Frost research analyst Kshitij Moghe. "Although they recognise the importance of the BOBO model, few had the mechanism in place at the end of 2001."

Until these secure systems are installed, consumers are likely to stay away from mobile gaming. Naturally, operators will have to convince them to pay to play.

"Network operators will face an uphill challenge in getting consumers to pay for premium mobile content such as games," says Moghe. "The Internet model of free content has become well engraved in consumer attitudes, especially in North America."

Many Internet content providers have shown how difficult it can be to persuade users to pay for information and entertainment services. The question is whether mobile operators will fare any better.

Since the launch of the mobile Internet, network operators have given away content for free, requiring customers to pay only for airtime. To convince users to pay for content, operators will have to make it compelling and facilitate easy billing. ®

Related Stories

Coming soon: mobile phone multi player gaming via GPRS
Cellphone giants launch mobile gaming initiative
Mobile startups dismiss 3G - for now

3 Big data security analytics techniques

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.