Direct Operator Billing will emerge as PRS dies in USA

Bango reckons that DOB is the only way out for MNOs

For reasons better known to themselves, the leading US mobile network operators [MNOs] recently decided to drop Premium Rate SMS (PRS) which is known on the other side of the Atlantic as PSMS. See our previous story ‘US MNOs move to ban Premium Rate SMS services. That’s despite the fact that 35 million US mobile phone owners used PRS/PSMS to make a purchase in one month alone in 2013. So, how can MNOsĀ  and app stores capitalise on this gaping chasm in mobile commerce? According to nobile billing specialist, Bango, the answer is Direct Operator Billing (DOB) or Direct Carrier Billing as it is known Stateside.

A report – The fall of Premium SMS paves the way for Direct Operator Billing dominance‘ – commissioned by Bango from Yankee Group argues that Direct Operator Billing will continue to emerge as the superior mobile payment solution.

The Yankees call this move away from PSMS a “much-needed paradigm shift” – leading to benefits for MNOs and consumers alike.

This new Yankee Group report identifies how Direct Operator Billing: -

  • Increases operator and app store revenues
  • Enhances customer experience and security
  • Drives adoption of mobile payments
  • Improves reporting and management of operator billing systems

DOB is chosen by four times more consumers than PRS to pay for apps.

Bango urges MNOs to join the “forward-thinking vendors that have made investments in direct operator billing.”

Readers can download this free research from here.

About Tony Dennis

Tony is currently Editor of GoMobile News. He's a veteran telecoms journalist who has previously worked for major printed and online titles. Follow him on Twitter @GoMoTweet.
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