Light Reading

Telefónica + Samsung: Digital Dream Team?

Ray Le Maistre
5/17/2013
50%
50%

I've been at Management World 2013 in Nice, France, this week, where the industry, realizing that voice and mobile text messaging will not sustain the sector for much longer, was trying to figure out how to generate new revenues in a digital world. As the event closed down and more than 3,000 people wondered whether they would get through customs without having to declare the Microsoft Corp. Surface RT tablet they'd picked up gratis at the show, Telefónica SA and Samsung Electronics Co. Ltd. reminded everyone that there's still hope for the telcos. (See MW13: QUICK – FREE STUFF!!) That hope springs from the strategic development and deployment of Service Provider Information Technology (SPIT) capabilities and is based around a combination of the new -- the development of APIs that hook up telecom operator assets to third-party partners -- and the old, the carrier billing system. In a nutshell, Samsung has agreed to integrate the BlueVia payments applications developed by Telefónica Digital in its smartphones and tablets. The BlueVia API (application programming interface) creates a link between the devices and Telefónica's billing system, enabling Samsung device users to add the cost of buying mobile apps and services to their mobile bills, without the need to enter any credit card details or hook up manually to an external payment platform. (And if it all works OK, then Telefónica gets a cut of the transaction along with increased customer satisfaction.) That's a relationship known as "direct carrier billing." It's not new and we've already highlighted the potential of developing such relationships. (See How Telcos Can Deal With OTT and Telefónica, Telenor Team on APIs.) But direct carrier billing is gaining momentum and this new relationship marks a significant step in the adoption of such relationships because it brings together one of the world's largest telecom operators, with about 250 million mobile customers in Europe and Latin America, and the world's biggest mobile device manufacturer. (See Smartphones Outpace Feature Phones, Samsung Leads.) Now, this isn't going to change the market overnight. Samsung has to integrate the BlueVia API and Telefónica needs to update its billing platform: The direct carrier billing capability will be launched first in Germany "in the coming months." But in time I expect this will make a difference to Telefónica, not only in generating additional revenues but also in attracting other key partners and in holding on to its most valuable mobile customers. I'll be very surprised if this relationship isn't getting a name-check in Telefónica's quarterly earnings reports in 2014. — Ray Le Maistre, Editor-in-Chief, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Richie
50%
50%
Richie,
User Rank: Light Beer
5/17/2013 | 5:00:46 PM
re: Telefónica + Samsung: Digital Dream Team?
Maybe the telco's have been making far too much money for far too long, and maybe Karma really does exist. It's only natural for any company to identify new value add opportunities for those loyal subscribers (what some would call customers). Besides being nothing new, this may be more of a lifeline for telco than real value for customer. If the Internet is to genuinely become a human right, then maybe it's time for a complete rethink...
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
5/17/2013 | 2:22:14 PM
re: Telefónica + Samsung: Digital Dream Team?
Carrier billing is the one carrier API that just makes sense to me. It's upside for the operators and something consumers would welcome. I was surprised to hear Skype's Neil Ward say that it wasn't even able to work out carrier billing with the operators, instead working through an aggregator (although hasn't said to reach which operators). That's a little different since it's an OTT that's directly competitive, but still seems like a no-brainer since it's going to ride their networks either way.
More Blogs from EuroBlog
Having taken a breather from its acquisition spree in the US, Zayo could kick-start some infrastructure consolidation action in Europe
Some good news for its Finnish parent – Nokia Siemens Networks is on a margin roll
Telefónica to boost its broadband lines in LatAm with DSL management the from ASSIA
According to the value of Nokia's takeover deal, Nokia Siemens Networks is worth less than $5B
As APAC and North America forge ahead, Europe seems stuck in yesteryear
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?