Light Reading
It's not the end game, but a new accord between Telefónica Digital and Samsung is showing the way for traditional telcos

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
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
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
The Human Gain of the Smart Home
Robin Mersh, 10/20/2014
Zayo Zooms Out of the IPO Gate
Dan O'Shea, Managing Editor, 10/17/2014
Like Us on Facebook
Twitter Feed