& cplSiteName &

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...
Sarah Thomas
50%
50%
Sarah Thomas,
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
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
UPCOMING COURSE SCHEDULE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Re-usable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into re-usable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Verizon CFO: Eat Our (Fixed) 5G Dust!
Dan Jones, Mobile Editor, 9/22/2016
WiCipedia: The Women Helping Women Edition
Eryn Leavens, Special Features & Copy Editor, 9/23/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Open Source Getting on My Nerves
Carol Wilson, Editor-at-large, 9/26/2016
Google, Facebook Gaining Network Equipment Clout
Patrick Donegan, Chief Analyst, Heavy Reading, 9/26/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.