With close to 950 million mobile phone subscribers, telecom operators wield an enviable base of customers to whom ancillary and unrelated services can be marketed. Billing is a perennial issue in a market riddled with security concerns, lack of payment alternatives, low credit card penetration, etc. Given this situation, Direct Carrier Billing seems to come as a viable and trust-worthy alternative. It is for telecom operators to examine this option assess its viability and implement it.

1. The Power of
Direct Carrier Billing
Direct Carrier Billing (DCB) or Direct Operator Billing (DOB) is a system that links
transactions carried out with third parties with the users' telecom operator. The
operator's billing system identifies the user's unique mobile number to notate transactions
and bill in the subsequent billing cycle.
Some Types of Mobile Payments
Proximity Mobile Payments
Mobile as the
Point of Sale
Mobile at the
Point of Sale
Mobile + Credit Card Mobile + NFC/QR
Code
Remote Mobile Payments
Mobile + Direct Carrier Billing
The Market Opportunity
Population:1237 Million
Median Age:27 Years
GDP Per Capita:
Smartphone Market Growth Rank:
Mobile Internet Connection:
Rs.3.89 Lakhs
#1
370 Million
Reasons why Direct Carrier Billing can Take-off
1.9% 53%
Penetration Penetration Penetration Penetration Penetration
Credit Card Debit Card
84%
Mobile Phone Smartphone
16%
Mobile Internet
30%
Direct Carrier Billing - Current & Potential Use Across Markets
Sources:
https://www.ericsson.com/news/150616-india-to-have-1-point-4-billion-mobile-
subscriptions_244069646_c
http://www.mobilepaymentstoday.com/images/direct_carrier_billing_infographic.png
http://www.dnaindia.com/money/report-idea-offers-breakthrough-for-google-in-
india-to-partner-to-provide-carrier-billing-services-2209466
India is estimated
to have 750M
Smartphone Users
by the year 2020.
Source: Ericson
Developed Markets
Developing Markets
1st Gen Digital
Content
(Ringtones,
wallpapers,
infotainment)
Direct Carrier Billing - Current Use
Direct Carrier Billing - Potential Use
3rd Gen Digital
Content
(Apps, music,
video games,
e-books, etc.)
Mobile
Ticketing
Small Ticket
Items e-Commerce Point-of-Sale
Advantages of Direct Carrier Billing
One-Click
Payment
Added
Security
Low Revenue
Leakage Intuitive Easy
Accessibility
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