Forecast: Operator revenue boosted by super bundling
July 3, 2023
A study from Juniper Research has found that operator-billed revenue from carrier billing spend will reach $13.8 billion (€12.6bn) by 2027; rising from $9.3 billion in 2023.
This rise of 47 per cent is accelerated by MNOs’ (Mobile Network Operators) use of super bundling, which attracts new customers and revenue streams. Super bundling is the combining of multiple different subscriptions into one bill and allows MNOs to generate revenue from subscriptions, by taking a cut of the subscription cost. Consumers benefit from this, as they are able to consolidate a range of subscription payments with one bill, which is more convenient. These bundles are often discounted compared to the sum of the individual services.
Additionally, a user is less likely to cancel a subscription which is part of a larger bundle within a single bill. This will result in less churn for individual services, which will be a major benefit for subscription businesses.
Report author, Michael Greenwood, commented: “As traditional revenue, including texts and minutes, has been declining over time, MNOs have been keen to identify and leverage new sources of revenue. The introduction of super bundling allows MNOs to monetise third-party subscription services, creating a more profitable model, and lowering the risk of subscriber churn, by tying users more deeply within the MNOs’ ecosystem.”
Carrier billing is well positioned for this, as it is already a proven recurring billing mechanism. Via carrier billing, subscription services can also access MNO customers, representing large addressable markets, which will be highly appealing to subscription services looking to accelerate their growth.