Published on
October 14, 2010.
Please note, this article was initially posted on Netmobo’s blog, click here to read it.
According to a recent Bloomberg article, wireless carriers seem concerned with a potential new regulation requiring telecoms to help consumers avoid “bill shock.” Bill shock refers to a consumer’s surprise from unexpected cell phone charges, many times due to over-use. The article states that:
“A new bill in the U.S. Senate would force AT&T, Verizon and other wireless carriers to send you a message – either by e-mail or text – if you’re approaching the limits of your monthly service plan.”
The bill may also demand that carriers receive the consumer’s permission before charging for services outside the regular plan. For example, using BilltoMobile to bill your carrier for the latest copy of Angry Birds. This second change is reasonable as our carrier bill looks more and more like a credit card and privacy concerns on the web remain prevalent.
While the carriers have legitimate financial gripes, they won’t be able to avoid these types of warning systems. Whether it comes to fruition due to government regulation, or free market forces, consumers hate bill shock and from my personal experiences would appreciate a warnings system. In addition to just minutes, as most carriers do away with their “all you can eat” data plan’s a consumption warning will be welcomed. Moreover, the technology needed to fulfull this regulation is already commercially available in the form of metered subscription services. In fact, Netmobo and competitors provide just this type of service. Also, the perfect medium for sending these warnings, SMS and push-technology are both readily available on Smartphones.
Passing this regulation may be a welcome surprise for companies operating in the mobile billing industry. If the bill were to pass, carriers like AT&T and Verizon would now be required to either build the solution themselves, our outsource to a reliable metered subscription provider. The second option is the cheaper and quicker way to market and would create a potential windfall for certain players in the mobile billing industry. However, this new required demand may lead to lower metered subscription prices as more competitors enter the market giving the carriers greater power through choice.
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Published on
October 14, 2010.
Please note, this article was initially posted on Netmobo’s blog, click here to read it.
Product pricing decisions can be very difficult, especially for mobile app developers. While paying for more options seems to be the norm, yesterday’s headline regarding presentation, document and video sharing site, SlideShare’s new freemium offering had me thinking about innovative pricing strategies. In particular, as opposed to paying for more features, SlideShare customers can pay a premium for control, or the elimination of features:
The silver plan, which is $19 per month, includes…the ability to turn off ads. And the platinum level, which is aimed towards enterprises…gives users the control to turn of [sic] comments and more. Brands such as Dell, Microsoft and Pfizer are already using SlideShare’s pro offerings.
-TechCrunch
Paying a premium to eliminate ads is nothing new, but paying to eliminate a feature, in this case comments, was a novel idea for me. This strategy makes great sense for SlideShare. While enterprises want to easily share content on the Internet, they still want control over their brand. For example, Dell may want to garner customer feedback by sharing a product presentation through SlideShare, but Dell also wants to prevent any potential smear campaigns from competitors or other adversaries.
This pricing strategy can work for mobile app developers, but it requires a delicate balance between offering an unwanted feature, while not alienating potential customers. If implemented appropriately however, there is added value to eliminating features or providing more control. Due to growing concerns over privacy policy and the sheer volume of consumer data that is shared on the Internet, allowing customers to pay for fewer features or more control will help alleviate these concerns.
Published on
August 11, 2010.
The summer of 2010 has provided me with an amazing learning experience. At one point during my summer internship, I became a founding member of a New York City startup. My company, Netmobo, LLC, offers infrastructure technology solutions to mobile app developers. More specifically, Netmobo provides an advanced and flexible mobile billing solution. You can learn more about us on our website.
Currently, I am addicted to building Netmobo and I barely sleep as we prepare our product to enter a Beta test. In the meantime, our team is commencing a capital raise, implementing a comprehensive sales and marketing strategy, and forming strategic relationships.
The most significant reason for my growing passion for our business–the mobile back office–is our focused and experienced management team. Even though Netmobo operates in a competitive market where internet blue chips, such as Google and Facebook, are beginning to invade. Our team understands that Netmobo’s unique solution is well positioned to fill the need of a a large and fast growing market that wants our product.
Working in an exciting industry this summer has been a blast. As I complete my second and final year at Stern this fall, growing Netmobo will remain a priority.
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