Asian Consumers Want Sponsored Data
A survey of 3,500 people across seven Asian countries, including India, China and South Korea found that 62 percent would consider sponsored data packages that provide free access to specific content.
"Content providers, mobile service providers and consumers have been stuck in a no-win situation when it comes to mobile data usage," said Mary Clark, Syniverse CMO. "Consumers want to use more data along with richer mobile engagement, and operators and content providers are missing out on the revenue that this usage could deliver."
Nearly half of respondents (49 percent) said they would be willing to accept coupon offers from data-use sponsors, 42 percent would be willing to accept offers from entertainment businesses, 31 percent from restaurants, bars and cafes and 29 percent from travel firms.
The survey suggests sponsored data plans could significantly affect consumers' content consumption.
Data-intensive content, such as subscription video services (which are currently the most costly services to access), would see increases in usage of 40 percent.
Consumption of subscription-based music services by 25 percent.
Other services expected to see moderate increases include free video services, voice and video calling services over data networks, and online games.
Consumers are most willing to accept sponsorship for reduced or free data costs from entertainment providers, restaurants and travel companies.
Consumers also understand and are willing to accept sponsored messages and advertising in exchange for free access to websites, social networking and video services.
Those findings should not come as a shock. For any desired product, lower prices boost consumption.
Data-intensive content, such as subscription video services (which are currently the most costly services to access), would see increases in usage of 40 percent," Syniverse said.
Sponsored-data packages could, calculates On Device Research, lead to a $6 billion revenue opportunity for mobile operators and their partners--in Asia alone--within the next five years.
"Our analysis shows that the sponsored-data model has the potential to substantially affect consumers' behavior favorably for all parties involved," said Sam Brown, CEO of economists Strategic Economic Engineering Corp (SEEC) who worked with On Device Research to calculate revenue.