@ EconSM: Nokia Says App Sales Jump By 70 Percent With Carrier Billing

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@ EconSM: Nokia Says App Sales Jump By 70 Percent With Carrier Billing

About two weeks ago, there was a brouhaha over whether Nokia (NYSE: NOK) was actually going to support carrier billing when it launches the Ovi Store this month. Turned out that carrier billing was going to be supported in eight countries, just not at first in the U.S.

At EconSM today, Nokia’s VP of product management, George Linardos, illustrated just how important operator billing is….“When we start locally with credit card billing and then we move to operator billing, we see a 70 percent lift in sales literally over night.” Of course, that doesn’t exactly translate to 70 percent more revenues since you are giving a cut to the operator, too. “That means there’s a cut taken out,” he said.

As for whether a relationship with Verizon Wireless (NYSE: VZ) will be hammered out soon? Verizon Wireless’s Jennifer Byrne, director of Digital Media and Business Development, who was also on the panel, wouldn’t say. Bryne: “I can’t comment on any ongoing discussions, but I think the connections to multiple storefronts and multiple billing options is something we are working on.”

As for when Ovi Store will launch, Linardos was vague. “Very, very soon.”

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Tricia Duryee

@triciad May 14, 2009 3:04 PM ET

Posted In: Social Media, Companies, Nokia, Verizon

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Maria

With the increase in percentage sales, Nokia only proves that they made the right move. Surely, this positive result will definitely continue.

Carrier Cashier

Nokia is just being diplomatic in the carrier comments. Besides the "70% lift in sales" being reduced by "carrier cut", the key factor is who owns the customer. Will the carrier cash in on the billing detail to cross-sell its other services? An example would be AT&T pitching its AT&T Navigator with TeleNav instead of Nokia promoting its Navteq acquisition. Carrier billing is a constraint on Nokia's mission to be in services. Carriers also want to be in services, and believe that their network market share fuels branding power. Billing can make the difference of who's in front of the customer first and in control. Nokia has to negate the billing influence with non-carrier payment. And carrier billing can lead to reconciling costs of the apps revenue as well as complicate negotiations in device pricing

seb

that's hilarious. everyone knows that hardly anyone buys mobile content using a credit card. in addition, the demographic of mobile downloaders generally skews young so in many cases these people don't have a cc to being with. Nokia is stating the obvious. the more interesting question would be the actual number of downloads in absolute numbers… ;) which, of course, they'll never say.