Bouygues France and DOCOMO Digital partnership
Bouygues Telecom, the third largest mobile operator in France, moved to increase uptake of digital services among its mobile subscriber base of nearly 12 million and create new revenue streams back in 2013 when it started partnering with DOCOMO Digital
DOCOMO Digital implemented Google carrier billing for Bouygues Telecom, allowing subscribers to purchase digital goods and services easily, quickly and securely, such as apps, music, books and movies, via their mobile phone bill.
The new direct carrier billing (DCB) payment method, which instantly allowed more customers to purchase paid content, enabled Bouygues Telecom to focus on its core competencies, as the payment technology architecture can be flexibly adapted to existing payment interfaces and billing systems. This guaranteed a quick and cost-effective mobile payment integration with Google Play, and other app stores.
Bouygues Telecom followed up the integration with Google by selecting DOCOMO Digital in 2015 as its partner to expose APIs to merchants in a standard way. The next year it worked with DOCOMO Digital to introduce Spotify services to subscribers and in 2017 it implemented Netflix.
We needed to modernize our solution to simplify exposure of our carrier APIs. We selected DOCOMO Digital’s system which allowed us to bring in new mass-market merchants in a standard and industrial way thanks to the APIs it exposed to merchants. DCB helps us offer compelling digital services to customers, such as gaming, and to grow revenue and improve margins. We believe they are the right partners in our endeavor to become more agile and develop additional carrier billing services over the long term.
HEAD OF CARRIER BILLING, BOUYGUES TELECOM
Bouygues Telecom was able to launch the Netflix service in just six weeks, while it took less than a month to introduce Spotify. “If we were to implement this kind of project in-house, it probably would have taken nine to 12 months. Time-to-market was very short," according to Franck.
DOCOMO Digital also supported Bouygues Telecom’s move into ticketing for public transportation, first using an SMS mechanism four years ago. The service available in 16 cities in France.
Users simply text a short code to receive a unique ticket that can be used for any type of public transport, such as subways, buses and trains. Commuters can purchase tickets at the last minute, the charge goes to their mobile bill, and they don’t have to stand in line. The ability for operators to offer carrier billing for ticketing was introduced in Europe with the new Payment Services Directive (or DSP2) – before the new regulation came into force, operators were only authorised to offer digital services with carrier billing. After DSP2, it was expanded to include ticketing and charitable donations.
Merchants lose a great deal of business because many consumers are reluctant to use credit cards online due to security concerns and entering the information via a handset can be cumbersome. Based on data from merchants, the conversion rate for a merchant offering digital services using DCB is between 5- and 9-times higher than credit cards.
While benefits of DCB on the operator’s topline are clearly discernible, it is less simple to gauge the impact on customer experience and loyalty. Semanne said, DCB clearly allows for operators to work more closely with merchants as a net positive.
Research shows ARPU for carrier billing users is about 30 per cent higher than other users and carrier billing subscribers consume twice as much data as non-users, meaning operators generate additional value from subscribes using higher priced plans or pay for extra data.
ABOUT BOUYGUES TELECOM
A global communications operator, Bouygues Telecom sets itself apart by bringing the best of technology to its 15 million customers every day. The excellence of its 4G network, its services in landline and cloud allow them to enjoy their digital life simply, fully and wherever they are. Bouygues Telecom is proud of the innovations that have been made to the French for 20 years, and its strategy will always remain the same: to democratise new technologies.