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©K Advisers Oy 2015 1
History
Timo Kangas
©K Advisers Oy 2015 2
Context
● Original story is from Mobile Expo 2002 in
Messukeskus (www.messukeskus.com)
● Yes, it has...
©K Advisers Oy 2015 3
Credit Risk Management in Mobile
Commerce
©K Advisers Oy 2015 4
Agenda
• Background information
• Payments/payment concepts
• Use case
©K Advisers Oy 2015 5
Market Development in Western 
Europe
0
10
20
30
40
50
60
70
1999 2000 2001 2002
Growth %
ARPU $
Rev...
©K Advisers Oy 2015 6
New Sources for Revenue
Europe, revenues of all applications [M$]
0
20,000
40,000
60,000
80,000
100,...
©K Advisers Oy 2015 7
Payments and the Risk
Management
©K Advisers Oy 2015 8
Payment Types
Volume billing (traditional):
• Voice per time, Data per amount
Micropayments:
• Small...
©K Advisers Oy 2015 9
Combined Pre/Post Paid Account
Principles:
• IN based Prepaid
solution
• Post/Pre Paid account
for e...
©K Advisers Oy 2015 10
Business Model
Banks Ads
Asps
Content
Providers
Network
Operators
Users
Services
Voice Data Micro
p...
©K Advisers Oy 2015 11
Rule Based Rating
©K Advisers Oy 2015 12
Implication of the business model
Fusion Telecom
Bill for 1­Mar­02 to 31­Mar­02 Bill for 1­Mar­02 t...
©K Advisers Oy 2015 13
Use Case - Multimedia Messaging
©K Advisers Oy 2015 14
Use Case ­ Multimedia 
Messaging 
©K Advisers Oy 2015 15
Use Case ­ Multimedia 
MessagingMMSC Prepaid Content
3: reserveAmountReq()
4: reserveAmountRes()
5:...
©K Advisers Oy 2015 16
Conclusions
• New services coming!
• Old billing structures are not future proof!
• Billing based o...
©K Advisers Oy 2015 17
Tim O'Kangas
Managing Partner
                          K Advisers Oy
Addr. Tuohimäentie 90B, FI-00...
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Technology exists much before the other environment is ready for it.

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History

  1. 1. ©K Advisers Oy 2015 1 History Timo Kangas
  2. 2. ©K Advisers Oy 2015 2 Context ● Original story is from Mobile Expo 2002 in Messukeskus (www.messukeskus.com) ● Yes, it has some issues compared what could be a practical business model ● Today same thing is published as a new idea ● :D ● Yes, I didn't work at K Advisers Oy in 2002 ● My home was in Ireland that time ● Special thanks to Z
  3. 3. ©K Advisers Oy 2015 3 Credit Risk Management in Mobile Commerce
  4. 4. ©K Advisers Oy 2015 4 Agenda • Background information • Payments/payment concepts • Use case
  5. 5. ©K Advisers Oy 2015 5 Market Development in Western  Europe 0 10 20 30 40 50 60 70 1999 2000 2001 2002 Growth % ARPU $ Rev. growth %
  6. 6. ©K Advisers Oy 2015 6 New Sources for Revenue Europe, revenues of all applications [M$] 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Multimedia Machine to machine Business data Transactions Advertising Info services + surfing E-mail SMS Voice
  7. 7. ©K Advisers Oy 2015 7 Payments and the Risk Management
  8. 8. ©K Advisers Oy 2015 8 Payment Types Volume billing (traditional): • Voice per time, Data per amount Micropayments: • Small services; bus tickets, Icons, MP3, etc. • Content type of payments • Unit price not a risk, volume is M­commerce: • Tangible goods • Unit price is a risk, not necessarily the volume
  9. 9. ©K Advisers Oy 2015 9 Combined Pre/Post Paid Account Principles: • IN based Prepaid solution • Post/Pre Paid account for existing traditional services • Prepaid account for new services like MP3 downloading Why: • Consumer have easy way to control their phone bill • Legal/tax aspects with company mobiles • With expanding existing IN service the price of the transaction is very cheap.
  10. 10. ©K Advisers Oy 2015 10 Business Model Banks Ads Asps Content Providers Network Operators Users Services Voice Data Micro payments VNO VNOVNO
  11. 11. ©K Advisers Oy 2015 11 Rule Based Rating
  12. 12. ©K Advisers Oy 2015 12 Implication of the business model Fusion Telecom Bill for 1­Mar­02 to 31­Mar­02 Bill for 1­Mar­02 to 31­Mar­02 Carelia Telegraph Date Item Time Charge 1/03 weekly cartoon 09:04 0.50 1/03 Taxi booking 09:05 0.00 1/03 1 game(s) played  14:10 0.75 1/03 MM post card                     14:12 1.50 1/03 3 email(s) sent 14:15 0.30 2/03 NHL cup update 10:17 1.20 2/03 Aer Lingus TAP 10:23 0.00 point check Date Period Data Charge 1/03 09:00­10:00                     126kb 0.75 1/03 14:00­15:00                     512kb 2.55 2/03 10:00­11:00                     256kb 1.90 Which one is the future invoice?
  13. 13. ©K Advisers Oy 2015 13 Use Case - Multimedia Messaging
  14. 14. ©K Advisers Oy 2015 14 Use Case ­ Multimedia  Messaging 
  15. 15. ©K Advisers Oy 2015 15 Use Case ­ Multimedia  MessagingMMSC Prepaid Content 3: reserveAmountReq() 4: reserveAmountRes() 5: debitAmountReq() 6: debitAmountRes() 7: release() 1: rateReq() 2: rateRes()
  16. 16. ©K Advisers Oy 2015 16 Conclusions • New services coming! • Old billing structures are not future proof! • Billing based on VALUE! • “Rules Rules”!
  17. 17. ©K Advisers Oy 2015 17 Tim O'Kangas Managing Partner                           K Advisers Oy Addr. Tuohimäentie 90B, FI-00670 Helsinki, Finland Tel./Fax +358-44-0644448/+358-44-60644448 Mobile +358-40-5010839 email timo.kangas@k-advisers.com web www.k-advisers.com

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