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VC firm Andreessen Horowitz just invested $15.5M in ItsOn, a startup hoping to change how...

VC firm Andreessen Horowitz just invested $15.5M in ItsOn, a startup hoping to change how carriers such as AT&T (T) and Verizon (VZ) charge for mobile data. Instead of charging users monthly for a bucket of data good for any app, consumers, carriers, and developers would be able to pay/bill for specific apps over various periods of time. Getting carriers to change is never easy, but the fact AT&T and others have already talked about per-app billing suggests ItsOn's approach could find some takers.
Comments (2)
  • Veritas1010
    , contributor
    Comments (1574) | Send Message
     
    How would this affect the cash flow and recoverable's for the major telecom's in NA?
    30 Oct 2012, 09:11 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (853) | Send Message
     
    I think it could benefit cash flow in two ways:

     

    1) If it allows carriers to target cost-sensitive users who don't want to pay for expensive smartphone data plans by allowing them to buy access to a handful of popular apps, such as Facebook, Twitter, Gmail, Maps, etc.

     

    2) If it allows carriers to profit from developers of data-hungry apps paying them to keep user consumption from counting against existing data plans. For example, Netflix, Pandora, or YouTube could offer $1/month to keep their apps from counting. They might decide it's worth it to maximize subscription or ad revenue.

     

    One thing's for sure: carriers won't do it until they first take a hard look at the bottom-line impact, and decide the revenue opportunities more than offset cannibalization of existing services.
    30 Oct 2012, 11:21 PM Reply Like
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