1. Making Money From the
Mobile Web in Latin
America
Wayne Thorsen
Vice President, Global Partnerships
Telefonica Digital
12.11.2012

2. 2

3. Carrier Billing: What it is
What is Carrier Billing
Enables customers to charge goods to their operator account
Key Aspects
Currently only available for digital goods (such as mobile games, digital content,
virtual credits, etc.) but options exist to extend to physical
Available for both Pre Pay and Post Pay customers, though they each have
different requirements and costs
Currently, Telefónica is actively participating in Carrier Billing in Europe (with
various partners) and Brazil, Argentina , Colombia and Mexico , with trials being
done in other countries
3

4. The press is awash with news of Carrier Billing
and its rapid growth
4

5. Carrier billing looks to have a robust future
Value of in-payment transactions
(US $M)
• A steep rise in the volume & value
of mobile payments over the next
2-3 years
Source: Gartner 2012
Mobile Application Downloads Billed by Carrier
(Forecast)
70%
60%
• Carrier Billing is
predicted to grow steadily 50%
in Europe, with a much 40%
faster increase in Brazil 30%
and Latin America
20%
10%
0%
2012E 2013E 2014E 2015E 2016E
As Percentage of total
Source: Yankee Group
5

6. The market potential is huge
LatAm Virtual Goods
Brazil, Colombia, Peru, Argentina
and Mexico driving the growth.
With $336 Million in
2010, the market is
expected to reach
$517M in 2012
24% YoY Growth
6

7. Carrier Billing brings significant value compared with traditional
payment methods
CONVENIENCE UNIVERSAL
Thanks to a simple, fast and Thanks to mobile penetration,
impulsive check-out process included as standard
(no registration process) capability
7% 5%
10% Others
27%
35–49 13–17
39% End-user demand for
17% Convenience
25–34 56% mobile phone payments
No credit
39%
card
18–24
Age segmentation on D2B Why did you pay by mobile?
LACK OF OPTIONS CONVERSION RATE
The youth segment (for virtual Much higher % of clients
goods) has no access to credit finishing the purchase
cards) (sales x7)
7

8. Mobile and financial services penetration
• Success in mobile financial
services = a high mobile
penetration + a relatively
low penetration of
financial
• Mobile penetration
already exceeds 100 per
cent in many countries, as
some individuals have
multiple lines
• A more eloquent form of
displaying this relationship
= the ratio of mobile to
financial services
penetration
8

9. This results in different opportunities within developing
economies
Developing economies
Direct operator Enabling direct operator billing for
billing digital goods and services.
Transport ticketing [Limited mass transport infrastructure.]
Enabling money transfers to
Mobile transfers
merchants and billers.
Enabling small merchants to accept
Mobile point of sale
payments with a mobile.
Mobile contactless
[Limited point of sale infrastructure.]
payments
Mobile digital wallets Enabling mobile digital wallets.
Remittances Enabling cross-border remittances.
Selling financial Distributing simple financial products
products to unbanked customers.
Source: Forrester Research
9

10. Telefónica offers carrier billing to key partners
10

11. Get in touch
Explore our Hub: http://www.telefonica.com/digitalhub
Track us on Twitter: http://www.twitter.com/tefdigital
Watch our latest videos: http://www.youtube.com/telefonicadigital
Look us up on LinkedIn: http://www.linkedin.com/company/telef-nica-digital
11