Freemium for Carriers

funambol_1.gifFunambol has a new free (registration required) white paper on ‘Using Free-nomics to Avoid Pipe-ification. It considers the freemium model for carriers who are "battling deep-pocketed competitors who deploy freemium-based mobile services".

Strategies for making money from free services include…

  • Try-then-buy (as used by Apple)
  • Premium content (as used by Apple, Nokia, Vodafone)
  • Premium and ancillary services (as used by Microsoft)
  • Advertising (as used by Google)
  • Selling hardware/mobile phones (as used by Apple, Nokia, Palm)
  • Lowered cost of customer retention (as used by Nokia, Palm)

This paper shows that mobile developers are the only people having to adjust to an end-user expectation for free applications and services.