Funambol 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.