Learning from Japan’s experience and what works in local markets to overcome key barriers to mCommerce success.

1. Realizing
mCommerce
Potential and
Carrier Success
Christopher Rischard
CSO of DOCOMO Digital
Sebastian Böhm
Senior Director Sales & Product Delivery
of DOCOMO Digital

2. LIMITED GROWTH OF GLOBAL CARRIER BILLING REVENUE | 2015 vs
2020
$16.6
Billion
$25.3
Billion
2015 2020
China has seen a big rise in carrier
billing revenue over the past three
years.
In 2015, it contributed virtually half of
all carrier billing revenue generated in
the developing world.
51%49%
Source: 2

3. CARRIER BILLING: GROWING AND DECLINING SEGMENTS
Operator share of carrier billing revenue, ($ bn), by segment, 2014-20
GROWING SEGMENTS
Os App Sores
Online PC Games
Indie Stores
Bundling/Off-Store Apps
DECLINING
SEGMENTS
Physical Goods
Browser Based
PRS/Feature Phones
$ bn
Source: 3
year

4. CARRIER BILLING REVENUE vs MCOMMERCE REVENUE
THE BIGGER PRIZE
mCommerce Carrier Billing
$ bn
Source: 4
year

5. WHICH ARE THE BARRIERS THAT HOLD BACK OPERATORS FROM CAPTURING THE
MCOMMERCE OPPORTUNITY?
CARRIER PSYCHOLOGY
REGULATORY BARRIERS
COMMERCIAL BARRIERS
STATE BARRIERS USER PSYCHOLOGY
TECHNICAL BARRIERS
Source: 5

6. BUT MANY OF THE CARRIER BILLING BARRIERS ARE LIFTABLE…
MINDSET CHANGE
USER EDUCATION, SAFEGUARDS UNFOUNDED BARRIERS
PREPAID OVERHEADS
Source: 6

7. …IF ALL STAKEHOLDERS WORK TOGETHER.
MOBILE
OPERATORS
REGULATORS
OTHER
STAKEHOLDERS
Source: 7

8. Our predictionis that carrier driven mCommerce
payments could grow from just over$3.2bn in
2015 to around $142bn in 2020.
Carrier Driven mCommerce
BIGGER OVERALL
MARKET
$1,9
trillion
$0,4
trillion
Overall
Commerce
Some of that revenue would be cannibalized from
projected mCommerce revenue, but a greater share
would be in addition to it, as consumers who were
previously unable to make mCommerce payments
found they were able to.
WHAT IF ALL THE BARRIERS
WERE SUDDENLY LIFTED?
Source:
8
0
200
400
600
800
1000
1200
1400
2014 2015 2016 2017 2018 2019 2020
Carrier driven mCommerce Payments, 2014-20 /
Projected mCommerce revenue, 2020
$ bn
mCommerce Carrier Billing
year

9. RECOMMENDATIONS FOR STAKEHOLDERS: COLLABORATIVE
APPROACH
MOBILE OPERATORS
REGULATORS
MERCHANTS
Source: 9

10. DOCOMO JAPAN: A TELCO WITH A COLLABORATIVE APPROACH IN THE
ECOSYSTEM: REMOVING BARRIERS AND OPERATING WITH AN «ADD +»
APPROACH
BILLING /
PAYMENT
CUSTOMER BASE
CUSTOMER
CONTACT /
REFERRAL
TECHNOLOGY
(R&D)
+
Agriculture/Fishery
Education
RetailTransport
IoT
Medical / Health care
Source: NTT DOCOMO 10

11. DOCOMO JAPAN: AHEAD OF MOBILE INDUSTRY TREND
11
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
(FISCAL YEAR)
WORLD
DOCOMO
MOBILE
INDUSTRY
REVENUE
TREND
Source:GSMA
“Smart-Life”(non-telecom)
Data
Voice
Voice
Data
Source: NTT DOCOMO

12. REF. CARRIER BILLING MERCHANTS IN JAPAN
12
Shopping
Game
Contents
Service
(Japanese Oyster Card)

13. WHO WE ARE
— DOCOMO Digital is the holding company for
all of NTT DOCOMO‘s overseas Connected
Commerce and Content business;
— Nearly 1,000 professionals in 35 locations
globally, across 6 regions;
— 90+ Advanced DCB connections;
— More than 15 years of experience in the
mobile payments, mobile content and mobile
conversion space;
— Processing over 2bn EUR worth of
transactions per year;
— No. 1 App Store Carrier Billing integrator in the
world;
— Preferred GSMA strategic partner for Mobile
Connect
CONNECTEDCOMMERCECLOUD BUSINESS CONTENT BUSINESS
COMPANIES
for
13

14. WE OPTIMIZE MOBILE CONVERSION WITH 5 VERTICAL SOLUTIONS
App Stores Digital Merchants Retailers & ServiceProviders
RegulatorsBanks /
Networks /
Data
Providers
Technology /
ICT Partners
Mobile
Network
Operators
Marketing
Partners
Fulfillment
Operators
CONVERSION
MARKETING
ENGINE
OPTIMIZED
SHOPPING
PAYMENT
(CHECKOUT)
FULFILLMENT
DELIVERY
CUSTOMER
SERVICE
BIG DATA
Merchant
turnover growth
14

15. connect@docomodigital.com
DOCOMO Digital
www.docomodigital.com
CHRISTOPHER RISCHARD
CSO
SEBASTIAN BÖHM
SENIOR DIRECTOR SALES & PRODUCT DELIVERY
THANK YOU