The mobile market in Germany is in the middle of a consumer behavior shift. Smartphone penetration and app usage have entered the mainstream and digital content consumption on mobile is on the rise, but app payment remains niche. Consumers switching from traditional phone calls and texting to internet voice communication and messaging contribute to the fact that effective monetisation of mobile data will be an ever more important revenue driver in German Mobile Network Operator (MNO) strategy. MNOs have an opportunity to play a key role in the future adoption of app spending too, for example via In App Purchase (IAP) credit bundles. Although such involvement will result in higher app spender penetration, stakeholders will risk devaluing in-app products as a result of too much ‘feels like free’ availability.

Companies mentioned in this report: T-Mobile, Telefonica, Vodafone, Telekom Deutschland, Telefonica            Apple, Google, uTorrent