Tigo converges OTT services with billing systems

Millicom, the Latin American and African telco, has confirmed a content distribution partnership with Dutch media solutions vendor Momac. The agreement will see Tigo, Millicom’s Latin American subsidiary, bundle together its wide range of data packages alongside various third party apps.

With convergence of conventional telecoms services becoming an increasingly important strategic direction for a number of incumbent service providers, the agreement between Millicom and Momac signals a major move for telcos embracing OTT and content distribution in Latin America. Momac claims its platform will allow users to easily register to OTT services, such as Deezer, Qello and Gameloft, straight from the Tigo-branded application or via the internet. Users are also able to rotate, swap and tailor their services each month, the vendor claims.

Bundling and convergence are ongoing trends and continuing to emerge, observed recently by the Telecoms.com Intelligence Annual Industry Survey, which revealed that 67% of the 2,000+ respondents believe bundling offers from content providers is a serious consideration for new revenue generating services.

And while new revenue generation is a perennial objective, Tigo’s offering integrates third party provider services with its billing and CRM system, so subscribers are able to pay for services through their monthly bill. With Latin America seeing a particularly low penetration of debit and credit cards, this appears to be a well-considered means of tapping into a new revenue stream.

David Gilarranz Berner, who is Millicom’s global head of digital, sees the move as a means for selling as many consumer services as possible. “Our customers are switching to smartphones and want to use them to access as many services as possible,” he said. “This partnership with Momac will make it easier for them to access all kinds of new content such as music streaming and sports apps. It’s a key part of our strategy to provide all digital lifestyle and promote stronger customer loyalty with valued services and attractive bundles.”

The service has already begun rollout in Guatemala, Colombia, El Salvador, Bolivia and Honduras, and Tigo expects to hit all of its Latin American markets by Q3 2015.