Revenue sharing in Telecommunication Business


Why Revenue Sharing?

Tight competition on telecommunication business made all the telecommunication companies to make some innovation on the telecommunication service. This innovation is including how they will invest the telecommunication network. Revenue sharing is the best option to reduce high investment while deploying new telecommunication service or expand the existing telecommunication service. Revenue sharing in telecommunication business is giving much benefit to the three parties which involved to the telecommunication services.

Revenue sharing schema

Telecommunication companies will involve one or two parties to have revenue sharing while they plan to launch telecommunication service. It is depending on the agreement, to percentage of revenue sharing cold be different to each three parties. Some of telecommunication service requires the infrastructure provided by telecommunication companies and some by three parties. So there will be different schema of revenue sharing for each telecommunication service. Telecommunication companies used to higher revenue sharing rather three parties and it could more than 50% of revenue

Revenue sharing case

The sample of revenue sharing which used to happen on the telecommunication business is Ring Back Tone (RBT) service. RBT service will run if telecommunication companies cooperate with the music label which provides the music content.  Three parties in this case music label will earn revenue sharing once mobile telecommunication subscriber subscribes to the RBT service for a month or a week. It sharing schema could be 40% : 60% for telecommunication companies or 30% : 70% for the telecommunication companies

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