Carrier billing in action on Windows Phone 7, provides an end-run around iTunes

October 5, 2010 | By Surur

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Steve Jobs always claims one the major advantages Apple and iTunes has over competitors is having the credit card numbers of 160 million.

One of the ways Microsoft aim to counter this is carrier billing, where (at least in US where Pay as you Go is uncommon) this means 80% of the 285 million cell phone users in USA will be able to pay for apps, games and music without even coming close to a credit card.

Paul Thurrot from Windows Phone Secrets posted this part of his cell phone bill showing charges of $4.28 for 3 games her purchased. While he portrays it as a tale of woe, I think it is evidence of how Microsoft intends to make an end-run around Apple and its tiny collection of 160 million credit cards.

Do our readers agree? Let us know below.

About Surur

Site Admin and Windows Phone enthusiast, he has been using Windows Mobile devices since before they were called PocketPC’s. He is currently sporting a HTC 7 Trophy.

Tagged carrier billing, marketplace, software, windows phone 7

bertlagaisse

The windows marketplace for windows mobile 6 already supports this in a lot of countries. I think it's better for developers as (younger) users do not need a credit card anymore

Lennard

I have the same feeling. my nephew was using my phone and baught a bunch of games…. :-/ thats how I found out because I was always looking at the free apps. if Microsoft is going to do this, they need to creat a "pin" or "passcode" that the user can set so no one else will be able to buy apps without the pin. having it there in the open where anyone with access to the phone can just go and pay for an app will lead to a number of crazy bill shock tales!!!

vangrieg

Carrier billing will always come with a surcharge. I doubt there's anything exciting in it.
bch

If you can't direct bill through Microsoft (like iTunes), then this will be pretty bad because you will pay about 50% more for the privilege of paying on your phone bill rather than on a credit card. I suppose this is a nice option if you don't have a credit card, but for those of us who have one, it just means apps will cost more.
Jake

Can this be switched off? It doesn't effect me but two things come to mind:
1) I never look at my phone bill but I do check my credit card statement. This would be a hassle to me if I didn't have an option.
2) How would parents prevent their children running up massive phone bills? I'm not sure why a parent would want their child to have an expensive smartphone but some people have no common sense

chinch

wait until 10/11 when marketplace is 100% revealed to public.

you can purchase direct from microsoft using your live account this has been mentioned months ago.

Danny

This is the key point – whether or not these apps were purchased through the at&t section of the store. It sounds like, from the post that there were. However, if they were just purchased from the general app store then I agree with thurrott. This is a tale of woe.

Why in the world would you want this stuff to show up on a carrier bill? That's insane. These are the same guys who surcharge charging you and try to get $4 for a 20 second ring tone! Carrier billing is the worst and the poster might be the only person I've ever heard of who is apparently a fan of it. It is absolutely crazy to say this is some kind of advantage – maybe to the carriers but not for the consumer. Whose side are you on?

l3v5y

From a developer standpoint, it creates a much larger audience (those that don't have credit cards), who can pay for apps. That's a significant advantage to any platform that supports it.

iDisagree

I disagree. My carrier already sucks at billing and I think developers should be paid at the point of delivery (download) for their product. The marketplace should serve as THE direct conduit for purchasing apps, defective app reporting, and attaining refunds for those defective apps. If you put this responsibility in the hands of carriers, that's just more dilution of already piss poor customer service.

http://www.facebook.com/chris.lynch.hp Chris Lynch

Carrier billing should never be an option. They rape you as it is with their surcharges. I will never buy any application from any carrier, unless it was offered directly from the Zune/WP7 Marketplace.
l3v5y

This is just an option, not a requirement, you can pay for apps with a credit card if that's what you want to do.

chinch

Paul can be such a tool. Carrier billing for me personally is idiotic – but a WELCOME OPTION as many want that especially corporate or family plans. WP7 carrier billing would originate from marketplace only.

Companies collect state sales tax in reality. Someday even Amazon.
Soosan

In the US people buy everything with a creditcard. This is not the same in the EU. Most people only use their creditcards to purchase flights and vacations because that's the only way to get that done. Other than that people hardly use creditcards over here.

So while this may seem bonkers for US people it makes perfect sense in the EU. Prices in the marketplace for EU need to be transparent from the get go anyway, so while the above might have been an ordeal for Paul it does not have to be the same across the pond.