Bango has announced that it is providing resale and bundling technology for Amazon in India, enabling Bharti Airtel mobile customers to sign-up to Amazon Prime. The launch represents an expansion of the Bango Platform (“BP”) beyond Direct Carrier Billing (“DCB”), and also increases Bango’s exposure to a sizeable mobile and e-commerce market. The release contains no details on the contract terms and we make no changes to forecasts at this stage. Continuing Bango’s recent trend of contract wins with top-tier internet players, in our view the contract demonstrates the ongoing momentum in the Bango business and the versatility of the BP.
Bango has expanded the BP to provide resale and bundling technology. Bango’s bundling technology allows resellers to offer third party services either for free, at a reduced price or as part of a bundled offer. In this case Bharti Airtel post-paid mobile and broadband subscribers can activate an offer of a free one-year Amazon Prime membership through the Airtel TV app. The Amazon India launch represents Bango’s first deal with Bharti Cellular – the country’s leading Mobile Network Operator (“MNO”) with 290m subscribers.
Global internet leaders are able to increase sales by using the Bango Platform. Bango is paid for transactions across Direct Carrier Billing, resale and bundling, and any other services such as identification or customer information. Pricing is based on the services provided by Bango, even when resellers offer free periods or promotional bundles. Although India is the launch market for Bango’s resale technology, we understand it is available in all territories where the BP is present.
India reached a total mobile subscriber base of 975m in November 2017 – making it the second largest mobile market in the world (source COAI). Since 2016, Bango has provided a Direct Carrier Billing route via Idea Cellular for the Google Play store. Industry sources estimate annual e-commerce spend in India at US$16bn, with compound annual growth expected to exceed 20% over the next five years. Although the sector participants dispute their respective market shares, Amazon is a key player in Indian e-commerce, alongside domestic player Flipkart.