Mobile services, particularly those geared towards the youth segment, are enjoying unparalleled levels of popularity. While strong growth in digital distribution is good news for all stakeholders, it simultaneously creates new challenges.

The key issue of how to ensure streamlined, accurate and timely payment between multiple content providers and operators led to the creation of Ericsson Internet Payment eXchange (IPX). Although still an immature market, the mobile content and payment industry was estimated to be worth USD 39 billion in 2006 (Source: Strategy Analytics).

By supplying the payment and connection service and streamlining the interface between stakeholders, IPX allows content providers and operators to remain focused on their core business. It also removes the need for extra resources to address complex back-office issues.

IPX is also resulting in closer collaboration between the telecommunications and music industries. It helps simplify the technical and contractual issues between content providers and network operators, while simultaneously increasing global distribution.

For example, MTV, best known as the pioneer of music television, has evolved to incorporate much more than traditional TV. Regarded as the world's strongest media brand, with an international TV network providing services that reach half a billion households globally, MTV now has a strong focus on digital media and sees a good opportunity in the mobile medium.

Tobias Mannheimer, business development manager at MTV, says: "Youth culture is driven by digital technology. It affects the way they play, communicate and express themselves.

"Our viewers have a mobile phone in their pocket all the time, so we go where they go," he says. "Our success is based on following viewers wherever they are, across a variety of platforms, so they can access MTV wherever and whenever they want."

The depth and breadth of MTV's digital offering has led to Ericsson IPX - which incorporates messaging and payment functions - emerging as an important supplier for MTV.

Ericsson IPX handles the billing services for some of MTV's key mobile content, including "Musicshop" - a service that downloads music to mobile phones. IPX also supports MTV's on-screen activities, including voting, SMS services and competitions.

Mannheimer says: "Most of the mobile content - such as videos, ringtones, wallpaper and games - that we sell through our websites, operators and third parties, is billed by Ericsson."