[Marketwire] With the race for mobile applications heating up, device manufacturers, application developers and carriers are looking to plant a stake for their piece of the App Store market. Hopes are high for mobile applications to account for a significant piece of wireless revenue (as much as a 30% cut of app sales anticipated by Vodafone in an announcement last month) and consumers are hungry for more options, apps personalized to their own preferences, and a seamless extension of their "web" life onto the mobile channel. However for App Stores (whether they be from Apple, RIM, Nokia, Vodafone, or others) to be a mainstay within the consumer market, operators MUST play a part in ensuring apps can be accessed by the mass market despite handset fragmentation and existing limitations imposed on consumers without high-end smartphones. At the end of the day, operators can overcome many of these limitations current App Store models present by improving infrastructure; infrastructure that allows them to roll out intelligent, service-driven applications that meet the clear demand from consumers.
According to a recent survey conducted by Airwide Solutions and mobileSQUARED, operators can and want to have a defined role in the applications ecosystem, enhancing the app experience with unique operator and network assets. But to do that, Airwide offers a set of critical questions carriers must be willing to answer if they are intent on jumping into the apps game. If they are, the door is wide open.
1. How do operators negotiate a revenue share with application developers to make an app store worth it?
Operators should think outside the box when it comes to mobile applications; find a way to layer services on top of third party apps for maximum revenue potential. Developers want viable entry points to subscribers and realize it's ultimately the pathway to success, but carriers shouldn't be afraid to break away from traditional service and content delivery models to make the collaboration with developers work.
2. Is the App store model open for debate?
Carriers talk about replicating the app store model, but can that be done when the model is still in its infancy? The reality is there is no set model and no right way to go about it. The market will continue to see the model evolve over the next few months and years, and carriers should focus on enhancing app stores, rather than reengineering them.
3. Should all apps be available to all subscribers or should carriers target apps for enterprise users and apps for consumers differently?
A successful app store will be one that offers innovative applications to users no matter what their device or what their function. App offerings should not be limited to business (i.e. smartphone) users. Carriers must establish a model that offers device agnostic service-enhanced apps.
4. How much is too much?
Carriers shouldn't underestimate their customer base. While there is a lot of competition among carriers, device manufacturers and developers to hook the subscriber on an initial app sale, all customers want the same thing -- ease-of-use, uncomplicated purchasing agreements, and most importantly personalization and customization. Flooding the web/consumers with new app options is only as good as the services delivered with them and that is the differentiator carrier-driven app stores offer.
5. Does it all come down to trust?
Carriers have an incredible advantage in the app store business to leverage the trust and loyalty of subscribers. Recent reports suggest that while Apple's App Store saw a record number of downloads, most free apps eventually get deleted after the first download. There's no staying power. Factor into that there is little tying a subscriber to third party apps and there is a very tenuous basis for repeat purchasing. Carriers, on the other hand, with long-term relationships and a trust-factor unlike that on the Web, can bring a new level of engagement between consumers and the apps they purchase. This is good for everyone.
Carriers Face Critical Questions as They Explore Investment in Mobile Applications - Airwide Solutions Outlines Top Considerations to Guide Operators' Entry Into App Store Market
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