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Thursday, June 28, 2012

Mobile network operators expected to make more money from app downloads

Forecast says share of app revenue will increase but mobile content is falling

A new forecast from Informa Telecoms & Media expects mobile operators to increase their share of app revenues from 10% last year to 17% in 2016. However, they’ll also see their share of mobile content and commerce revenue drop from 44% in 2011 to 31% in 2016.

Although many services including mobile entertainment and messaging are going ‘over the top’, avoiding direct payments to networks, the adoption of carrier billing for paid app downloads will help to offset this lost revenue. Most major app stores, with the exception of Apple’s iTunes, offer the option of billing via mobile phone.

Guillermo Escofet, senior analyst at Informa Telecoms & Media, had a warning for mobile network operators. He said “Operators could miss out on the opportunity afforded by carrier billing if they don’t make it more affordable and accessible to app-store owners and developers, and if they do not introduce more efficient and flexible systems than the clunky and unreliable PSMS [premium SMS]. More compelling alternatives are already appearing in countries such as Russia, where instant-payment terminals in streets allow users to turn cash into e-money to spend on digital goods.”

Total mobile content revenue (total data revenues from consumers minus internet access and peer-to-peer messaging) is forecast to grow from $40.7 billion in 2011 to $131 billion (£84 billion) in 2016.

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Opinion Articles

f u cn rd ths thn wts th prblm?

Iain Graham writes:

Text language. Why do they do it?  What an interesting question!  Normally asked by people who have never ever sent a text, believing it to be the invention of the devil!! "Texters are vandals, doing to our language what Genghis Khan did to his neighbours eight hundred years ago" asserted Jhn (sorry) John Humphrys of Radio Four fame writing in the Daily Mail. The new 'text language' has been blamed for many things including...

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Is Google’s new mobile phone distribution model really a big deal for the UK?

Mark Bridge writes:

“Google offers New Model for Consumers to buy a Mobile Phone”. Not my words but those of Vodafone as it announced it was the first operator to bring the new Google phone offer to Europe.

There’s a lot of talk about Google’s online ordering process for its Nexus One smartphone… or ‘superphone’ as the company described it at yesterday’s launch.

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Mobile shopping is worrying... and usually successful

Mark Bridge writes:

I really don’t like to complain. Honestly, I don’t. I’m an optimist. True, I can be a bit of a cynic – but that’s because I like to see things work first time.

So when I saw a headline that said “Shopping via mobile phone causes concerns for consumers”, I wasn’t surprised. Disappointed but not surprised.

And then I looked closer – and I got annoyed. Not annoyed at the companies that make mobile shopping so disappointing. No, annoyed at the organisation that published the report.

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Is mobile technology too young to predict?

Mark Bridge writes:

“Leave them alone, they’re just kids”

My word, Anakin Skywalker was a smart boy. Child prodigy. Wunderkind. Genius, some would say, albeit fictional.

But, without the benefit of hindsight (or the Star Wars box set, as many would call it), very few people would have expected him to marry his babysitter, fall into a volcano, turn to the Dark Side and end up looking like the late Sebastian Shaw.

Which brings me to the mobile phone industry.

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Did 2009 turn out the way we expected?

Mark Bridge writes:

At this time of year it’s something of a tradition – certainly within the mobile industry – to make predictions for the year ahead. It’s a trend we’ve followed with The Fonecast… and we’ve done reasonably well over the last few years.

We’ll be making this year’s predictions for 2010 in our programme on 23rd December. Ahead of that, I’ve been listening to our last show of 2008 to see what we thought 2009 would hold for us.

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