the developer’s highway to make money out of application stores

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The developer’s highway to make money out of application

storesElena Fersman

Ericsson

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About ericsson› Founded: 1876 in Stockholm, Sweden› Employees: 86,537 (May 3, 2010)› Net Sales: USD 27.1 billion in 2009› Headquarters: Stockholm, Sweden

› 40 percent of mobile calls pass through our networks › Over 1,000 networks in 175 countries › 25,000 patents

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2010-02-123

What does a telecomnetwork infrastructure vendor do

at Web 2.0?

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2010-02-124

Opportunity vs. Challenge of Telco

Mainly APIs from Internet …

Very very few Telco apps …

The Telecom APIs are not so well explored yet = opportunity for developers

~1 new API/Day in ave.

~3 new Apps/Day in ave.

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2010-02-125

Web 1.0 Model

Push!

Professional Author

Users = Consumers

ProviderPublish

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Web 2.0 Model: User-Generated Content

Share!

Users = Authors

ProviderPlatform

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Web 2.0 Model: User-Generated Application

Create & Share!

Provider

Services

Users = Authors + Developers

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2010-02-128

Application Boom in Telco 2.0 Context

Telco 1.0

Telco 2.0

Applications

Popularity

The carriers controlled the network as well as the user

experiences

The carriers open up the network as well as the

innovation

For consumers it’s much easier to find personalized services than before!

The Long-tail Model

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2010-02-129

Telco 2.0 StrategyWidgetization Mashup

Socialization User-Generated

Perpetual Beta

Applications become small, focused, portable, webified and always-on.

More building blocks and combinations lead to more possibilities and innovations.

Winning Strategy: • Drive Telco innovation from Developers• Revenue by opening up the network to prosumers • Provide easy development & APIs

Collective wisdom is the essence of web 2.0. Nobody has better understanding of the users than the users themselves.

The world cannot afford waiting. A good application should hit the market a.s.a.p. and get improved by use.

Mobile Application Trend

When Social networking is becoming a major element of people’s communication ‘habit’, mobile applications have no excuse to refuse.

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2010-02-1210

What Capabilities can Telco Offer?

• Ringtone• Ringback Video• Photo• Video

Content

• Presence• Location• Device Capability• Terminal Status

Context

• Carrier Billing• Balance• Credit

Payment

• User Profile• Phonebook• Calendar• Browsing History• Mobile Social Networking

User Data

• MSISDN• IP Address• SIP Identity• Authentication• Aliasing• Privacy

Identity

• Voice Call• Voice Mail• SMS/MMS• Conference• IM• Wap-Push

Communication

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2010-02-1211

Ericsson Developer COmmunity

Developer Developer CommunityCommunity

Ericsson DeveloperEricsson DeveloperCommunityCommunity

ISVISVPa

rtner

Partn

er

Mem

bers

Mem

bers

• Free development tools• Technical documentation • Development advice and support• Go-to-market channel

Ever

yone

Ever

yone

• Market co-operation• Invitation to events• Innovation co-operation • Technology co-operation

labs.ericsson.comestore.ericsson.com

320 000 registered community members

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2010-02-1212

Ericsson Labs – Open Innovation

Expose BetaEnablers/APIs

CommunityDevelop AppsFeedback

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2010-02-1213

ERICSSON LABS Commercial enablers

From idea to business

BetaEnabler

ProductEnabler

ProductionPlatform

Graduate

APIAPI

Best EffortPlatform

Distribute

Ericsson estore

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2010-02-1214

Ericsson multimedia Brokering: IPX

Payment

25 countries 2 billion subscribers 90 operators

Messaging 350 operators 96% of all mobile phone users worldwide

Operator offerings Operator Payment &Connection Services

Subscriber Info Location Mobile Identification Mobile IP Lookup

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Operators developer interaction

Content ProviderDeveloper Service

ProviderContent ProviderDeveloperDeveloperService

ProviderContent Provider

Operator Operator Operator Operator Operator Operator

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Content providerDeveloper Service


Service ProviderDeveloperService


IPX simplifies businessOne stop global connection and collection

Ericsson IPX

Operator Operator Operator Operator Operator Operator

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The mobile web› The mobile web is mature

› Phones are available and customers are used to browsing

› Many big IPX customers say that 2010 is the year where they start investing in the mobile web

› Conversion rate 10-15 times higher with operator payments compared to credit cards

› Simplicity is KING!

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2010-02-1219

Mobile web payments

Thank you for your purchase! Please click the link below to download your ringtone.

Price: 12,0 €

AcceptReject

Service Name:Saint Etienne – Only love can break your heart

Provider:Ringtone Factory

More information

BUY RINGTONE

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2010-02-1220

BRANDED Mobile web payments

Thank you for your purchase! Please click the link below to download your ringtone.

BUY RINGTONE This ringtone will cost you 1,5 € and be charged on your mobile phone bill.

Buy Cancel

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2010-02-1221

IN-application PAYMENT

Buy the next level for €5,0 ?

Yes, give me more!

Cancel

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2010-02-1222

Application store experience

My Internet Services

- Use when I am mobile -

My Media Channels- RSS, podcasts, video, subscribe, personalize -

My Social Life- Stay in touch and

interact with my friends -

My Phone - Contacts, Calendar,

Inbox, Account self-care -

My Content - Purchased and

Created,Seamless backup -

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2010-02-1223

Device Provider Copy Cats Lining Up!

100MApplicationDownloads

MarketMarket

RIM pushes Applications w/o

Carrier notification

App WorldApp World

Leverage existing XBOX Live and Zune Market place

Windows® Marketplacefor Mobile

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2010-02-1224

It Works End-to-end

It’s In Your Face

It’s Engaging and Personal

It’s One Click to Discovery

It’s Cool and Tasty

The Perfect Store…

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2010-02-1225

ERICSSON Application store

DeveloperCommunity

Ericsson Appstore

Store Store Store

ContentProviders

Device Technology

PartnersMobileClients

PC

IPTVMobile

Browser• Co-operative

• Standard oriented

• Server centric

AppstoreManager

Currently delivered to multiple operators

http://images.google.com/imgres?imgurl=http://gearmoda.com/wp-content/uploads/2009/04/black-berry-app-world.jpg&imgrefurl=http://gearmoda.com/2009/04/rim-launches-blackberry-app-world-applications-store/&usg=__YapRIW047yPzMwkF8pKEKO9V1jc=&h=342&w=500&sz=154&hl=en&start=76&tbnid=HmJza6ZeN6T98M:&tbnh=89&tbnw=130&prev=/images%3Fq%3Dapplication%2Bstore%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN%26start%3D60

http://images.google.com/imgres?imgurl=http://www.ubergizmo.com/photos/2008/2/X1-sony-ericsson-468.jpg&imgrefurl=http://www.ubergizmo.com/15/archives/2008/02/xperia-x1.html&usg=__o1lFNEimon5LuJbbDmObFZ_UfMo=&h=810&w=468&sz=72&hl=en&start=21&tbnid=k9g55KRamrCV1M:&tbnh=144&tbnw=83&prev=/images%3Fq%3Dsony%2Bericsson%2527%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN%26start%3D20

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content and application sourcing

Long tail apps from developer

communities

ERICSSON application

store

’’Developers’’

Consumers & Enterprises

User generated content &

applications ApplicationsGamesWidgetsThemes, ringtones, wallpapers

Premium apps from developers

Content providers and aggregators

Apps from operators

(devloper comms, aggregators)

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2010-02-1227

Widgets- From Mass-market to High-end devices

W3C Standards Based (Web Runtime)

Opera is a strategic partner

W3C widgets can be built using Opera Widget SDK

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Business Support• Branding• Sale Channels• Customers• Business Model

Services• Verification• Certificate• Billing• Customer Care

Capabilities• Communication • Context• User Data • etc.

Technical Support• APIs• SDKs• Samples• Documentations• Sandbox• Social Networking

Developers

Partnership• Passion • Innovation• Consumer Understanding (as prosumers themselves)• Agility of Development• Extreme TTM

Consumers

User Viscosity• Enlarged Application Volume• Enhanced User Experience• Stimulated application download & network consumption

Application store Ecosystem

Operator

Interaction• Ranking• Feedback• Proposing

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Ericsson application storeEmpowers the operator to resell applications and content to a large segment of subscribers, by delivering to handsets and mobile platforms of different brands and technologies.

• Ericsson provides solutions for operators to build open application stores

• Right now Ericsson is on behalf of major operators looking for commercially available applications.

• eStore Developer Program offers innovative tools and helps developers to reach mobile consumers through operator distribution channels.

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2010-02-1230

Application CategoriesWe are looking for applications in the below categories

› Communications and Internet › Culture, Education and Reference Information › Hobby and Free-time › Business, Financial and Professional › Travel and Holidays› Community› Sports› Games› Home› Government› News› Commerce› Music› Publishing› Health› Broadcasting

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Application store baseline› Mobile Applications on multiple platforms– Java– Symbian–Windows Mobile– Blackberry– Palm – Android

› Widgets› Multi-lingual– For example English, Spanish, German, French, Portuguese, Chinese and

Japanese› Pricing (price group set by provider)– Free– Trial– Premium

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eStore Developer Program

› estore.ericsson.com

› Distribution Self Service for Applications–Publish and follow-up–Automatic pay-outs to

developers

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Developer benefits› Can sell content and applications to a market with more

than 1 billion potential users › Revenue share model with 70% to developer› Free tools for application development › Continuous benchmarking through our dashboard › Develop unique applications using network enablers

made available by operators.

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2010-02-1234

Application Submission Process

1. Registration: Developers can register as a company (based on VAT number) or a private person

2. Acceptance: All applications have to be approved by Ericsson before being accepted for commercial distribution

3. Submission: After an application has been accepted the developer can submit all application variants, meta-data and marketing material

4. Quality assurance: The technical quality of each application variant is tested on the corresponding device

5. Distribution: The developer has the right to select the markets where an application is available for distribution. The application price for each application is set by the developer in the local currency

6. Reporting and settlement: The developer can view all transaction and settlement data

Registration Acceptance Submission Quality Assurance Distribution Reporting

Settlement

Developers manage the full submission process by logging into a personal web portal

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2010-02-1235

Application Quality Assurance› Application providers are requested to comply with a list of quality criteria

› Quality assurance of applications includes:

Malware testing: All applications that are submitted to Ericsson are automatically scanned for viruses and other malware

Content quality: Content must comply with Ericsson’s content code of ethics and e.g. not contain racist, politically extremist or pornographic material

Technical quality: Applications must run without technical fault on the devices that is specified by the application provider

Localization quality: Localization testing includes review of text strings and other features that are specific for a market

› Ericsson performs continuous quality checks on the application portfolio to ensure that overall catalogue quality does not deteriorate over time

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the developer’s highway to make money out of application stores

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