Comments on: Business Challenges in Mobile Application Development

By: Jyothirmayee Pola

Jyothirmayee Pola — Mon, 29 Jun 2009 05:23:42 +0000

Hi Amit, Just for your information: I am working for a company mFormation Technologies Inc which does this bundling. We have many customers across the world from developing countries also. Check our company website www.mformation.com

By: Jeff Brandt

Jeff Brandt — Wed, 20 May 2009 22:00:13 +0000

As a provider of mobile application and someone who has been developing telephony since twisted pair. The market will have to settle down before real business models can be successful. Most to the app sell for what they are worth, not much. Most are hacked together with no thought at all. You are not going to see much more sophistication in the applications until there is some revenue to be made. We will just have to give it a few years until the market shakes out and kids get a new toy.
Jeff
http://www.motionphr.com
http://www.mymedbox.com

By: raju sastry

raju sastry — Wed, 06 May 2009 02:08:34 +0000

The issue here is that, there are no formidable companies who are developing applications. and also there no such compelling applications which consumers could really go and buy for themselves. most of the applications developed by developers are dependent on the following points.
1. the platform is continuously evolving. an application working in one platform will not work in the same fashion in the upgraded version.
2. If the application is an end to end solution, the developer has to tie up with the other stronger eco partner and find a solution.
these issues have made application developers vulnerable and hence they are being bullied by operators… same operators pay whatever when a formidable partner comes on board and revenue shares go otherwise…
3. The IT giants like Infosys, TCS etc have not really looked at mobile platforms for productivity and transactional applns. once this happens, the rev shares will automatically correct and developers will have better opportunities.
the mobile manufacturers also to be blamed as they have been only selling devices and not given enough focus on building developer community and its development.Some manufacturers started this long time back..like nokia, but the focus was more to popularise the SDKs but not to help get business for developers. Qualcomm did some good job through their BREW platform but it is only in CDMA area. The eco systems like Imode (DoCoMo) is required to galvanize the market.
things are changing and I think application developers will have good future as we move forward ( arpus going down, operators started focusing on non Voice revenue and this should entice few big companies to get in and develop the market)

By: Jalal Aslam

Jalal Aslam — Fri, 01 May 2009 14:51:47 +0000

Dear Mohit sahib,
Another great post by you. I think your deep industry insight is truly reflected in your posts.

In my humble opinion, to know which application does well:we should also not forget the business/in office usage trend of mobiles and mobility.In my opinion a mobile/palmtops’ interfacing with other devices, such as printers,desktops or laptop should also be researched and consumer advocacy groups. Another in my opinion,big factor as the world moves towards a green and collaborative web 2.0 work/office environment is how people use mobile/laptops during office hours.
I think with the multiplicity of devices certainly the developer’s tasks is very difficult, however if the ecosystem of the PC-world is projected onto the mobile world (with offcourse the device storage-limits).
In my opinion in the economies of scale markets such as China & south asia,language is the major factor.Any application that is usccessful in such economies is bound to be beneficial for all.
About sharing of revenues,I think we must follow a path of standardization that is localised and try not to implement all the solutions for revenue sharing across the board.For instance in economies of scale we cannot afford to implement a business/revenue sharing model which drives the up,as this shall make the application almost unwanted.
I think once again the role of the MVNOs,once again should come into the focus plus & plus the debate WiMAX or LTE is still very relevant here,as the backhaul costs increase due to increasing broadband demand, a time will come when literally MVNOs (esp. data MVNOs) shall choose which backhaul to choose or switch to if they are not satisfied with the speeds, this case is similar to western Europeans choosing which electricity utility they want right away by just a phone call.

By: djkoeman

djkoeman — Fri, 01 May 2009 10:49:31 +0000

Allow me to respond to your suggested solutions:
Develop and nurture open platforms: that has been tried and failed miserably. stakes for individual players (MNO’s, OEM’s, ISP’s and ASP’s are simply too high, too much at risk.
Set up independent test agencies: very good idea, but who will pay them? The application developer?
Device vendors would do well by restricting the number of models: sure, that’s what the OEM’s want as well, ideally 1 handset that will get them maximum market share. It just won’t happen…. Look at the car industry or any other industry for that matter…
Ensure better revenue share: that’s where I would put my money. If people are willing to pay 5€ for a game, I’m sure they are williing to pay more than 99 cents for a GOOD application
Multi-country carriers like Vodafone, Telefonica, MTN, etc. should work towards standardization: they are already doing that.
Application developers should invest in consumer research and quality processes: definitely, see my comment above. Only for good and stable applications, people are willing to pay a premium
The fragmented developer community needs to consolidate: maybe, yes. That’s what happened in the games development world as well…..

By: Alexander Gregori

Alexander Gregori — Thu, 30 Apr 2009 21:08:30 +0000

Mohit you are right that not much money is left if one has to share with too many parties. When paying for an app or content via the network provider then they, together with aggregators, take the lion’s share.

Alternative mobile payment solutions are called for, not only in terms of full on mobile banking. Have a look at http://mymobworld.com/mymobworld-launch.php for an easy but cost effective payment solution, where US$1 spent by the consumer is US$1 earned, and this is only split between platform provider and content provider.

Kind Regards
Alexander Gregori

By: Andy Hamer

Andy Hamer — Thu, 30 Apr 2009 06:48:08 +0000

Three issues that immeditately come to mind are fast broadband speed, network capacity (some network operators have concerns over their ability to deliver to all those user that want to use the internet particularly with bandwith hungary requirements – thats why they are interested in Fermocell technology to divert traffic on to the fixed network) and customise the applications for mobile devices (they need to be modified to meet the limited screen size and restricted keyboard access). Otherwise I think its going to be a massive growth market.

By: Amit Aggarwal

Amit Aggarwal — Tue, 28 Apr 2009 18:08:47 +0000

Nice article .. Quite a good coverage ..! But i believe things are changing on few fronts

1) Applications are moving out of operator’s space to open space ..a lot of applications are developed today by independent developers or development houses against the custom apps done for operators. Though western operators are providing their ecosystems to host, buy and download apps, majority if mobile subscribers are still in the other parts of the world and there is no such thing.

2) Maturity is coming in developer community. As a result, we see robust and reliable applications coming out in less amount of time. We even see mobile devices being turned into small processing units and used as components in complex systems ( example, a mobile phone being used as a router or a location information processor).

3) Mobile development is slowly moving away from open source native apps to Web based, what we call Mobile Web. More handset vendors support same web runtime with exactly same standards and specifications than KVM running in mobile phones. It means, a simple widget developed will work across more devices with less porting required.

4) Developer community is becoming stronger. Mobile development being a relatively younger discipline has bigger and better connected communities with a lot of participation from operators and handset vendors. Beta SDKs are released to developer community in advanced. Device loaner programs help to try out new devices with latest hardware and software support.

Only thing which is not moving in right direction as per my opinion is, operators in developing countries taking control of handsets. This is a model long followed by west but monopolistic and highly prohibitive in development and innovation of handset industry. Airtel, China Mobile, Vodaphone etc ..all want to have deal directly with handset vendors, buy phones in bulk quantities, bundle them with their services and software, sell them to customers.. ..!

By: Siddhant Garg

Siddhant Garg — Tue, 28 Apr 2009 11:38:44 +0000

What is spoken in depth in this article is more from the handset point of view. I think that this is just one side of the coin.

While talking about mobile applications, we should also cover the aspect from the Network side as well. The challenges faced by application developers to write network side VAS applications is equally high. This involves an indepth understanding of the network elements like – MSC, gMSC,SMSC, HLR, Signaling, TDM , SIP etc. and their complexity

This results in higher resources utilization, in terms of time and money for creating such applications.

The carriers are faced with the challenges with dropping ARPUs and thus roll out newer VAS Applications to increase their revenue streams from subscribers.

Carriers today expect to be able to roll out atleast one newer VAS application per month. This means a lot of investment on their internal resources and kost opportunity costs incase of delays.

There is a strong need for a software framework / toolkit – that will wrap almost all existing network side telecom technologies within it and offers easy to use GUI for application development

One of the leading providers of such a framework is – AMDALE TECHNOLOGIES PVT. LTD, who offer a platform – PowerConnect(tm) which is a 100% GUI interface toolkit and offers extreme ease of use to application developers for developing / modifying newer network side VAS and Customer Care applications.

For more details – you can send email to ‘sales@amdale.com ‘