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mocoNews - Conference Call: Distribution Power And Network Capabilities Will Help Vodafone App Store Compete

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Dianne See Morrison
mocoNews.net
Tuesday, May 12, 2009; 4:59 PM

Vodafone (NYSE: VOD) announced earlier today that it was providing developers with software this summer that will allow them to create applications that will work across all of the phones their customers use, regardless of operating system or manufacturer.

In its conference call today giving more detail on its plans, Vodafone Europe head Michel Combes said he believed the carrier could compete against the app stores from handset vendors by being agnostic in terms of the operating systems it supported, and by offering developers the ability to bill customers on their phone bills, and access to location-based data that could help them create more tailored applications. He also singled out its distribution power, which would give developers access to 289 million customers. More details from the call after the jump.

Other details from the call:

Revenue-Split: Combes said it was a "fair assumption" that Vodafone would be offering "roughly around" the "industry standard" of a 70/30 split, with the carrier taking 30 percent of the sale. It hinted that some apps and developers might be getting a different split, though did not disclose what it would be.

Apps not just for smartphones: Vodafone's head of internet services Pieter Knook, who was also on the call, said its offering was "by no means confined to smartphones," and that while apps have inevitably been seen to be aimed mostly at them, the carrier expected mid-range handsets to be targeted as well as low-end ones. Since apps are to work across all handsets, customers will be able to keep their apps when they change handsets.

Approval process: Knook said that their will be a certification process around network capabilities, especially around location-sensitive apps to ensure that the developer is not misusing the information. Users will also have to certify that they agree to let their information be used for the app. Other than that, it sound like there will be no strict process such as Apple's much maligned one. Said Knook, "We see a pretty open environment?internet rules will apply." He added that the network would of course protect minors, and that because it knows from its billing relationship the age of the customer, it knows whom to restrict the access of certain apps.Apps won't be available across the board on the "get go": Though Vodafone says its plan is to be OS- agnostic, but its first offering of apps will be compatible with S60 devices and Symbian. "It will take some time to build out on different devices, but we are working on this right now," said Combes. It will add support for other operating systems such as Android at a later date.

Building on Vodafone Live heritage: Knook said its new effort would build on Vodafone's ten year old mobile content Live! portal, noting that it is already in the business of distributing apps, and that gives it a "big credibility factor" with developers.

Location-based apps: Location-sensitive apps will not be restricted to GPS capable handsets. Location data will be available for all handsets, including mid and low range ones and the apps will work across all of Vodafone's European networks when the user is roaming. Vodafone also confirmed that it will not charge for location data as they do now, but take a cut of the sale of the location-based app, which it assumes developers will charge for.

Related

Vodafone Unveils New App Store; Will Share Location-Based Data



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