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

1. The developer’s highway to make money out of application stores Elena FersmanEricsson

2. 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

3. What does a telecomnetwork infrastructure vendor do at Web 2.0?

4. Opportunity vs. Challenge of Telco Mainly APIs from Internet … ~1 new API/Day in ave. Very very few Telco apps … ~3 new Apps/Day in ave. The Telecom APIs are not so well explored yet = opportunity for developers

5. Web 1.0 Model Professional Author Provider Publish Push! Users = Consumers

6. Web 2.0 Model: User-Generated Content Provider Platform Share! Users = Authors

7. Web 2.0 Model: User-Generated Application Provider Services Create & Share! Users = Authors + Developers

8. Application Boom in Telco 2.0 Context The carriers controlled the network as well as the user experiences Popularity The Long-tail Model The carriers open up the network as well as the innovation Telco 1.0 Telco 2.0 Applications For consumers it’s much easier to find personalized services than before!

9. Telco 2.0 Strategy Mobile Application Trend Widgetization Mashup More building blocks and combinations lead to more possibilities and innovations. Applications become small, focused, portable, webified and always-on. Perpetual Beta The world cannot afford waiting. A good application should hit the market a.s.a.p. and get improved by use. Socialization User-Generated When Social networking is becoming a major element of people’s communication ‘habit’, mobile applications have no excuse to refuse. Collective wisdom is the essence of web 2.0. Nobody has better understanding of the users than the users themselves. • Winning Strategy: • Drive Telco innovation from Developers • Revenue by opening up the network to prosumers • Provide easy development & APIs

10. What Capabilities can Telco Offer? Context • Presence • Location • Device Capability • Terminal Status Communication User Data • Voice Call • Voice Mail • SMS/MMS • Conference • IM • Wap-Push • User Profile • Phonebook • Calendar • Browsing History • Mobile Social Networking Identity Content • MSISDN • IP Address • SIP Identity • Authentication • Aliasing • Privacy • Ringtone • Ringback Video • Photo • Video Payment • Carrier Billing • Balance • Credit

11. ISV Ericsson Developer Community Developer Community Ericsson Developer COmmunity • Market co-operation • Invitation to events • Innovation co-operation • Technology co-operation Partner • Free development tools • Technical documentation • Development advice and support • Go-to-market channel Members Everyone labs.ericsson.comestore.ericsson.com 320 000 registered community members

12. Ericsson Labs – Open Innovation Expose Beta Enablers/APIs Feedback Community Develop Apps

13. From idea to business Distribute ERICSSON LABS Commercial enablers API API Ericsson estore Graduate Beta Enabler Product Enabler Production Platform Best Effort Platform

14. Ericsson multimedia Brokering: IPX • Messaging • 350 operators • 96% of all mobile phone users worldwide • Subscriber Info • Location • Mobile Identification • Mobile IP Lookup • Operator offerings • Operator Payment &Connection Services • Payment • 25 countries • 2 billion subscribers • 90 operators

15. Operators developer interaction Operator Operator Operator Operator Operator Operator Content Provider Service Provider Developer Developer Content Provider Developer Content Provider Service Provider

16. IPX simplifies businessOne stop global connection and collection Operator Operator Operator Ericsson IPX Operator Operator Operator Content Provider Service Provider Developer Developer Content provider Service Provider Content Provider Service Provider

18. 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!

19. Price: 12,0 € AcceptReject Service Name:Saint Etienne – Only love can break your heartProvider:Ringtone FactoryMore information Thank you for your purchase! Please click the link below to download your ringtone. Mobile web payments BUY RINGTONE

20. This ringtone will cost you 1,5 € and be charged on your mobile phone bill. Thank you for your purchase! Please click the link below to download your ringtone. Cancel Buy BRANDED Mobile web payments BUY RINGTONE

21. IN-application PAYMENT Buy the next level for €5,0 ? Yes, give me more! Cancel

22. Application store experience My Media Channels- RSS, podcasts, video, subscribe, personalize - My Internet Services -Use when I am mobile - 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 -

23. Windows®Marketplace for Mobile Market App World RIM pushes Applications w/o Carrier notification Leverage existing XBOX Live and Zune Market place Device Provider Copy Cats Lining Up! 100M ApplicationDownloads

24. The Perfect Store… 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

25. IPTV Mobile Browser Mobile Clients Store Store Store Ericsson Appstore PC ERICSSON Application store Device Technology Partners • Co-operative • Standard oriented • Server centric Developer Community Content Providers Appstore Manager Currently delivered to multiple operators

26. content and application sourcing Premium apps from developers ERICSSON application store Long tail apps from developer communities Apps from operators (devloper comms, aggregators) ’’Developers’’ Content providers and aggregators Consumers & Enterprises User generated content & applications Applications Games Widgets Themes, ringtones, wallpapers

27. 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

28. Application store Ecosystem Capabilities • Communication • Context • User Data • etc. Partnership Technical Support • Passion  • Innovation • Consumer Understanding • (as prosumers themselves) • Agility of Development • Extreme TTM • APIs • SDKs • Samples • Documentations • Sandbox • Social Networking User Viscosity • Enlarged Application Volume • Enhanced User Experience • Stimulated application download • & network consumption Operator Developers Consumers Business Support Services • Branding • Sale Channels • Customers • Business Model • Verification • Certificate • Billing • Customer Care Interaction • Ranking • Feedback • Proposing

29. Ericsson application store Empowers 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.

30. 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

31. 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

32. eStore Developer Program • estore.ericsson.com • Distribution Self Service for Applications • Publish and follow-up • Automatic pay-outs to developers

33. 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.

34. Application Submission Process Developers manage the full submission process by logging into a personal web portal • Registration: Developers can register as a company (based on VAT number) or a private person • Acceptance: All applications have to be approved by Ericsson before being accepted for commercial distribution • Submission: After an application has been accepted the developer can submit all application variants, meta-data and marketing material • Quality assurance: The technical quality of each application variant is tested on the corresponding device • 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 • Reporting and settlement: The developer can view all transaction and settlement data Distribution Reporting Settlement Quality Assurance Submission Registration Acceptance

35. 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

37. Thank you for listening!Visit our booth 609