Mobile App Stores for Telecom Operators The Next Battlefield

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Perspective   Pierre Péladeau
              Roman Friedrich
              Mohssen Toumi
              Olaf Acker

Mobile App Stores for
Telecom Operators
The Next Battlefield
Contact Information

Beirut                       Mumbai                         San Francisco
Bahjat El-Darwiche           Jai Sinha                      Karla Martin
Partner                      Partner                        Partner
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Roman Friedrich              Christopher Vollmer            Tokyo
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Frankfurt                    Mohssen Toumi
Olaf Acker                   Senior Associate
Principal                    +33-1-44-34-3131
+49-69-97167-453             mohssen.toumi@booz.com
olaf.acker@booz.com

                                                                                     Booz & Company
EXECUTIVE        The mobile applications business has grown exponentially in
                 just the past three years. On the back of the hugely popular
SUMMARY
                 iPhone, Apple’s App Store has quickly come to dominate the
                 market, but rivals such as Google, Microsoft, Nokia, and
                 Research in Motion Ltd. (RIM) are betting billions that they
                 can catch up. So far, telecom operators have been late to the
                 game. If they want to avoid the fate of becoming mere pipes
                 for the ever more popular app stores, they must devise and
                 implement strategies that take advantage of the very real assets
                 they possess.

                 Because of their limited customer          To capture these benefits, operators
                 bases relative to the massive numbers      have three options in building their
                 being put up by Apple and other            own app stores: “closed” storefronts
                 operating system vendors, operators        offering only apps that they develop
                 playing alone lack the inherent ability    or source themselves; “open” store-
                 to attract large numbers of applica-       fronts that offer access to third-party
                 tion developers to their own stores,       apps and app stores, with which they
                 and they lack experience in manag-         share revenue; and app stores for
                 ing open ecosystems of developer           phones other than smart phones, pri-
                 communities. What they do have are         marily in developing markets through
                 powerful brands, a strong relationship     SIM services. Operators are by no
                 with their subscribers, and the ability    means limited to any of these options;
                 to monetize that relationship. For         rather, they should pick and choose,
                 operators, the key is not to try to reap   depending on the OS and device
                 the direct revenues from app sales,        providers they partner with, and on
                 but rather to develop a strong apps        geography. What is critical is to ensure
                 offering that can help them increase       they play a key role as a retailer of
                 average revenue per user (ARPU),           apps by devising strategies—and
                 improve customer acquisition, and          executing them—now, before it’s
                 reduce churn.                              too late.

Booz & Company                                                                                    1
The success of Apple’s App Store         the increased use of their data services.
TELECOM’S                                  has been driven largely by the global    While many mobile operators have
OPPORTUNITY                                popularity of its iPhone. With more      tried to jump on the mobile apps
                                           than 35 million units sold since its     bandwagon by opening their own app
                                           inception in 2007, the iPhone is the     stores, they have not yet gained much
                                           linchpin of a entire ecosystem of        traction in the market. Are mobile
                                           products—from the OS X operat-           operators doomed to serve as little
                                           ing system to Macintosh hardware         more than bit pipes for ever-more-
                                           to consumer-friendly applications to     powerful manufacturers of smart
Here are some numbers sure to              Internet services like iTunes. Numbers   phones and their operating systems?
impress every corporate executive          like these are certain to attract com-   Mobile operators do indeed face real
looking for sources of new growth.         petitors, and indeed, the App Store’s    challenges in their efforts to partici-
Within 10 months of its launch in the      numbers have. We expect that more        pate in the fast-growing apps busi-
summer of 2008, Apple’s App Store          than 1 billion smart phones of all       ness, but we believe they can compete
had reached 1 billion downloads. The       kinds will be in use by 2013, driving    successfully if they can determine how
next billion took five more months;        increased usage of data services, with   best to position themselves within
then, just three months later, in          end-users spending as much as $22        the mobile apps ecosystem, develop
January 2010, customers had down-          billion on mobile apps, not including    the right strategies, and execute them
loaded yet another billion apps. Apple     additional revenues to be gained from    carefully. The best strategies must
doesn’t break out revenues for its App     mobile advertising in apps and games.    focus on capturing the customer’s
Store, but observers estimate that it                                               attention by becoming the entry point
could generate as much as US$3 bil-        So far, however, telecom operators       into the world of applications, not
lion in sales for Apple and its develop-   have not benefited from the popularity   on capturing revenues from applica-
ers in 2010.                               of mobile apps, other than through       tion sales.

2                                                                                                           Booz & Company
SUCCESS                                                What made Apple’s App Store take
                                                            off? First of all, the company had a
                                                                                                                geous deals with telecom carriers to
                                                                                                                offer iPhones, Apple found a way to
     FACTORS                                                head start—a powerful brand whose                   monetize its iPhone ecosystem with
                                                            customers had a strong emotional                    impressive efficiency. The result: a
                                                            attachment to its Macintosh comput-                 retail powerhouse based on key suc-
                                                            ers and its iPod and iTunes ecosys-                 cess factors that competitors are find-
                                                            tem. That degree of loyalty was only                ing very difficult to replicate.
                                                            deepened with the introduction of
     Apple’s success in the mobile apps                     the iPhone, thanks to its revolution-               Since Apple introduced the App Store,
     market was by no means predestined.                    ary design and interface. Attracting                lots of competitors have appeared on
     After the first mobile apps were                       developers to the App Store proved                  the scene—other makers of mobile
     introduced by independent players in                   easy with a generous revenue-sharing                devices, vendors of mobile operat-
     the late 1990s, any number of smaller                  agreement and easy-to-use develop-                  ing systems, telecom operators, and
     players quickly entered the market.                    ment tools and technical assistance;                independent app stores—with vary-
     But it wasn’t until Apple entered the                  the result was an explosion of rich                 ing degrees of success. No one has
     mobile app business, a year after the                  content, more than 140,000 apps in                  yet come close to rivaling Apple, in
     introduction of the iPhone, that the                   less than two years. Finally, by selling            part because every competitor has
     world came to understand its value as                  apps through its popular iTunes store,              to attract two audiences—not just
     a driver of both revenue    and smart-
                             . 7 values
                                                            with a readily available billing system,            customers but also developers—and
     phone sales (see Exhibit 1).                           and then in turn using the apps’                    few rivals to Apple’s App Store have
                                                            popularity to help make advanta-                    succeeded in doing so.
                                               100%          75%       50%       25%        lines     dots         criss-
                                                                                                                   cross
Typical
Business             Strategic
Deliverables         Objectives

9% Utility bills & services     IN THE NEXT 12 MONTHS, I INTEND TO REVERT BACK TO MY PRE-RECESSION BUYING HABITS IN THIS CATEGORY
                                                              (PERCENTAGE OF RESPONDENTS WHO AGREED)

     Exhibit 1
     The Evolution of Mobile Apps

       HOW MOBILE APPLICATION STORES HAVE EVOLVED

           Earlier            2007     2008         Q1/09          Q2/09     Q3/09        Q4/09        Q1/10

       Emergence
               GetJar                  PocketGear
                                                                                                    PocketGear                   Early pioneers, mainly
               Handango       SlideME                                                               acquires                     independent players,
               Handmark                                                                             Handango                     have little to no success
                               MobiHand
                      Mobango

       Take Off                                                                                                                  The game changer:
                                                Apple                                                                            linking the device to
                                                                                                                                 the apps

                                                                Android             Windows Marketplace
       Gold Rush
                                                                           Nokia Ovi        LG
                                                              BlackBerry                               Sprint
                                                                           Palm      PlayNow Arena                               New competitors hurry
                                                          Samsung Application Store      Mobile Market                           to stake a claim
                                                                    Bouygues Telecom
                                                         AppliStore                                Orange
                                                                                China Telecom
                                                        Verizon Wireless Media Store        SK  Telecom
                                                                                   O 360

     Source: Booz & Company

     Booz & Company                                                                                                                                          3
THE OPERATOR                              downloading data. As smart phones
                                          become more and more popular, data
                                                                                     consumption patterns—though iPhone
                                                                                     users are typically high-value custom-
ADVANTAGE                                 usage will only increase—and that, in      ers, much of the higher ARPU can be
                                          turn, will be the source of real revenue   attributed to their higher data usage.
                                          increases for mobile operators.
                                                                                     Reduced churn: As mobile apps
                                          But those added revenues will appear       become more popular, easy access to
                                          only if operators can acquire and          attractive app stores will likely help
Telecom operators looking to benefit      retain the customers most likely to        retain customers, especially as they
from the popularity of mobile apps        use their phones to download mobile        become more dependent on their
cannot expect to rival Apple in the       apps. Here is where the value propo-       device interfaces. If an operator with
revenue it generates from the App         sition for operators can be found—         25 million subscribers and an ARPU
Store. Nor should that be where           along with the risk. And operators         of €35 (US$47.40) can reduce churn
operators aim to participate, since the   that do succeed in offering customers      by just 1 percentage point, it can
potential incremental revenues are        attractive ways to access mobile apps      retain 250,000 subscribers who
so small. We expect that in 2013, all     will benefit in three ways.                generate about €100 million in
application store providers worldwide                                                revenue annually.
will capture just a 30 percent share      Customer acquisition: Easy access to
of overall apps revenues, or about $7     attractive app stores can attract new      The key for operators is to maintain
billion, with the remaining 70 percent    customers, as can customizing mobile       and strengthen their relationships with
going to developers. This is a drop in    devices to get customers to app stores     customers, more and more of whom
the bucket compared with the telecom      more directly, through exclusive deals     will view access to mobile apps as a
industry’s projected overall 2013         linking specific devices to app stores,    critical component in choosing and
revenues of $1.6 trillion.                much like Apple’s deal with AT&T for       staying with their operator. Thus,
                                          the iPhone.                                every operator must devise a strategy
The real economic value for operators                                                for incorporating mobile apps into
lies in the increased revenues to be      Higher ARPUs: Customers with smart         its offerings; those that do not come
captured through the rising use of data   phones that can easily access attractive   up with a winning strategy risk losing
services linked to mobile apps and        app stores are significantly more valu-    customers to rivals that do. Worse yet
the customer loyalty that app usage       able to operators. In the U.S., iPhone     is the possibility of losing the end-
has the potential to generate. Users of   users generate 1.63 times the ARPU         customer relationship to third-party
iPhones use their phones more than        of the average customer; in western        app stores, which would have poten-
other mobile phone users do, and          Europe they generate 2.45 times the        tially dire consequences for operators’
most of that extra time is devoted to     average. The difference lies in varying    core business.

4                                                                                                           Booz & Company
ATTRACTING                                            As we have seen, every player, includ-
                                                           ing operators, looking to build a
                                                                                                       at Apple’s App Store, for instance, is
                                                                                                       gaming, but it still constitutes just 17
     THE RIGHT                                             successful mobile app store needs to        percent of all available apps.
     AUDIENCES                                             attract two audiences: customers, of
                                                           course, but also the developers willing     Operators are limited in their ability
                                                           to create the critical mass of applica-     to generate the capabilities needed
                                                           tions needed to attract those custom-       to attract and keep a strong devel-
                                                           ers and keep them coming back for           oper community. Although there
                                                           more (see Exhibit 2). In addition to        is nothing holding them back from
                                                           the sheer number of applications avail-     offering developers attractive busi-
                                                           able, successful app stores need both a     ness terms—most app stores allow
                                                           constant source of popular new apps         developers to keep 70 percent or more
                                                           and a long tail of less popular applica-    of the revenue brought in by their
                                                           tions to maintain consumer interest.        apps—other factors are more challeng-
                                                           The most popular category of apps           ing. Managing a thriving developer

                                . 7 values

                                                 100%       75%      50%      25%      lines    dots      criss-
                                                                                                          cross
Typical
Business          Strategic
Deliverables      Objectives

9%

     Exhibit 2
     The Virtuous Circle in App Stores: A Strong Customer Base Attracts More Developers, and More Apps from
     Developers Attract More Customers

      Operators’ Strengths and Challenges in                                                           Operators’ Strengths and Challenges in
      Attracting Developers and Sourcing Apps                                                          Making Use of Customer Assets

                                                                                                            Powerful Brand & Marketing
                                                                                                            - Operators can benefit from their strong
            Quality Technical Support                                                                         brand in their local markets
            - Managing a developer community
              is a high-cost business
            - Operators are not used to the                                                                 Broad & Diverse Offerings
              software business                                                                             -The limited number of developers,
                                                                                                             fragmented across several platforms,
                                                                                                             limits the breadth of offerings
            High Reach & Exposure                                                                           - But in some markets, operators
            - Most operators have relatively                                                                  can leverage local content
              small subscriber bases,                   More Developers      More Customers
              compared to the global installed
              bases of many OEMs                                                                            Quality Storefront
                                                                                                            - By managing their networks, operators
                                                                                                              can improve the quality of their data traffic
                                                                                                            - Knowing customers’ needs and behavior,
            Generous Business Model                                                                           operators can develop friendly, locally
            - Operators can implement                                                                         relevant app stores
              revenue-sharing model similar                                                                 - But other app stores could also analyze
              to the market standard                                                                          customer behavior

                                                                                                            Easy Monetization Engine
                                                                                                            - Operators can use subscriber accounts
                                                                                                              for payment, making the process easy
            Natural Challenge           Natural Strength           Neutral
                                                                                                              for customers

     Source: Booz & Company

     Booz & Company                                                                                                                                      5
community and offering the high-             from their strong brands in their local            Monetization: Operators’ close
     quality technical support developers         markets and their ability to steer traf-           relationship with their customers will
     need is an expensive operation, and          fic to their app stores by customizing             allow them to develop simple pay-
     few operators have experience in the         devices to send users there directly.              ment tools, including direct debiting
     software business. And compared with                                                            of subscriber accounts and mobile
     makers of mobile devices or mobile           Quality of storefront: Because opera-              payment (m-payment) systems.
     operating systems, few operators have        tors have control over their networks,             Such tools would promote access to
     the huge global installed base needed        they can provide customers with dif-               app stores and smooth the buying
     to provide enough customers to               ferentiated offerings based on quality             process—a particularly attractive
     attract developers, unless they partner      of service. High data users could be               solution in emerging markets, where
     with other operators.                        given the option of paying more for                few subscribers have their own bank
                                                  reliable connections and downloads.                accounts.
     In contrast to their difficulties in         By the same token, operators could
     attracting strong developer communi-         leverage their local and operator-                 Based on these strengths, mobile
     ties, telecom operators do have the          specific capabilities to provide content           operators have several levers they can
     strengths necessary to attract a critical    such as mobile TV or telecom-specific              pull in devising a strategy to build an
     mass of customers.                           apps for uses such as consumption                  app store (see Exhibit 3). Operators’
                                                  tracking and service control.                      use of these levers will determine their
     Powerful brands and marketing                                                                   strategic direction for the future.
                           . 7 values
     expertise: Operators could benefit

                                           100%    75%      50%        25%         lines      dots       criss-
                                                                                                         cross
Typical
Business           Strategic
Deliverables       Objectives

9% Utility bills & services

     Exhibit 3
     Assets and Potential Levers for Operators in the Mobile Apps Market

                   ASSETS                                STRATEGIC LEVERS

                      Ability to Steer                   Steer Traffic toward Preferred Stores
                                            1
                      Traffic                            - Steer traffic through soft keys or other handset customization levers

                                                         Provide Own Applications
                      Local/Operator-
                                            2            - Provide apps utilizing operator-specific or local content (e.g., consumption
                      specific Content
                                                           tracking, TV)

                                                         Differentiate Service-level Data Packages
                      Control of Network
                                            3            - Create data packages based on partnerships with third-party app stores to
                      Quality
                                                           guarantee (for a premium) network quality for data-intensive apps

                                                         Provide Convenient Payment Tools
                      Payment Tools         4            - Be a monetization engine for third parties’ app stores through simple
                                                           m-payment systems

     Source: Booz & Company

     6                                                                                                                             Booz & Company
An App Store Consortium

One solution to the problem of attracting developers might be for
operators to band together, and two separate initiatives are intended to
do just that. A group of four mobile operators—China Mobile, SoftBank,
Verizon Wireless, and Vodafone—has made plans to create the Joint
Innovation Lab (JIL). By bundling all of its customers into one large
audience, the JIL hopes to persuade developers to create rich content of
all kinds.

The second effort involves a consortium of 24 mobile operators, called
the Wholesale Applications Community (WAC), to allow developers to
distribute applications across a number of delivery platforms through
a single point of entry. As with any consortium, the challenge will be to
coordinate the WAC’s numerous partners and their many, sometimes
competing initiatives; if the WAC can overcome that, it will have created a
very substantial audience with which to attract developers.

Both initiatives are supported by a number of handset manufacturers,
including LG Electronics, RIM, Samsung Electronics, and Sony Ericsson.

Telecom operators have the
strengths necessary to attract
a critical mass of customers.

Booz & Company                                                                7
WORKING       Despite the many considerable assets
              operators possess in their efforts to
                                                      integration with Apple’s own App
                                                      Store and controlling stake in the
WITH THE OS   compete in the mobile apps markets,     market, the iPhone offers little in the
              perhaps the most serious challenge      way of opportunities for operators
              they face is their lack of control      to benefit. Operators that have
              over the many mobile operating          made deals with Apple to offer the
              systems running on the vast number      iPhone have certainly seen increases
              of different devices available to       in subscribers. Other possibilities,
              consumers. No matter what app store     however, may be limited to developing
              strategy they devise, operators must    iPhone-specific applications that are
              take this diversity—and the different   close to operators’ core business,
              market dynamics of each OS—into         such as mobile TV for subscribers, or
              account, pulling different levers       devising differentiated service-level
              depending on the OS.                    plans for iPhone users who consume
                                                      lots of data.
              iPhones: Despite accounting for 11
              percent of the mobile device market     BlackBerrys: The popular BlackBerry
              in 2009, the iPhone accounted           offers more opportunities for
              for two-thirds of the mobile            operators. As with the iPhone,
              apps downloaded. Given its tight        operators could develop their

              No matter what app store strategy
              operators devise, they must take into
              account the vast number of different
              devices available to consumers.

8                                                                            Booz & Company
own subscriber-specific apps, and         forms. The simplest form would            Mobile, with more than 500 million
differentiate traffic from applications   provide subscribers with access to the    subscribers, is planning to launch its
or subscribers by service levels. They    thousands of apps offered at other        own smart phone equipped with a
could also offer their monetization       stores, perhaps including tools to        customized OS to be supplemented by
engines to the BlackBerry store,          smooth the purchasing process.            the operator’s own app store.
although we believe it could be more
appropriate for them to include           Operators could also build their          Non-smart phones: Mobile devices
BlackBerry apps in their own app          own stores, offering apps developed       that don’t offer the latest Web-surfing
stores in order to retain customer        for a variety of systems, as well         and apps capabilities of smart phones
ownership.                                as subscriber-specific apps for           provide a further opportunity for
                                          local content or data consumption         operators, especially in emerging
Other operating systems: The app          management. Ambitious operators           markets, where their use is most
stores landscape in other operating       could also build a niche for themselves   common. Smart phones make up no
systems, including Android, Symbian,      by providing differentiated content       more than 10 percent of all mobile
and Windows Mobile, is more               through customized apps targeted to       devices in these markets. In addition,
fragmented, with many players—            specific customer segments.               end-users may see little need to pay
equipment manufacturers, operators,                                                 for entertainment apps, given the
and independents—having their own         The most complex option would             prevalence of piracy. However, users
app stores, although the OS owners        involve an integrated strategy, in        do see the high value that certain
have the richest ones at the moment.      which an operator would offer its         practical apps—such as e-government
This fragmentation potentially gives      own smart phone, and partner with         (perhaps funded by local governments
operators more freedom of movement        the maker of the phone’s OS to            themselves), health, and education
in the mobile apps space. In this case,   develop its own app store, and the        services—can bring to them.
operators could potentially have a        apps to go with it. The success of this   Operators could also leverage the
right to win by building their own        option would depend on generating         increasing development and spread of
app storefront, provided they can         the critical mass of apps needed to       m-payment services in these markets
feed it with apps from developers.        attract more developers and, in turn,     to monetize their applications.
This storefront could take several        more customers. For instance, China

Booz & Company                                                                                                            9
Closed storefront: The first possibility   keys and other links, and revenues
THREE                                      is to build a closed storefront that       would be shared with the third-party
STRATEGIES                                 offers only applications developed         partners. An open arrangement
                                           or sourced by the operator, and            would allow operators to provide
                                           competes head-on with third-party          their subscribers with access to the
                                           app stores; examples include Orange        large and diverse catalogs of apps
                                           and Telefónica. These storefronts          available on a variety of OS and
Setting the iPhone juggernaut aside,       could be integrated with a specific        device platforms, while avoiding the
the world of mobile apps is highly         device, like the iTunes App Store with     challenge of building a developer
fragmented, with no app store              the iPhone. In this case they would        community on their own.
yet owning a significant share of          depend on the creation of a mobile
the market. That presents a real           device in combination with dedicated       SIM app store: Finally, operators
opportunity for mobile operators           apps; both Vodafone and China              could build a SIM app store for
looking to get into the business.          Mobile have taken this approach. The       phones other than smart phones.
Operators can leverage their               storefronts could also be tailored to      This strategy is especially attractive
relationships with subscribers by          niche markets, dedicated to a specific     for operators that want to gain a
following one of several strategies, all   handset, OS, or customer segment,          competitive edge in emerging markets
of which are designed to aggregate, to     such as teenagers.                         by offering attractive apps along with
varying degrees, the quickly growing                                                  workable m-payment solutions. An
number of third-party apps already         Closed storefronts might also contain      added bonus: These markets are not
available. Each of these strategies        special areas featuring apps for which     yet on the radar screen of the large
depends on one or more of the assets       developers pay a premium for greater       independent app stores, since more
that operators can leverage in pursuit     visibility or apps being promoted to       than 80 percent of the world’s smart
of an app store play, and they can be      particular user segments, as identified    phones are located in developed
tailored to the device and operating       through customer intelligence. And         markets.
system under consideration. It is          they would also offer convenient
conceivable that all of them could be      purchase models via customer               No matter which strategy an operator
carried out simultaneously, depending      accounts or instant m-payment              chooses, the key is to offer subscribers
on device and geography.                   solutions.                                 a quality storefront they will be happy
                                                                                      to return to, and to build into the
In every case, the key for operators       Open storefront: An open storefront        storefront the features that will help
is to maintain the relationship with       would offer access to third-party app      the operator maintain its relationship
end-users if they want to avoid being      stores, in addition to the features and    with subscribers and generate
relegated to a mere bit pipe.              components of a closed storefront. An      incremental revenue at the same time
                                           easy interface would facilitate access     (see “Components of a Successful App
                                           to third-party stores through soft         Storefront”).

10                                                                                                           Booz & Company
Components of a Successful App Storefront

Local content: Apps and other services designed for subscribers in
particular geographies served by the operator. Examples include mobile
TV, news, and information. Local content may be especially successful as
part of SIM-based app stores in developing markets.

Operator-specific apps: Apps intended to help subscribers manage their
relationship with the operator, including account management; billing;
and voice, message, and data consumption, as well as services such as
mobile TV.

Premium apps: Apps that are given premium placement on the storefront
in exchange for payment by their owners.

Apps catalog: A collection of apps sourced through partnerships with
developers and companies promoting apps, which could be paid for
through revenue-sharing agreements.

Payment: Tools that allow users to pay for apps and services through
convenient m-payment solutions or through their mobile accounts.

Mobile advertising: Space on app storefronts or within apps themselves,
sold by operators to advertisers, with content often keyed to the current
interests and browsing habits of subscribers.

Gateways to third parties: Links to other app stores owned by third-party
apps developers, OS owners, device makers, and independents—
redirecting traffic to cobranded spaces in third-party stores, for example.

Booz & Company                                                                11
CONCLUSION   As the competition to provide
             consumers with more and better
                                                       ARPU, and improved subscriber
                                                       acquisition. Succeeding in this arena
             mobile apps heats up, telecom             requires operators to master the
             operators run the risk of becoming        business of retailing mobile apps
             mere conduits to the successful           and getting access to a large network
             app stores of others. To avoid that       of developers or partners, in order
             fate, operators must play the game,       to feed their subscribers with large,
             building storefronts attractive enough    regularly renewable catalogs of apps.
             to maintain the critical relationship
             with their subscribers. The real upside   The mobile apps business is moving
             for operators, beyond targeting           and evolving quickly. Operators that
             additional revenues from selling          act now stand to reap significant
             apps, is churn reduction, increased       advantage.

12                                                                           Booz & Company
About the Authors

Roman Friedrich is a           Olaf Acker is a
Booz & Company partner         Booz & Company principal
based in Düsseldorf and        based in Frankfurt. He focuses
Stockholm. He leads the        on technology strategy for
communications, media,         communications, media, and
and technology practice in     technology companies.
Europe, and specializes in
the strategic transformation   Mohssen Toumi is a
of fixed-line and mobile       Booz & Company senior
communications, technology-    associate based in Paris.
based transformation, and      He works primarily with
sales and marketing in the     high-tech companies
communications, media, and     and telecommunications
technology industries.         operators. His focus areas
                               include growth, innovation,
Pierre Péladeau is a           sales and marketing, and the
Booz & Company                 development of technologies
partner based in Paris.        in emerging countries.
He works primarily in
the telecommunications,
media, and high-technology
industries. His focus
areas include strategic
transformations, operating
models, growth, innovation,
sales and marketing, and
technology strategies.

Booz & Company                                                  13
The most recent             Worldwide Offices
list of our offices
and affiliates, with        Asia                Bangkok        Helsinki    Middle East     Houston
addresses and               Beijing             Brisbane       Istanbul    Abu Dhabi       Los Angeles
telephone numbers,          Delhi               Canberra       London      Beirut          Mexico City
can be found on             Hong Kong           Jakarta        Madrid      Cairo           New York City
our website,                Mumbai              Kuala Lumpur   Milan       Dubai           Parsippany
www.booz.com.               Seoul               Melbourne      Moscow      Riyadh          San Francisco
                            Shanghai            Sydney         Munich
                            Taipei                             Oslo        North America   South America
                            Tokyo               Europe         Paris       Atlanta         Buenos Aires
                                                Amsterdam      Rome        Chicago         Rio de Janeiro
                            Australia,          Berlin         Stockholm   Cleveland       Santiago
                            New Zealand &       Copenhagen     Stuttgart   Dallas          São Paulo
                            Southeast Asia      Dublin         Vienna      DC
                            Adelaide            Düsseldorf     Warsaw      Detroit
                            Auckland            Frankfurt      Zurich      Florham Park

Booz & Company is a leading global management
consulting firm, helping the world’s top businesses,
governments, and organizations.

Our founder, Edwin Booz, defined the profession
when he established the first management consulting
firm in 1914.

Today, with more than 3,300 people in 60 offices
around the world, we bring foresight and knowledge,
deep functional expertise, and a practical approach
to building capabilities and delivering real impact.
We work closely with our clients to create and deliver
essential advantage.

For our management magazine strategy+business,
visit www.strategy-business.com.

Visit www.booz.com to learn more about
Booz & Company.

©2010 Booz & Company Inc.
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