Broadband

Mobile broadband is not just about the handset and the connection but also what people can do with that connection.

If proof were needed one need only look at the success of the iPhone App Store which Apple founder Steve Jobs claims achieved 100m downloads of games and applications within just two months of its July launch.

It is not surprising, then, to hear that Apple’s rivals are planning a response. Google’s Android Market is being revamped ahead of the launch of the G1, with T-Mobile, on the 30th October and Rim has announced its Application Storefront will be launching next March.

Behind these predictable moves O2 is quietly building what will be the equivalent of an application store, only it will not be tied in to a particular device but instead will be offered for any handset connected to its network and, ultimately, any device running on any of Telefonica’s many networks around the world.

The O2 Litmus project is due to be unveiled before Christmas. The network is on the verge of starting to recruit small mobile application start up companies to consider developing applications and games for its platform.

It is an interesting move because it is the mobile phone networks that have largely been seen as responsible for application writers flocking to the device manufacturers. Typically a mobile phone network would take months to approve code in an arduous process that would cost a developer tens of thousands of pounds. Even after this, a network would still expect to take a slice of any sales revenue.

Hence, when Apple offered to work with developers for free, pass or decline applications in just a few days and then fund the process by taking a third of eventual sales revenue, once the writers had started to make money, it is no surprise to hear its App Store took off. (Editor’s note: Apple’s approach has not been universally accepted, and developers from existing mobile platforms such as the BlackBerry will be quick to point out the problems with Apple’s ability to veto applications).

O2 is now hoping to make up for lost time and the head of its Litmus service, James Parton, reveals that, in some part, the network is admitting that it, like its rivals, has not always offered application writers the best deal. Hence, with Litmus, there will be no up-front charge for developing for the platform although, once an application is approved, there will be a “commercial discussion” about a revenue share.

Parton believes the network will be offering value for developers by not charging up front but also by providing access to test panels of customers who can give quick feedback on an application and its pricing before it is launched. Ultimately, the benefit will be that services are not limited to one device but can be used across the O2 network and, ultimately, on any Telefonica network.

“With Litmus we’re holding our hands up and saying we’re best off out of the equation and leaving developers with all the ideas and innovation to access our customers with our help,” he says.

“It’s true that developers can go the device route through something like App Store but our point is one of quality and access to our customers for testing so they can get the service and pricing right. We’re also offering a whole range of professional services developers can purchase to tap in to our insight of our customers.”

Parton believes O2 is the first network to make a major move to react to the sudden dominance of Apple and, potentially, Google with their application stores. He believes the extra reach offered by a network will one day be improved to cover all mobile networks, or at least several, so rather than write for one device or one family of devices, application writers will be able to sell a single application across several networks, vastly increasing their potential market.

Tags: apple, litmus, Mobile Broadband, O2