Skip to Content

Mobile developers to carriers: Please get out of the way

Text SizeAAA

Filed under: Technology, Apple, AT&T

More

At the GigaOm Mobilize conference in San Francisco Thursday, a panel of CEOs and consultants seeking to monetize the mobile Internet had a clear message for big carriers: Please get out of the way.

"There are huge numbers of users who desperately want to use mobile but the right data plan is not available yet," says Mark Curtiss, CEO of mobile dating and flirting applications/social network Flirtomatic. Curtiss cited a recent Friday when British telecom Vodafone offered a window of 24-hour free data service to customers. "Registrations went through the roof," says Curtiss.

He acknowledges that free is not a sustainable price for data services but feels there must be a happy medium. Carriers, traditionally, have viewed data services -- namely, mobile Internet services -- as their growing cash cow. For example, AT&T (T) has posted markedly faster growth in its data services revenues, due to the high level of mobile Internet usage by iPhone customers. But that view has also resulted in data packages that can easily double the cost of a monthly wireless bill.

In comparison, typical wireless bills in Asia, where use of the mobile Internet actually eclipses use of PCs for Web access, are much lower and tend to have unlimited monthly data plans for a smaller amount of money. Asian carriers have been able to make money by taking a slice of a slew of new wireless services such as games where users buy additional weapons or points to get to a higher level.

The U.S. mobile app developers think that making mobile data cheaper would actually result in a bigger revenue pay with a larger gross amount of the carriers. This could be particularly important for the big carriers as they sink billions of dollars in the U.S. into upgrading mobile networks. Another key change would be for carriers to hand over a larger chunk of the revenue pie to mobile application companies. Apple (AAPL) gives roughly 70 percent of the revenues for sales of iPhone apps back to developers. In comparison, large mobile carriers give a fraction of that amount back.

Already these CEOs claim that carriers are starting to see the light. Verizon (VZ), Vodafone (VOD) and others are beginning to offer richer development tools and better access to developers seeking to build rich and innovative apps for mobile networks. "This is a seismic shift. There was a point in time when they viewed themselves as entertainment companies. They are starting to view themselves more as an distribution company," says Adam Zbar, CEO of mobile social network application company Zannel. The faster that the carriers realize the content and application creation is best left to others, expresses Zbar and others, the faster the Mobile web will be able to generate real revenues beyond paying for data delivered without wires.

Reader Comments (Page 1 of 1)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

Interest Rates

5/1 ARM+4.06%APR: +3.75%
30 Yr.
Fixed Mort.
+5.03%APR: +5.16%
$30K
HELOC
+8.00%APR: 0.00%
30 Mo
New Car Loan
+6.77%APR: 0.00%
1 Yr. CD+1.57%APR: +1.58%
DailyFinance Writers
Melly Alazraki Melly Alazraki Financial writer and analyst
James Altucher James Altucher Financial columnist
Jeff Bercovici Jeff Bercovici Media columnist
Jonathan Berr Jonathan Berr Financial writer and media columnist
Mercedes Cardona Mercedes Cardona Retail reporter
Tim Catts Tim Catts Financial writer
Peter Cohan Peter Cohan Author, venture capitalist and financial writer
Carrie Coolidge Carrie Coolidge Financial writer
Lita Epstein Lita Epstein Financial writer
Sam Gustin Sam Gustin Technology Writer
Nikhil Hutheesing Nikhil Hutheesing Tech and investing editor
Joseph Lazzaro Joseph Lazzaro Markets and economics writer
Latif Lewis Michelle Leder Financial Columnist
Latif Lewis Latif Lewis Business news editor and management columnist
Anthony Massucci Anthony Massucci Senior writer and tech columnist
Doug McIntyre Doug McIntyre Business and investing news writer and editor
Michael Mercurio Michael Mercurio Managing Editor
Todd Pruzan Todd Pruzan Features editor
Michael Rainey Michael Rainey Editor and economics writer
Alex Salkever Alex Salkever Senior technology writer
David Schepp David Schepp Business News reporter
Matthew Scott Matthew Scott Investing reporter and editor
Dan Solin Daniel R. Solin Author, investment advisor and retirement expert
Amey Stone Amey Stone Executive editor
Bruce Watson Mark Svenvold Columnist, renewable energy
Russel Turk, M.D. Russell Turk, M.D. Healthcare policy columnist
Bruce Watson Bruce Watson Features Writer
my portfolios

Find out why more people track their portfolios on AOL Money & Finance than anywhere else.

Create a New Portfolio My Portfolios

Daily Finance Partners

More from the Weblogs Network