LIVE FROM APP PLANET FORUM AT THE GSMA MOBILE ASIA CONGRESS 2010: China Mobile today described its Mobile Market content store as a “strategic pivot” in its efforts to transform its business to address challenges from new entrants to the mobile sector, and to avoid ending up as a “dumb pipe” operator. According to Wang Hongu, Deputy General Manager of the Data Services department at China Mobile, as companies such as Google and Apple look to stake their claim on the mobile market, and handset vendors also look to ramp-up their value added services portfolio, “new competition arises at all sections of the value chain. And the key is how to meet customers’ ever changing needs.”

In her presentation, Wang said that “applications have become the key to attracting customers. Customers look for various applications which are rich and colourful, easy to select and use.” App stores were described as having “big business value,” with market forecasts giving a global market value of US$30 billion in 2013 cited.

With Mobile Market, China Mobile is looking to offer a “shopping mall” with a range of apps and content available for a wide range of handset models. The ability to offer content across a diverse range of terminals and operating systems was described as a “common challenge affecting operators.” Wang highlighted the standard portfolio of attributes offered by operator stores which also form part of the China Mobile proposition, including subscriber analytics and operator billing, as well as its customer base of more than 450 million customers.

By October 2010, China Mobile had signed-up more than 50,000 registered developers for its app efforts, with 42,000 apps available. It boasted of 150 percent quarter-on-quarter growth in registered users and 100 percent growth in application downloads, although absolute figures were not given for these metrics.

From November 2010, Mobile Market is supporting JIL widgets (which are being evolved in line with the Wholesale Applications Community specifications) with Mobile Market, which it says will aid its ability to engage with the international developer community and offer customers high-quality products. It says that as a WAC member, it intends to “actively improve WAC’s business model to enable both app developers and operators to benefit.” The company has also partnered with Nokia to offer a dual brand store integrating Mobile Market with the vendor’s Ovi proposition.

The focus on China Mobile’s apps efforts comes against a backdrop of increased mobile internet penetration in the country, with the operator stating that for more than six years it has seen data traffic growth of more than 100 percent year-on-year, with mobile data service revenue growing at more than 35 percent. At the end of September 2010, it had 402 million mobile data subscribers, a year-on-year increase of 33.4 percent. A number of drivers for the improving take-up of mobile apps were identified, including increased penetration of smart devices, pre-installed app stores being included on handsets, and the increased availability of “valuable apps” which appeal to users.

The operator has highlighted several efforts intended to increase the number of apps available to its customer base. It is looking to increase its engagement with overseas developers, stating that it will actively explore relationships with “excellent foreign developers” to make products available in the Chinese market. It is also undertaking its Mobile Market Million Youth programme to focus on young developers within China, working with colleges and universities in the countries to identify promising app developers.