Nokia, the world's largest cell phone maker, is under assault as companies like Apple challenge it in the increasingly popular smartphone market.
The Finnish device maker says it's fighting back with its own cool phones and an Internet services platform called Ovi that will allow consumers to buy digital content, such as music and videos, get maps for navigation service, and manage contacts and photo files online.
Niklas Savander, Executive Vice President, Services
(Credit: Nokia)The Ovi storefront is now up and running in eight countries: Australia, Germany, Ireland, Italy, Russia, Singapore, Spain, and the United Kingdom. And as of May it was available on an estimated 50 million Nokia devices across more than 50 Nokia phone models, including the flagship Nokia N97.
In available countries, customers can access the Ovi Store by selecting the Ovi Store icon in the "Download" folder on their device. The mobile client is available in English, German, Italian, Russian, and Spanish.
In May, Nokia said that AT&T plans to make Ovi Store available to its customers in the U.S. later this year. So far, it hasn't come yet.
CNET News recently sat down with Niklas Savander, Nokia's executive vice president of services, to get the latest scoop on Ovi and to hear more about Nokia's services strategy. In a candid interview, Savander shared his thoughts on everything from lessons learned from Apple to why the Ovi store still isn't available on AT&T's network.
Q: Nokia has had a services business for a long time. But with all the hype around the iPhone and Apple's App Store, you'd think that Apple was the first to have an application storefront. What do you think about that?
Savander: Actually, we had our own application store three years before Apple did. But I have to give Apple credit. They taught the industry a painful lesson. First, you need discoverability. The App Store is right there on the iPhone. It's not hidden in some menu. It's very prominent. Also the billing is done automatically through the iTunes account. Apple already knows who you are when you come to the App Store because you have to activate it through iTunes. And the third thing is that it is a very good implementation of an app store. And it works very well.
So are you saying that Nokia didn't do these things?
Savander: We were falling short on all three. Take our download service. Every carrier had one, too, and the stores and the applications were not easy to discover. It was cumbersome to register. And the implementation was limited by the device software platforms. Believe me, I've had long discussions about this with my team. It's disappointing that we needed a company external from the industry to shake us off our comfortable path. The App Store came along and we had to accelerate our own plans.
I have to admit I wasn't really sure what Ovi was when Nokia first talked about it over a year ago. It seemed a bit confusing. Can you briefly explain what it is?
Savander: There was a reason to go out with the Ovi story early, but in hindsight we probably went out too early.
Phone giant AT&T sees big opportunity in building its own applications.
The phone company Wednesday announced it's buying privately held Plusmo for an undisclosed sum to help it build widgets and apps for mobile phones, PCs, and TV. Details of the transaction were not available.
Plusmo builds applications and widgets for mobile phones. But because it uses common Web development standards it should be easy for AT&T to use its technology to build applications across multiple operating systems. Once the acquisition is complete, Plusmo will become part of AT&T Interactive, AT&T said in its press release.
While most people don't think of AT&T as an application developer, the company has developed some of its own mobile apps. For example, it has developed several apps for the iPhone App Store, including a YellowPages app. It has also created applications for mobile phones other than the iPhone.
The acquisition of Plusmo should help AT&T develop new applications more quickly and more cheaply. It could also allow for over the air updates for mobile devices. But AT&T is also planning to use the technology to develop applications for its broadband customers and TV subscribers.
Plusmo says it offers a service that delivers more than 20,000 mobile widgets to consumers. It has also developed numerous sports-oriented applications offered on several platforms. The company has relationships with handset manufacturers, publishers, and carriers, according to AT&T.
Yahoo announced three new mobile applications Tuesday as the company continues to focus more on developing specific applications for the iPhone and other select smartphones like the BlackBerry.
The most widely publicized application to be announced Tuesday is Flickr for Mobile. This application is only available for Apple's iPhone and iPod Touch. It's free from the iTunes App Store. And it allows users to upload, share, and tag photos and videos. Flickr already has a browser-based mobile app at M.flickr.com.
The official Flickr app for iPhone and iPod Touch offers search, browse, and upload features.
Yahoo also created two new mobile applications for a few BlackBerry models.
Yahoo Finance for Mobile works on the iPhone and iPod Touch, as well as the BlackBerry Bold, Tour and 8900 series. This free application allows users to track companies, market indices, and news. It also lets users drill down into specific companies for more data. Yahoo already has a browser-based version of the application.
Yahoo also announced Yahoo Fantasy Football for Mobile. This application is available for the iPhone/iPod Touch and the BlackBerry Bold, Tour and 8900 series. Using this application, football fans can manage their teams from their phones, add and drop players, view match-ups and player stats, and get news and expert advice.
These new applications, which are specifically designed for the iPhone and a handful of BlackBerry devices, are part of the company's latest strategy to address the mobile market. Earlier this year, Yahoo shifted its mobile strategy to focus more on developing separate and distinct applications instead of creating services that fell into an all-encompassing Yahoo application.
"Before we had a one-size-fits-all approach to the application market," said Sandeep Gupta, senior director of mobile applications for Yahoo. "But the iPhone changed how consumers accessed applications. Now, they want to search for and download point applications. And we thought it was better for us to fit into this world."
Yahoo's primary goal with the strategy shift is to bring Yahoo's PC-based services to mobile phones. And in order to do this, Yahoo executives said they needed to develop and distribute applications like other developers, which meant adopting the iPhone model.
To execute this strategy, Yahoo is taking a two-pronged approach. It is offering browser-based applications for its more general properties, such as travel, personals, or some of its entertainment sites. But for more frequently visited sites, such as Flickr and Finance, Yahoo is creating native applications.
"Yahoo has a huge set of properties that we want to bring to all mobile users," Gupta said. "But we can't have customized application experiences for all of them. It's too much work. So we have created a broad experience for a whole host of sites. And we're creating a more customized app experience with a richer experience for certain vertical sites."
In February, the company announced the newly revamped Yahoo Mobile service, which combines all the organizational elements of Yahoo OneSearch, OnePlace, and OneConnect together in a single application. The redesigned service is a scrollable mashup of search, news, e-mail, social networking, finance, weather, sports scores, and other RSS feeds.
The company decided to offer the service to more than 400 mobile devices as a browser-based application. But it also built a version specifically for the iPhone. The app is free to download and is available on Apple's iTunes App Store.
Now, Yahoo has created three other native applications that have been customized for specific devices. Initially, these applications are only available on the iPhone and certain BlackBerry devices. The reason for this is simple. The iPhone and the BlackBerry currently have the most interactive mobile users, Gupta said. But he added that the company will eventually tailor these same applications for other smartphones, such as the Palm Pre and Google's Android phones.
"We're not waiting for these other devices to get popular," he said. "Work is going on. But it's a matter of priorities. There is a lot of investment needed to build these applications. And we have prioritized which devices have the most interactive users."
Correction 5:15 p.m. PDT: This story initially misstated the author of the letter where quoted. It is the Free Press.
An advocacy group on Friday called on the Federal Communications Commission to require wireless carriers to allow consumers access to Skype via smartphones, as well as the ability to connect their devices to the Internet through tethering applications on their cell phones.
(Credit:
Apple)
The Free Press, in a letter to acting FCC Chairman Michael Copps, expressed concern that wireless carriers were not abiding by the FCC's Internet Policy Statement.
Earlier this week, eBay's Skype made a VoIP application available for download from Apple's App Store.
But AT&T, Apple's exclusive iPhone dealer in the U.S., apparently wants to block the use of Skype on its 3G network, according to a report in USA Today.
In the USA Today report, Jim Cicconi, an AT&T public policy executive, said the telecommunications carrier had the right to forgo the facilitation of its competitors' services. He added Skype is considered a competitor.
The report further notes an Apple spokeswoman, Jennifer Bowcock, indicated the device maker limits third-party Internet phone applications for the iPhone and iPod to Wi-Fi.
In its letter to the FCC, Free Press says:
For two years, we have followed your leadership in raising concerns that wireless service providers appear to be engaging in activities that go against the Commission's Internet Policy Statement by violating consumers' right to run applications, use services, or attach devices of their choice over their broadband connections.
Recent reports about application blocking again raise these questions. Regardless of whether any particular incident would be found in violation of the law, the lingering uncertainty surrounding consumer rights on the Internet indicates the need for the Commission to clarify its rules. To resolve any alleged ambiguity raised by parties in earlier proceedings, the Commission should confirm that the Internet Policy Statement applies to wireless service providers that offer broadband Internet access service, as has been acknowledged in prior proceedings and statements of sitting Commissioners. Furthermore, the Commission should request more information on the extent of the wireless providers' role in and their justifications for these widely-reported behaviors.
Free Press further notes the FCC should investigate the practices of wireless carriers for possible violations of the Internet Policy Statement, as it particularly relates to possible direct or indirect limits on consumers' ability to run applications and services of their choosing on their devices.
Update at 2:52 p.m. PDT, with a report from AdMob about global Internet traffic on smartphones.
With the popularity of Apple's iPhone mobile-application store growing and competitors Palm and Google teeing up their efforts, the number of smartphone users tapping into mobile-application stores are expected to reach 100 million in 2013, according to a research report released Tuesday by In-Stat.
(Credit:
Apple)
Currently, the number of smartphone users accessing mobile-application stores is roughly a fourth of the projected 100 million users and is largely comprised of only iPhone users.
But with Google calling on third-party developers to embrace its Android smartphone and Palm with its highly anticipated Palm Pre smartphone set to debut this summer, In-Stat is expecting the number of users accessing mobile-application stores with their smartphones to increase four-fold by 2013, noted David Chamberlain, a principal analyst with In-Stat.
(Credit:
Palm)
These smartphones are built on an open platform that can accept applications from any developer who writes programs for that particular mobile operating system and are sold, or distributed freely, via a mobile-application store, rather than through the phone's carrier.
By 2013, Chamberlain said he expects nearly one-third, or 100 million, of all smartphone users to have the capability to access mobile-application stores. The current slice of the total pie is a fraction of that and largely comprised of Apple iPhones, he noted.
(Credit:
Google)
While a number of these mobile applications are offered for free, that could change as third-party developers and operators of mobile-application stores find it difficult to make money off advertising.
"If Coca-Cola buys a Superbowl ad, Nielsen can say how many people watched it," Chamberlain said. "But there are no independent third parties to audit mobile applications."
AdMob, a mobile-advertising marketplace, issued a report Tuesday that looked at February Internet traffic using smartphones.
According to the report, smartphones accounted for 33 percent of the global Internet traffic in February, up from a 26 percent slice six months ago.
And within the smartphone market, here's a ranking of which device grabbed the largest share of Internet traffic, according to AdMob:
(Credit:
AdMob)
And in the U.S., Apple's iPhone has an even greater share of the Internet traffic among smartphones.
The iPhone holds a 49.5 percent slice of U.S. Internet smartphone traffic, followed by Research in Motion's Blackberry 8300 with a 9.1 percent slice and the Blackberry 8100 with a 6.9 percent piece.
And among mobile operating systems in the U.S., AdMob ranks Google's Android as holding a 5 percent slice for the smartphone market. And holding the U.S. lead is the iPhone operating system with 50 percent of the market share in February.
Handmark announced Thursday plans to acquire FreeRange Communications, in a move to expand its mobile applications to include a publishing platform.
FreeRange, based in Portland, Ore., markets a mobile publishing platform that aims to allow media and content publishers the ability to create a branded channel on a mobile device.
With the acquisition, Handmark is also looking to add FreeRange's RSS Web reading capabilities to its mobile offerings.
Financial terms of the deal were not disclosed. The companies expect to complete the transaction in the coming weeks, following shareholder approvals.
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