New entrants into the commercial application market such as Apple’s App Store and the global increase in the importance of “non-voice” revenues are opening eyes to the promise and potential of the open retail model, as well as prompting greater investment in the infrastructure needed to implement it.  But then this begs the question: what will this marketplace sell to consumers and enterprise customers?  To application developers and service providers this question is of tremendous importance as it guides them in choosing what type of applications are likely to be in demand over the coming months.  In this article we’ll take a closer look at three factors influencing their decisions: the increase in bandwidth, network convergence, and support for new business models.

First, with HSPA (High Speed Packet Access) driving up to 7.2 Mbps to the terminal device, speed is no longer the main difference between the services delivered on mobile networks and those offered on fixed networks.  Instead, the focus will shift to delivering a common experience on all networks, but of course leveraging special characteristics of mobility such as location and availability, compact screens and data input mechanisms, autonomy, and more frugal use resources on terminal devices.  And of course, with mobile broadband, terminal devices might actually be laptop computers, mobile internet devices and TV set-top-boxes, so there is definitely an opportunity in creating applications that take advantage of both mobility and the capabilities of personal computers and high end computing platforms.

There is also an increasing requirement for applications to support transparent user access from many different device types.  Building such capabilities into applications will address the growing market of converged network operators who are looking to leverage the “triple or quadruple play”.  It also means that developers need to understand and integrate a broader knowledge base from a terminal perspective, although tools supporting convergent platforms such as Ericsson’s Service Development Studio (SDS), standards such as JSR 281, and technologies such as IMS are making it easier, lowering risk and reducing development time and effort.

Finally there is the opportunity of “telecoms grade” identity management expanding the business models that can be used by developers and service providers, so that they can explore revenue streams beyond the advertising model most common on the internet.  Subscription models, prepaid, pay per use, and the integration of telecoms communications capabilities into internet applications are providing not only new ways to monetize applications and services, but also bringing with them the potential to reach the over 3.5 billion human beings active on the global PSTN.

Of course the usual commercial concerns apply:  segmentation and the evolution of user needs.  At the current time, we are seeing increased demand for applications in the standalone and multiplayer on-line game segment, music (media) services, enterprise applications, sports, and especially social networking (community) applications.  The Ericsson Developer Program is working on expanding our developer ecosystem in these areas as we expect demand for new applications and services to be focused there in the 2009 and 2010.

So here is this week’s question to developers: 

• How do you expect the increase in the available bandwidth will affect the type of applications that are delivered via the telecoms channel?      
• Should Ericsson be adding to the list of application areas above?     
• And looking a bit further out, how do you think this picture will change when users get the “hundreds of Mbps” they will enjoy with LTE (Long Term Evolution)?
  

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The opinions expressed in this column are solely those of the author, and in no way represent Ericsson AB's official or implied position on the issues discussed.