CDMA telecom operator MTS (Sistema Shyam TeleServices Limited) intends to develop an application store for its subscribers, reports PTI (via Business Standard). The report quotes MTS COO (Delhi & Haryana), Shankar Bali, who said that the operator wants to work on the ecosystem surrounding smartphones to offer exclusive apps. Reaching out to a new segment: While, the CDMA handset market has moved on to embrace the 'open market handset' standard, allowing users to choose any of the CDMA networks, telcos like MTS still offer self-branded network locked handsets, specially when they offer EMI schemes or bundle free data. This makes it easy for MTS to pre-embed an application store, or just sideload one through a link, on phones. With low priced smartphones and cheaper data on CDMA, developers would be able to include a whole new segment, making it part of the app economy. But it should also be noted that smartphone platforms also offer their own app stores, so there needs to be differentiation in terms of more localised content, and unique apps. This is where developers could build apps that feature indic content, as well. Monetization & opportunities: It would be interesting to see how MTS monetizes these apps - whether it chooses a pay per day model, or an ad supported free model at the customer end, and how it splits the revenue with the developer. Most telcos take a large cut from app revenue on their app stores, making it unviable for developers. The only silver lining…
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