Mobile Application Industry Challenges. Opportunities. Recommendation
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1 Mobile Application Industry Challenges. Opportunities. Recommendation Presented by: SM Ashraf Abir, CEO, MCC Ltd
2 MCC Ltd 2013 Why Mobile? The mobile network is the world's largest distribution and communication platform, with more than 6,000,000,000 subscribers worldwide. (five billion)
3 Phone Ads 2008 MCC Ltd 2013
4 Phone Ads 2013 MCC Ltd 2013
5 Locally Developed Mobile Apps TOTAL DOWNLOAD 3.6 Million TOTAL COUNTRIES 199 Countries
6 Case Studies Where is Bangladesh? MCC Ltd 2013
7 C a s e S t u d y 1 Outsourcing Mobile app development as a career MCC Ltd 2013 IT job site Dice.com found that job postings for Android developers soared 302% in the first quarter of this year Elance.com, In the first quarter of 2011, there were 4,500 mobile developer jobs posted on the site An impressive 47% of all mobile jobs posted came out of the UK, with 53% of work in mobile app development. A skilled programmer should be able to move between languages fairly easily, since mobile development essentially just involves learning a new syntax. Refrence link:
8 MCC Ltd 2013 C a s e S t u d y 2 To be a Hero Become a Mobile app entrepreneur Angry Birds Maker Rovio Says 2012 Sales Up 101% To $195M With Merchandising, IP 45% Of That; Net Profit $71M Fruit Ninja' Makes $400,000 a Month on Ads
9 Skills in demand & Earning MCC Ltd 2013
10 MCC Ltd 2013 C a s e S t u d y 3 A Poor Developer Nokia Store (Bangladesh Market) Yes we have Global Opportunities. But from Bangladesh 1.3 million initiate download per week 70+ million download per year Average Application Size : 1 MB Average Total Mobile Internet Usages: 1270 GB (1.3m/1024) Max calculation (Pay As You Go at BDT 0.02/KB) Per MB Internet Cost: % VAT = 23tk (avg) Total Revenue Per Week (All Operator): 29.9 million Total Revenue Per Year (All Operator): 1.43 billion (143 core) Minimum Calculation: 1GB Package BDT = 19core Handset benefits: Handset Marketing, Increase Sales Total Revenue (Application Developer): 0 Total Revenue (Content Developer for Apps): 0 Lack of need assessment /research facilities No Paypal for money transfer Delay in wire transfer Limited international credit card access (developer can t open account even/not allowed international purchase except basis member for software) Expensive development cost for operator s platform
11 Current Scope for Developer MCC Ltd 2013 Global (70%) 400 million Store Account with Credit Card Operator billing 70+ countries $5.5 Paid to developers ( 2012) Local (40-50%) AloAshbei paid mobile app portal which is connected to one telco Symphony in device app portal (one telco) EATL app portal (local credit card & BIKASH) Get out-app purchase module using local payment gateway SSL/Walleto How to Earn Money? Free app can get revenue from advertisement Paid app on IOS, NOKIA, BB, WINDOWS get payment by Bank Wire Transfer Working for clients as freelancer/outsourced employee
12 Global Smart Phone Market Share MCC Ltd
13 Local Smart Phone Market Share MCC Ltd 2013 among MCC s 3.6 Million Download Symbian still reigns with 88% Share
14 Total app market revenue and average revenue per app (to 5 app stores*) ( E) The Market for Paid App Downloads Exceeded US$ 8bn in 2012
15 MCC Ltd 2013 App Categories G a m e s E d u c a t i o n E n t e r t a i n m e n t Books L i f e s t y l e U t i l i t i e s B u s i n e s s M u s i c S p o r t s N e w s P h o t o & V i d e o F u t u r e M e d i c a l S o c i a l N e t w o r k i n g W e a t h e r F o o d & D r i n k s
16 Mobile Application Eco-System MCC Ltd 2013 Idea /Business Model Hardware (Mobile Device) Application Development - Programming - Graphics Apps Store (Distribution) International - Nokia - IOS - Android - Black Berry - Windows Apps Store (Distribution) Local - EATL - Alo Ashbei (GP) under construction - Symphony (under Construction) App Monetisation GNR (Under Construction) Inneractive Admob Payment Option
17
18 MCC Ltd 2013 Revenue Options for App Developer 70% Developer 30% Store Pay-Per-Download Pay-Per-Issue/Edition Download Pay-Per-Impression Pay-Per-Click In-Application Subscription Free with Advertising Start Free, convert to Paid Free AND Paid version Free and Donate Gift an App
19 MCC Ltd 2013 so what are the Challenges? local price point is required for Bangladesh market which is not available at the moment If you are not located in any of the countries listed below, or do not own the required bank account for receiving payments, Google may not be able to pay for the sales in that account by any other means. International remittance is a challenge in Bangladesh for which the permission and payment process may take around 3-6 months For every international remittance, there is a TAX of 10% and VAT of 15% on the remitted amount which makes the business case poor In Bangladesh end customers are charged 15% VAT for every telecom service consumption which needs to be displayed on Apple AppStore and Google Play store. Both Apple and Google does not support such price display at the moment etc
20 MCC Ltd 2013 Recommendations to grow Mobile Application Industry in Bangladesh
21 1. Outbound Remittance Tax & Policy issue v v v v Operators need to receive permission or opportunity for outbound remittance. It is necessary to reduce tax rates for outbound remittance. BTRC needs to take the necessary steps to allow mobile operators to have operator billing in international mobile application marketplace ie Google Play, NOKIA Store, Windows Store etc. Permission to use locally issued/local credit cards for purchase on internet from global sites, and bank service in this regard needs to be ensured. MCC Ltd 2013
22 2. Industry support v v Developers involved in the mobile app market need to be encouraged and their skill set and work facilities improved by ensuring - financial support - subsidies facilities - cheap Internet service - uninterrupted power and - the option to rent spots at Hi-tech parks at low or no cost and for a long duration Financial support needs to be given to local companies showcasing their products at international mobile application related events, so that foreign companies are encouraged to pick Bangladeshi app developers & companies. MCC Ltd 2013
23 3. Capacity Building v v v v MCC Ltd 2013 Programmes focused on promoting awareness of the mobile app market and raising the technical skill of app developers need to be undertaken on a national level. There needs to be public-private partnership projects, both short and long-term, to build up a skilled generation of app developers, in co-operation with organizations that are currently working with mobile applications. International standard education on the technical aspects of mobile app development must be provided at the university level. Mobile application labs need to be established nationally.
24 MCC Ltd New Services Launch v All government & popular public services (most demand) must be available via smart phone mobile applications in local language v Along with all necessary mobile payment option using operator billing facilities.
25 Thanks
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