Mobile Phones O2 and Orange link up to fight iPhone

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O2 and Orange link up to fight iPhone

O2 and Orange are to join more than a dozen mobile groups in a project to pool resources and create 'app'-style services across their range of handsets

More than a dozen of the world's biggest mobile phone companies, including O2 and Orange, are hoping to strike back against the success of Apple in persuading people to download and use mobile applications – or "apps" – by building their own competing open platform which can be used by developers of games and other services.


The mobile networks hope that by pooling their resources, creating technology that would allow services to be developed that will work across a huge range of handsets, they can claw back some of the ground they have lost to companies such as Apple and Google and generate additional revenues from third-party developers.


The mobile phone networks fear that at the moment they are in danger of becoming little more than "dumb pipes in the air", with all the revenues created by applications going to software developers and the companies that operate the stores that supply them.


Apple has already seen over 3bn apps downloaded from its App Store by users of the iPhone and iPod touch. Google, meanwhile, has an application marketplace as part of its Android mobile phone platform, and several devices sporting the software will be unveiled at this week's Mobile World Congress in Barcelona, the industry's biggest trade show, which starts today.


But it is not just Google and Apple that are profiting from the "apps explosion". Steve Ballmer will this afternoon use the Mobile World Congress to unveil Microsoft's latest attempt to break into the mobile phone industry. Windows Mobile 7 – or Windows Phone, as Microsoft has dubbed it – includes an application store that allows users of Microsoft devices to download a host of games and other applications. Even phone manufacturers such as Samsung and RIM, maker of the BlackBerry, are getting in on the app act, while Nokia already has its Ovi store open for business.


Several of the world's biggest operators are part of the Open API initiative, which allows application developers access to some of the core information contained within their networks, such as location and billing. Essentially an API (application programming interface) allows a developer to integrate its application with another piece of software. The Open API plan, for instance, allows software developers to create programmes that can be paid for by consumers on their mobile phone bills.


But the new consortium, which will be announced by industry trade body the GSM Association at the Mobile World Congress today, is designed to go even further. The recent explosion in mobile phone software – from Apple's iPhone to Nokia's Symbian platform, Google's Android and Microsoft's Windows Phone – means the "apps" market is becoming increasingly fragmented. Also, consumers who switch from one device to another will soon find themselves having to download – and pay again – for all the applications they had on their old phone just because their new phone uses different software. The operators fear that they will be at the receiving end of the subsequent consumer backlash.


Orange, Telefonica – which owns O2 in the UK – T-Mobile and several other operators are already signed up to the GSMA plan. Vodafone, however, is ambivalent as it is engaged in an open platform alliance called the Joint Innovation Lab with China Mobile, Japan's Softbank and Verizon Wireless of the US.


In fact, applications are likely to be a highlight of this year's Mobile World Congress, with developer workshops taking place throughout the show, helping programmers create for Android, BlackBerry and Vodafone's recently announced Vodafone 360 platform.


Several companies will also announce their own app developments. Today, for instance, British digital music group Omnifone will announce that it has created a version of its mobile music service that runs on Android phones. Omnifone, which has access to a catalogue of more than 6.5m tracks, is looking for network or handset partners who want to launch an unlimited download or streaming music service on Android devices using its platform. It already, for instance, powers Vodafone's unlimited music service in the UK and recently clinched a deal to have its MusicStation service pre-installed on Hewlett-Packard laptops and computers. Omnifone is currently developing apps for both the iPhone and Windows Mobile devices.


Skype, meanwhile, will today announce that it has created a version of its popular free internet telephony service for Nokia's Symbian operating system, which is already used by more than 200m mobile phones worldwide. Skype is now available as a free iPhone app, which has been downloaded more than 12m times since its launch in April last year.


The Symbian version will initially be available as a download from the Skype website but will appear on Nokia's Ovi store in the next few weeks. The company, which was sold by owner eBay last year, is planning an Android version for later in the year. Skype, which allows people to call other Skype users anywhere in the world for free, is also expected to announce a partnership with Verizon Wireless, which is likely to raise some eyebrows as in the past the American network's joint owner, Vodafone, has blocked internet telephony services from its own networks.



Richard Wray
Monday 15 February 2010 00.05 GMT
guardian.co.uk © Guardian News and Media Limited 2010
 
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