Mobile Billing from Nokia (Ovi Store) is Ready for Use, Opening Opportunities for Local Development

One of the things prepared by Nokia in the second quarter of 2011 is the mobile billing service integrated with their applications store, Ovi Store, which allows Indonesian users to download or buy applications from Ovi Store.

As written by Kompas a few days ago, Bob McDougall, Country Manager Nokia Indonesia said that they would set up paid services for Indonesian users relating to applications purchase directly from the Ovi Store that will begin to run in the second quarter of 2011.

Starting 7 April, the mobile billing service has been officially run for general consumers. Users can buy the paid applications directly with phone credit cutting system.

I tried to contact the Narenda Wicaksono, Developer Marketing Manager - Service Portfolio Nokia Indonesia as one of the Nokia representatives, which for me is active enough to meet with the developers in various cities in Indonesia and informs about the opportunities of paid applications on Ovi Store.

As described by Narenda, previously all applications on Ovi Store that could be accessed using a Nokia mobile phone users in Indonesia can only download and enjoy the free version of the application. This is surely different from other countries who have provided applications purchase facilities with phone credit cutting system or credit card. Now, users from Indonesia has been able to buy applications directly from the Ovi Store.

Nokia works together with the three major operators in Indonesia to provide toll-cut mechanism in the application purchase process. Users can buy the paid applications, either developed by local and international developers. Operators who are ready with the paid applications facility currently only Telkomsel and will followed by two other major operators.

Ovi Store growth statistics, described by Narenda is also positive. The growth of existing applications on Ovi Store Indonesia has reached more than 100% in the first quarter of 2011. The download applications success stories from local developers is also available, whether it downloaded from Southeast Asia or around the world, and one of them is Ahmad Masykur who shared his experience on Suwec event yesterday.

Narenda said, the number of downloads for applications in Indonesia has reached 1.1 million downloads per day which makes the opportunity for local developers. Nokia also clearly expands in Indonesia in these few months. Events and workshops are regularly held in various cities. Some of the events, among others, starting from Yogyakarta with Bancakan, in Bandung with Mobile Game Developer War as well as a few days ago with Suwec.

Sharing of the benefits that will run for developers, explained by Narenda is 60% to the developer if the user buys an application with mobile billing, while the developer will get 70% for users who purchase application using a credit card. Nokia (Ovi Store) and the operators will share profits from the rest of the presentation on each application purchase method.

Nokia's approach to attract local developers are also quite clever. Initial approach was more emphasised on the technical side (eg application development with hackhaton), but the business opportunity has always been introduced by Nokia. Certainly, with mobile billing facilities, the opportunity for paid applications aimed at for Indonesian consumers will be even greater.

The next question is about the consumer or the buyer itself, especially for the local market, with a target market of middle-low market segment – the challenge is to manufacturing attractive applications and make consumers willing to pay to download the application.

What about the opinions of the DailySocial readers, will mobile billing facility open opportunities for local developers, particularly in terms of monetization? We are waiting for your opinion on the comments field.

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Translated by Nita Sellya.

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