ITU Arab Forum on Future Networks: "Broadband Networks in the Era of App Economy", Tunis - Tunisia, 21-22 Feb. 2017
App EconomyMarket analysis for Economic Development
Mustapha Hamza, ISET’Com [email protected]
The sum of all economic activity, products and services, required to deliver app functionality to end users via mobile broadband services
Global Local Personal
App Economy
Growth for a local area by writing a mobile application that is nationally or even globally successful.
local universities, an educated workforce, desirable amenities such as quality of life and ease of recreation.
Potential: exportable Opportunities for economic development
App Economy
Investment, development
in app startups
Smartphone production
App developers
and app stores
IT & backboneinfrastructure
Telco services, broadband
App economy value chain
0,
1,
2,
3,
4,
5,
6,
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Global unique mobile subscribers 2010-2020 Number of unique mobile subscribers worldwide from 2010 to 2020 (in billions)
0,
50,
100,
150,
200,
250,
300,
350,
Q1'09
Q2'09
Q3'09
Q1'10
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Global smartphone sales to end users from 1st quarter 2009 to 3rd quarter 2016, by operating system (in million units)
Android iOS Microsoft RIM Bada* Symbian* Others
The number of mobile subscribers will continue to growth slowly but to reach more people even in developing countries
Subscribers
Sales continue to growthTwo dominant players (IOS and Android)Innovation and new functionalities evolution
Platforms
Context statistics
0
10
20
30
40
50
60
2016 2017* 2018* 2019* 2020* 2021*
Global mobile data traffic from 2016 to 2021(in exabytes per month)
0
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
8 000 000
2016 2017* 2018* 2019* 2020* 2021*
Mobile data traffic in Middle East and Africa from 2016 to 2021 (in terabytes per month)
• Services delivered through the mobile telecommunications network, has led to strong growth in consumer demand for fixed and mobile bandwidth.
• Government policy concerning infrastructure investment, communications regulation and a range of related issues has played critical roles in the development of these services.
• The price and quality of these services remains a key political issue for many, if not most, governments around the world.
Trafic
Context statistics
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
Jul '
08
Sep
'08
Ap
r '0
9
Jul '
09
No
v '0
9
Mar
'10
Jun
'10
Oct
'10
Jan
'11
Jun
'11
Oct
'11
Mar
'12
Jun
'12
Sep
'12
Jan
'13
May
'13
Jun
'13
Oct
'13
Jun
'14
Sep
'14
Jan
'15
Jun
'15
Jun
'16
Jan
'17
Number of available apps in the Apple App Store from July 2008 to January 2017
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
Dec
'09
Mar
'10
Ap
r '1
0
Jul '
10
Oct
'10
Ap
r '1
1
Jul '
11
Au
g '1
1
Dec
'11
Feb
'12
May
'12
Jun
'12
Sep
'12
Oct
'12
Ap
r '1
3
Jul '
13
Jul '
14
Feb
'15
Jul '
15
No
v '1
5
Feb
'16
Sep
'16
Dec
'16
Number of available apps in the Google Play Store from December 2009 to December 2016
0,
20,
40,
60,
80,
100,
120,
140,
160,
Jul '
08
Sep
'08
Ap
r '0
9
Jul '
09
Jan
'10
Ap
r '1
0
Jun
'10
Sep
'10
Oct
'10
Jan
'11
Jun
'11
Jul '
11
Oct
'11
Mar
'12
Jun
'12
Sep
'12
Jan
'13
May
'13
Oct
'13
Jun
'14
Oct
'14
Jun
'15
Jun
'16
Sep
'16
Cumulative number of apps downloaded fromthe Apple App Store as of Sept 2016 (in billions)
0
10
20
30
40
50
60
70
Aug '10 May '11 Jul '11 Dec '11 May '12 Jun '12 Sep '12 Jan '13 May '13 Jul '13 May '16
Cumulative number of apps downloaded from the Google Play as of May 2016 (in billions)
Context statistics
Apps are supported by advertising.
Potential: exportable
Charging money for an app
Premium
The app away for free Making money via in-app purchases (IAP)
Freemium
freemium with ad-supportedpremium with in-app purchases (IAP)
HybridAd supported
Business models
App economy for operators
Contributed to the app economy growth: pricing modelsBenefited from app economy: users have consumed much larger amounts of data
They are a pipe Picking majority of the revenues from core serviceA ‘free’ ride to OTT players
Deploy skills, partnerships and integration capabilities across the value chain
Operator API contribution
Operator’s initiative to be more involved in the chain value
Objective: make money beyond connectivity
Usage universally low
Limited technical integration
Lack of commercial models and incentives
Difficulty to find and grow the markets of developers
Conclusion
Application economy allows great opportunity for in developing countries
Need a stable, secured and managed IT platform
Various business models
Need of developers in terms of number and qualification
Thank you for your presence
