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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Migrants sell up, flee Arizona ahead of crackdown 25 Jul 2010 Russia attacks Iran's verbal assault on Medvedev 26 Jul 2010 N Dakota, Alaska lead US job creation, study says 26 Jul 2010 Missing U.S. sailor's remains found in Afghanistan 10:10am EDT Europe's prospects brighten as U.S. fades 25 Jul 2010 BP launches image overhaul and ditches Tony Hayward | Video 11:12am EDT Examiner finds evidence of "dishonesty" in Tribune sale 8:00am EDT EU toughens sanctions on Iran as Tehran offers talks 4:33am EDT Obama asks Senate to pass bill on ad disclosure 26 Jul 2010 Antarctic octopuses found with cold-resistant venom 22 Jul 2010 N Dakota, Alaska lead US job creation, study says 26 Jul 2010 Migrants sell up, flee Arizona ahead of crackdown 25 Jul 2010 CORRECTED - Air Berlin expects to join Oneworld in early 2012 11:16am EDT Toyota pushes back U.S. Prius production by years 9:13am EDT Europe's prospects brighten as U.S. fades 25 Jul 2010 Scientists inch towards finding "God particle" | Video 26 Jul 2010 Special Report: Is immigration a desert mirage for the GOP? 9:30am EDT Federal ruling allows iPhone users to alter software 6:31am EDT BP launches image overhaul and ditches Tony Hayward | Video 11:12am EDT Honda to sell plug-in hybrid and electric cars in 2012 21 Jul 2010 Telecom software groups merge in app store battle Digg This Tweet This Share on LinkedIn Share on Facebook Factbox Factbox: Key problems facing Nokia CEO Tue, Jul 20 2010 Related News Telecom software groups merge in app store battle 5:01am EDT Google search share slips, Baidu gains - report Fri, Jul 23 2010 UPDATE 4-Nokia Siemens wins $7 bln U.S. deal Tue, Jul 20 2010 UPDATE 4-Nokia jumps on hopes of CEO change Tue, Jul 20 2010 Related Topics Technology » iPad » Deals » Inflows Outflows » Media » By Tarmo Virki, European technology correspondent HELSINKI | Tue Jul 27, 2010 8:32am EDT HELSINKI (Reuters) - Two telecom operator-backed software groups are merging to counter increasing competition from new rivals Google and Apple for mobile phone applications. Uniting the two groups -- smaller, more-established JIL and wider application alliance WAC -- will let software developers reach a large share of their telecom operator members' 3 billion customers with just one version of software. The merged group will act as a wholesaler, distributing software from multiple developers to individual operators. For most small development houses it would be too costly to create dozens of versions of the software to reach each operators' online apps store separately. Apple's App Store, launched in June 2008, created a market for mobile applications, or small programs, worth $4.1 billion last year, according to research firm Chetan Sharma. WAC -- whose founding members include AT&T, China Mobile, Telefonica and Vodafone -- aims for the first stores using WAC software to open before February 2011. "WAC, by sheer scale, will have dominance in the market," Daniel Gurrola, vice president for strategy from France Telecom's mobile Orange arm, told a conference call with analysts and journalists. But with consumers mostly choosing to download free applications, some analysts questioned a plan to build a massive new store to battle dozens of similar existing stores. "If you want to battle Apple you don't have to build the world's largest app store, you need a more focused one. They need to create services consumers are willing to pay for," said John Strand, founder and chief executive of Danish telecoms consultancy Strand Consult. "Operators are now investing heavily into something which does not generate any cash -- they are destroying shareholder value," he said. Strand Consult estimates the average price of an application distributed through the Apple App Store at just $0.26. LONG ROAD AHEAD Major telecom operators formed the WAC alliance in February to build an open platform that will deliver applications to all mobile phone users, but analysts have been skeptical whether so many operators could work together efficiently. "The growing challenge for developers is not only fragmentation at a software platform level, but also the channel to market," said Geoff Blaber, analyst at British telecoms consultancy CCS Insight. "WAC has a long and challenging road ahead but it's responding swiftly to the key factors that are critical to developers," Blaber said. Bharti Airtel, MTN Group, NTT DoCoMo, Orange and Orascom Telecom are also among the founding members of the WAC alliance. The alliance is supported also by three of the world's largest phone makers -- LG Electronics, Samsung and Sony Ericsson. The first phone models using new WAC software would be shown at the Mobile World Congress wireless trade show in February 2011 and reach the market around May 2011, WAC said. JIL groups China Mobile, Softbank, Vodafone and Verizon Wireless -- all of which also founded WAC. (Additional reporting by Paul Sandle and Kate Holton in London; Editing by Michael Shields and Erica Billingham) Technology iPad Deals Inflows Outflows Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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