Given that Handango have a catalog of applications that they sell through a range of store fronts hosted for operators and Nokia’s Preminet does pretty much the same thing today’s announcement seems just a little odd. We find out more with Handango’s Clint Patterson.
Richard: Clint perhaps we could start by clarifying what this announcement covers?
Clint: Basically as a Key Content Provider we will be creating and maintaining XML feeds from our content catalog for the Preminet Purchasing Client. So an operator who is deploying Preminet can choose to supplement the Preminet Mater Catalog with a Handango channel.
Richard: So operators will be able to chose the content which meets their needs from either catalog.
Clint: Exactly, it pretty much the same as the relationship we already have with Vodafone in the UK. There we supply all the productivity and travel applications for Vodafone UK’s application vending machine as part of their Live portal.
Richard: Given that you have your own content delivery system with a catalog, delivery platform and client shops it would seem that you are supplying content to what to all intent and purpose is a competitor?
Clint: The key for us is that there are no real disadvantages in supporting Preminet. Nokia is a big company and their size means two things, firstly that they will achieve some level of adoption for Preminet and secondly that they will eventually build a comprehensive catalog of content. But at the moment Nokia are building the service and building the catalog, so if we can sell from our catalog through Preminet and get a slice of a new revenue stream where an operator chooses Preminet it is advantageous to us.
It the same as the rationale behind our content provisioning to Vodafone Live in the UK, Live is in some ways a competitive channel, but from our point of view its better to be stocking a competitors vending machine than not be part of the channel at all. It a classic coopertition strategy.
We have worked with Nokia for some time, and provide them with their Americas software market, which we expect to continue providing for some time to come.
From Nokia’s perspective we have exclusive content which Nokia can only access from us, so providing the option of a Handango feed boosts the available application and content catalog.
Richard: So is this deal a vote of confidence in the Preminet solution?
Clint: Preminet is a great deal, like Handango AMPP - operator branded interface, billing integration, master catalog of certified applications, on-device client. So, yes, we believe in that model, to the extent that you might say we invented it, in the open operating systems market. Nokia is almost certain to have some success here as well.
However, from our perspective Preminet is more about Series 60. It's an essential part of the infrastructure Nokia needs to help ensure the growth of the platform. While Symbian application sales over the last couple of years have been stellar they have been driven mainly by software for Sony Ericsson's UIQ devices, by comparison Series 60 application sales have been pretty lackluster.
By making the discovery and purchase of Series 60 applications easier, cleaner and more palatable customers, I think Nokia is hoping to lift sales and make the platform more attractive to operators and licensees.
I see Preminet as part of Nokia's strategy to jump start Series 60 applications sales. However, I think Nokia faces some definite challenges, given operators' inherent resistance to becoming reliant on a dominant handset vendor. The likelihood of an operators letting a manufacturer take control of their application distribution channel seems questionable.
Richard: However Nokia are making much of the platforms openness and modularity of the Catalog, Delivery Platform and Purchasing Client, presumably to help allay those fear by presenting Preminet as a mix and match solution?
Clint: To be honest I don’t have enough details on the architecture to really comment on whether it will truly provide that plug-and-play type of capability. I convinced that even if it can deliver that sort of modularity Nokia still has a big philosophical challenge to getting Preminet adopted but at the same time it is critical for Nokia to get the solution adopted because it needs to jump start Series 60 application and content sales.
Richard: One of the potential benefits for the competition from Nokia’s entry into this market is that it provides validation for the mobile software and content distribution model. Do you see any other positives from Nokia’s entry?
Clint: I think the big one will be in the area of standards, there still much about provisioning content which is non-standard and given Nokia’s history in driving standards I can see them helping move them along, and that will make life easier for all of us.
Richard: You clearly don’t see Preminet as an immediate or even near term threat, however large players have a habit of catching up. How do you see Handango competing over the longer term?
Clint: For us maintaining our market leading position is about remaining open and remaining a cross platform supplier and looking for better ways to do what we do best.
You can find out more about Handango’s AMPP system here. For an overview of Preminet for developers read the "Preminet Solution Overview for Developers" (1.1Mb pdf) or from www.nokia.com/preminet.
Read the joint press release here.
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