WAC Confirms In-app Billing Support and Brings Big Names to the Table

| Feb 15, 2011 | Consumer Services Europe | Analysts: Emma Mohr-McClune, Farah Jifri

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Event Summary

February 14, 2011 -- The introduction of the WAC 2.0 specification coincided with a commitment from eight major operators to the standard and confirmation that the next update will provide support for in-app billing functionality. Vodafone Group has implemented WAC-enabling of its apps offering in all country markets, and Telefonica is beginning rollout across its footprint starting in Spain. WAC 2.0 offers HTML5 and multimedia support.

Quick Take

Analytical Summary

• Current Perspective: Moderate on WAC’s roadmap announcement at MWC, because business models are evolving quickly in the mobile app world, and the ability to allow developers to monetize their apps in new ways (e.g., app subscriptions, virtual goods purchases, in-app and ‘try and buy’ upgrades) is an essential WAC checklist item which this announcement acknowledges. The promise of in-app billing support by H2 2011 will be viewed favourably by operators struggling to attract developer attention in a fast-evolving market dominated by Apple and Google.

• Vendor Importance: High to WAC, an initiative which badly needed to address scepticism around its ability to move fast enough. At MWC, the WAC not only set out its achievements over its first year, but also issued new, near-term goals. If all goes according to plan, WAC 3.0 will allow operator members to offer developers the same kind of in-app billing attractions which Google has only just unveiled for Android Market developers and which are still new in the Apple developer camp.

• Market Impact: Moderate on the mobile media market, as the WAC is still in massive catch-up mode in terms of the attractions it can offer developers on behalf of its operator members, and this announcement does nothing to change that. However, WAC 3.0 does recognize new requirements in the developer camp, and this should win some confidence among operator members.

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Current Perspective

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