When it comes to mobile telecommunications in South Africa, we have one of the most dynamic markets in the world. According to the GSMA African Mobile Observatory report published in September 2011, South Africa has approximately 59 million mobile connections.
With improvements in design, advancements in technology and new cost-effective manufacturing processes, original equipment manufacturers (OEMs) are releasing ever more smartphone variants that are finding their way into the wider mobile population. At the same time, mobile network operators are improving data networks that allow smartphones to do the amazing things that they can do. Perhaps most importantly, the decreasing price of mobile data is contributing to an ever-expanding ecosystem.
In 2008, Steve Jobs and Apple changed mobile with the introduction of the iPhone App Store via an update in iTunes. The Apple App Store ecosystem created one of the world's first “workable” mobile ecosystems. The world's mobile development community has been one of the main beneficiaries of this platform. Apple provided developers with a relatively simple framework for developing mobile applications, removing a developer's biggest challenge: device fragmentation. This created a structure for monetising mobile applications through a relatively simple 70/30 revenue share split, with the majority reaching the developer. Over the past three years, mobile application development has skyrocketed, and we now see the likes of Google, Amazon, Nokia and many others either introducing app stores or racing to improve their current offerings.
The numbers coming out of the various app stores are staggering. For example, as of December 2011, the iOS (Apple's phone, iPod and tablet operating system) app store generated over 18 billion downloads from around 500 000 applications loaded from well over 200 million devices globally. We saw the same with Google's Android, with Andy Rubin (head of Mobile at Google) indicating in December 2011 that there are over now 700 000 Android device activations per day across the globe. It is projected that the Google Market (Google's App Store) will overtake the Apple app store in terms of available applications during the course of 2012. Mobile forecasting and research house Portio Research has indicated that mobile application revenue will hit $9.5 billion by the end of 2011. All these figures point towards a very attractive opportunity for developers.
In terms of mobile handsets across numerous types, the following diagram from @visionmobile gives a great indication of the mobile handsets that are in market across the world.
With smartphones becoming widely available in SA (approximately 7 million devices in the market), the mobile application craze has struck, with locally developed applications taking off. Companies like FNB, News24 and DStv are releasing cross-platform applications and services geared towards the South African consumer.
But with the interest and growth, where does that leave the local garage developer? Numerous industry experts say that some of the key challenges facing the developer community in South Africa include:
* Small venture capital/angel investment environment;
* A lack of mobile programming training programmes and courses at tertiary institutions;
* The difficulty of taking an amazing app idea and actually implementing it;
* The business of application development (monetisation, production and marketing);
* Understanding revenue channels and available billing mechanisms;
* Knowing which programming framework and platform(s) to develop on;
* Lack of locally relevant mobile industry information;
* Application porting and device fragmentation; and
* Lack of devices to actually test applications on (fragmentation).
But there is light at the end of the proverbial tunnel. Numerous developer-orientated initiatives and programmes are launching across the country, creating avenues for garage developers to engage in the industry. Some of the initiatives that I have spotted include, but are not limited to, the following:
* GTUG (Google Technology User Group): A group of developers with chapters in Jo'burg and Cape Town meeting once a month. (www.jhb.gtug.co.za and www.capetown-gtug.org).
* The mLAB (www.mlab.co.za): A mobile applications laboratory, which incubates innovation and entrepreneurship in mobile apps and content services. The aim is to support the mobile developer and entrepreneur community in southern Africa through a range of services, including training, handset testing, business incubation, mentoring, and holding networking events.
* MOMO Joburg Tech (www.momojoburg.com): A bi-monthly event providing an open forum for developers to engage with each other as well as others in the mobile industry. Numerous guest speakers and industry experts are invited to present and share their knowledge.
* Vodacom Developer Programme (http://www.vodacom.co.za/developer): Vodacom SA has recently launched an application developer programme to stimulate the local garage developer community.
In my engagements with industry experts over the last few months, the following key points were raised that I firmly believe local developers and all parties who are involved in mobile applications need to be aware of:
* South African developers need to stop hiding and make themselves known.
* Players in the South African mobile industry need to make themselves more available and engage more with local developers.
* Developers across the board need to get in now and do it right. Quality over quantity is vital in application development.
* Mobile applications are 10% development and 90% business and marketing.
* Successful applications like Angry Birds work because of the production, storyline and revenue models applied.
* Know what you are getting yourself into when committing to mobile development.
All parties in SA engage in mobile applications. This applies to the mobile operators, OEMs, WASPs and content providers, advertising agencies, media owners, platform and billing owners, and products and services companies, who all need to work together to grow the business.
Always bear in mind: it is not an EGOsystem, it is an ECOsystem.
If you have an interest in mobile applications and would like to see what's happening in the developer community in SA, MOMO Joburg will be hosting an event with Vodacom Digital Media. For event details, go to http://momojoburg.eventbrite.co.za.
* Jonathan Hoehler is chief technical officer and business analyst at Starfish Mobile International. With almost eight years of experience in the mobile telecoms space in Africa, Jonathan explores new business and revenue generating opportunities across the African continent. He is also on the committee of Mobile Monday (MoMo) Joburg.
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