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Local Operator Billing Cooperation Should be with Google Play Store

2 mins read
June 3, 2012

My colleague, Aulia Masna, brought out a rumor about the possibility of cellular operator billing cooperation for app purchasing at the iOS App Store. Said operator is Indosat. Previously, Indosat managed to invite Research in Motion (RIM) to cooperate for app purchasing at the BlackBerry App World using Dompetku mobile payment system. To be honest, I think that rather than approaching Apple which has strict rules regarding this matter, it’s better than operator approaches Google for cooperation for Android app purchasing at the Google Play Store.

My reason is simple. iPhone (along with iPad and iPod) is relatively pricy looking at the niche market. This niche market is in the segment of A and B class (middle and upper class). Although there’s no guarantee that iOS device owner must own a credit card, so far I haven’t heard any complaint about this. Not being able to purchase at the App Store Indonesia is compensated by using iTunes Gift Cards at another country. Not an ideal solution, but it’s not a big problem, as well.

On the other hand, Android consumer comes from various economy classes. With a device starting in the segment of USD100 – USD200, Android device fits better for Indonesian consumer’s budget who wants more sophisticated smartphone solution – rather than messaging solution from BlackBerry. Some local vendors have also implemented Android to their devices. This market is bigger than App Store user and percentage of credit card owner in this community is lower.

This is an opportunity for operator to gain income cake, moreover the growth of Android owner in Indonesia shows an inclining graphic. BlackBerry itself, even though still being the most popular, still has no definite “future”. Consumer market and developer are still acting wait-and-see, waiting for whether BlackBerry’s new operating system can save RIM.

There’s a contradictive argument which said that Android user does not like to purchase app (legally). I think this is all about education. If they knew that purchasing app/game only cost them around IDR10.000 or IDR20.000 (USD0.99 – USD1.99, average price for most paid app) which equal to their lunch/cigarette money, it may not be a problem.

Other than that, developer will also be able to “trick” how to get income by charging no fee for the app and increasing the possibility of in-app purchase. Once again, I’m sure that Android user, even a student, is not someone who has difficulty to find meals three times a day.

The problem all along is the payment facility. If they don’t have a credit card, how they could pay for an app? As far as I know, Google Play Store doesn’t have a gift card/voucher-like solution, while Visa Electron card (debit card) hasn’t been received as an option for payment from Indonesia.

A win-win solution is if such step will encourage a productive app purchading and convince Google that Indonesia is a prospective market for Android products. When it comes to this, it’s not impossible that Google will open an opportunity for local developer to start selling apps and games in their own homeland.

So, which cell phone operator in Indonesia will start this step?

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