Can Carriers Stop Bickering Long Enough to Kill the App Store?

Ever since carriers became just a pipe for Apple’s iPhone, they’ve attempted to regain some of their lost control over customers. Now comes word that two-dozen major carriers – including AT&T, Verizon and Sprint – want to build an App Store rival, enticing developers with an unspecified “open technology platform.”

Analysts are already sounding warnings, cautioning with so many sharks swimming so close together, there’s bound to be trouble. “I do question whether such a large group of mobile operators will be able to achieve the level of cooperation and integration required to make this initiative a success,” said Informa Telecoms analyst Mark Newman.

Newman could be right. Remember just last year when Verizon touted its VCast as an App Store-killer? Remember the lawsuits between AT&T and Verizon? Then there is the constant dog-fight between AT&T and Sprint. Somehow, these competitors are supposed to have a kumbaya moment?

As the shift from differentiating your service moves from who has the coolest-looking handsets to who offers the best software apps, Samsung, Sony-Ericsson and LG are expected to join the carrier’s Tuesday announcement at the Mobile World Congress, according to the Sunday Times. But developers – the group both carriers and phone makers want to attract – don’t seem interested in attending the new walled-garden.

“They are more interested in developing apps for Apple and Android and have historically distrusted operators because of the unfavorable revenue share deals that have been on the table,” Newman said. Indeed, many developers “would rather operators keep out of the applications development community entirely,” he said.

A more practical option for carriers to competing with Apple, Android and RIM for the smartphone market, could be to attract more customers looking for $100 handsets and simple Internet needs. “If operators can bring out € 100 ($135) devices with a good mobile Internet experience they may be able to sell data plans to more lw-end users,” the analyst added.

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[Via Sunday Times and 9to5Mac]

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