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Ericsson launches app store called “eStore”

Friday, February 19, 2010

The eStore is aimed at operators wanting to prevent churn.

Ericsson has teamed up with Opera to create its own application store aimed at operators wanting to prevent customers defecting to more advanced smartphone platforms.

The Ericsson eStore allows operators to set-up and offer an application store to their customers. Ericsson said it is already in discussions with a number of operators interested in the new service.
Launching the eStore at the Mobile World Congress in Barcelona today, Ericsson said it is designed for any mobile phone. The eStore already has more than 30,000 apps which are a mix of free and paid applications. Paid apps are bought via the user's phone bill.

Hans Vestberg, Ericsson's CEO, said: 'It will provide operators with an open landscape and an opportunity for them to quickly set up their own app stores. The revenue split will follow the traditional model, with Ericsson retaining only a small percentage.'
Opera co-founder Jon von Tetzchner said: 'With this additional revenue stream, operators can now better target new users groups and retain existing customers through new, useful applications that can run on multiple device types.'

Ericsson is hoping the eStore will attract developers, since it offers a one-stop shop for multiple operators.
Ericsson is the latest mobile player to challenge the supremacy of the Apple App store. However Ericsson faces competition from its own Sony Ericsson joint venture, which yesterday announced a partnership with Samsung, LG and 24 operators worldwide to develop an open international applications platform.

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