Android to increase mobile penetration in emerging markets

R Jai Krishna

New Delhi

November 13th, 2007

Internet giant Google's offering for the mobile phones - the Android platform
- is aimed at increasing mobile penetration in emerging markets, as the number
of personalized cell phones is higher than the PC penetration.

The technology will also drive low-cost handsets, thus making communication
cheaper and affordable with the advantages of Web 2.0.

Affordable communication

Android, the Java over Linux platform, is not just a mobile platform, but
much more than that.

According to Andy Rubin, director for Mobile Platforms at Google, Android is
the first step in making the software for mobile phones much affordable than the
legacy systems.

"Android will enable better Internet user experience. Though the handset
prices have come down phenomenally due to the mass production in China and
Taiwan, cell phones are still a costly proposition, as majority of the cost is
involved in the software platform," he said.

With the platform being made available for the developer community from next
week, Google expects an Internet-ready smart-phone to cost about $100-150 in the
next couple of years.

Web 2.0 to Mobile 2.0

Google, which shot to fame with its innovative products and solutions in the
Web space, aims to replicate its success in the next phase through the
convergence of the cell phone and the Internet.

"Android will be the world's first mass-up platform for the mobile
segment. This will bridge the island between the Internet and the mobile
phone," Rubin said.

"People want to communicate with mobile phones, they want to be
connected with their social and community networks. The complete web-browser
experience is missing and Android will fill the gap," he asserted.

Google acquired Android in 2005. Palo Alto-based Android was just
22-months-old when Google acquired it. Incidentally Rubin, who founded Android,
had also worked with Apple.

Power of partnership

When asked about its competitors in the mobile space, namely Microsoft and
Nokia, Rubin pointed out the issue of Apache Portable Runtime (APR). "The
opening of the APR alone by the two companies does not help the industry, as no
differentiated services can be built by the developer community. However,
through the Open Handset Alliance, the codes for building the
killer-applications on Android is made available," he informed.

And that's only one part of the story; the developers will have the say in
building the next generation applications on Android platform, with HTC
launching the first series of mobile phones in the second half of next year.

Apart from the developer community, Google has also ensured that it is a
win-win game for all the stakeholders in the mobile business. "We will be
interacting with each of our partners who have been segregated as five
categories: semiconductor companies, content providers, service providers,
mobile phone manufacturers and developers through the Open Handset Alliance (OHA).
The only criterion for our partnership is that the partners should contribute
something for the development of the applications," Rubin said.

Through the OHA, in which Google has 33 members, the Internet-major has
ensured that all the stakeholders are involved in the final building of
applications, and hence making the software is more user-friendly.

The members featuring in the OHA are T-Mobile, manufacturers such as HTC,
Qualcomm, and Motorola along with Nvidia, eBay and Texas Instruments.

Nokia, Symbian, Microsoft, Apple, Red Hat, Sun Microsystems, Verizon,
AT&T, SAP, Sybase and Oracle have so far dissociated themselves from the OHA.

Symbian, Microsoft and Apple were unison in their opinion that Android does
not pose a threat to their operating systems. Nokia too, seconded the view.

Finnish Nokia holds 47.9 per cent in Symbian, the leader in mobile device
operating systems.

A million G-phones

Rubin did not rule out Google phone or the G-phone being rolled out in
future. However, he said that if and when the G-phone is launched, Android will
be the first and best choice.

"We are not announcing G-phone, but when a G-phone is built on this, it
will be so open and so sensible, it would be a very different innovation; and
Android will be the best choice. However, through the Open Handset Alliance, it
is not just building a single G-Phone but a million G-phones," he said.

Mobile devices are more powerful than computers today; the key difference is the
reality of software. In the current scenario, when the applications on a mobile
phone become obsolete, the only option is to junk it and go for a new one.

In the case of Android, the Google founders promise that the software can too
be updated and upgraded for the handsets, which will be compatible across most
of the manufacturers.

What the future holds for Android

With Google now committed to the mobilization of the Internet, as the
company sees new value in the mobile arena, Android will surely transform the
industry to wireless providers that brings more value to end-users.

Android will be in the real sense of innovation, only when the mobile
Internet and wireless customers in the US and Europe who will experience the
applications in 2008, testify of a better Internet experience in mobile
platform.

The company, which shot to fame with the contextual-based search advertising,
also sees a plethora of opportunity in the mobile space, and for the best for
customers, and developers. "We are enthusiastic about the new platform,
which will propel our strategy as a leading innovator in the space. From here,
Google will also replicate the advertising strategy for revenue generation and
sharing with other stakeholders," Rubin further added.

Though mobile companies such as Motorola, T-Mobile and Samsung have joined
the alliance, it might not be not too far when others join OHA, as in today's
market the consumer has the final word.