China Telecom Reveals Cooperation Models for App Store

Netease Tech, 9/25/09

At a developer invitation conference for China Telecom's (NYSE: CHA; 0728.HK) E-Surfing Space App Market in Guangzhou today, the director for the E-Surfing Space project center revealed that China Telecom's app store will offer a revenue share of no less than 70% for cooperating app developers. The director also added that E-Surfing Space will consider individual revenue share negotiations and in-depth cooperation with developers of top-quality time- or data-transfer-based applications.

China Telecom's app store will adopt four modes of cooperation: First, outsource app development to third-party developers, for which Telecom will pay a fee up front but retain ownership rights over the application; second, invite developers to join the platform and enter into a revenue sharing agreement; third and fourth, cooperate on distribution and operation, which China Telecom will determine through negotiation with partners on an individual bases.

According to Cui Peng, project operations supervisor at E-Surfing Space co-developer Huawei, E-Surfing Space users are expected to reach 14 mln in 2010, and 70 mln after five years.

Keywords: Cui Peng China Telecom wireless app store E-Surfing Space revenue share 0728.HK CHA

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