Mobile Application Development Challenges & Opportunities in Bangladesh

2nd June 2013

Presented by: SM Ashraf Abir, CEO, MCC Ltd

abir@mcc.com.bd, +8801755520220 www.mcc.com.bd

MCC is an award-winning commercial organization specialized in the development of mobile application and multimedia content, in all aspects.

Examples: Mobile Apps by MCC ltd

TOTAL DOWNLOAD

3.6 Million TOTAL COUNTRIES

199 Countries

…

Why Mobile? The mobile network is the world's largest distribution and communication platform, with more than

6,000,000,000 (five billion)

subscribers worldwide.

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Phone Ads

2008

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Phone Ads

2013

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Case Stud ies Where is Bangladesh?

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C a s e S t u d y 1

Outsourcing Mobile app development as a career IT job site Dice.com found that job postings for Android developers soared 302% in the first quarter of this year Elance.com, In the first quarter of 2011, there were 4,500 mobile developer jobs posted on the site An impressive 47% of all mobile jobs posted came out of the UK, with 53% of work in mobile app development. A skilled programmer should be able to move between languages fairly easily, since mobile development essentially just involves learning a new syntax.

Refrence link: http://econsultancy.com/bd/blog/10521-demand-for-mobile-freelancers-soars-trends

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Skills in demand & Earning MCC Ltd 2013

C a s e S t u d y 2

To be a Hero Become a Mobile app entrepreneur Angry Birds Maker Rovio Says 2012 Sales Up 101% To $195M With Merchandising, IP 45% Of That; Net Profit $71M Fruit Ninja' Makes $400,000 a Month on Ads

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C a s e S t u d y 3

A P o o r D e v e lo p e r Nokia Store (Bangladesh Market)

from Bangladesh 1.3 million initiate download per week 70+ million download per year Average Application Size : 1 MB Average Total Mobile Internet Usages: 1270 GB (1.3m/1024) – Max calculation (Pay As You Go at BDT 0.02/KB) Per MB Internet Cost: 20.48 + 15% VAT = 23tk (avg) Total Revenue Per Week (All Operator): 29.9 million Total Revenue Per Year (All Operator): 1.43 billion (143 core) Minimum Calculation: 1GB Package P6 @ BDT 300 @3tk = 19core Handset benefits: Handset Marketing, Increase Sales Total Revenue (Application Developer): 0 Total Revenue (Content Developer for Apps): 0

Yes we have Global Opportunities. But …

Lack of need assessment /research facilities

No Paypal for money transfer

Delay in wire transfer

Limited international credit card access (developer can’t open account even/not allowed international purchase except basis member for software)

Expensive development cost for operator’s platform

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G l o b a l ( 7 0 % ) 4 0 0 m i l l i o n Store Account with Credit Card Operator billing 70+ countries

$ 5 . 5 P a i d t o d e v e l o p e rs ( 2 0 1 2 )

L o c a l ( 4 0 - 5 0 % ) AloAshbei paid mobile app portal which is connected to one telco Symphony in device app portal (one telco) EATL app portal (local credit card & BIKASH) Get out-app purchase module using local payment gateway

SSL/Walleto

H o w to Ear n Mo n e y ?

Free app can get revenue from advertisement

Paid app on IOS, NOKIA, BB, WINDOWS get payment by Bank Wire Transfer

Working for clients as freelancer/outsourced employee

Current Scope for Developer MCC Ltd 2013

Global Smart Phone Market Share

2009 2012

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am on g MC C ’s

3.6

Million Download

Local Smart Phone Market Share

Sy m bia n s t i l l re i g n s w i t h

88% Share

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T he Market for Pa id App

Dow nloads Exc eeded US$

8bn in 2012

Total app market revenue and average revenue per app (to 5 app stores*) (2011-2012E)

G a m e s E d u c a t i o n E n t e r t a i n m e n t B o o k s L i f e s t y l e U t i l i t i e s B u s i n e s s M u s i c

App Categories

S p o r t s N e w s P h o t o & V i d e o F u t u r e M e d i c a l S o c i a l N e t w o r k i n g W e a t h e r F o o d & D r i n k s

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Mobile Application Eco-System Idea /Business Model

Hardware (Mobile Device)

Application Development - Programming - Graphics

Apps Store (Distribution) International - Nokia - IOS - Android - Black Berry - Windows

Apps Store (Distribution) Local - EATL - Alo Ashbei (GP) under construction - Symphony (under Construction)

App Monetisation GNR (Under Construction) Inneractive Admob

Payment Option

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Pay-Per-Download Pay-Per-Issue/Edition Download Pay-Per-Impression Pay-Per-Click In-Application Subscription Free with Advertising Start Free, convert to Paid Free AND Paid version Free and Donate Gift an App

Revenue Options for

App Developer 7 0 D ev e l op er

3 0 S tore

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so… what are the Challenges?

If you are not located in any of the countries listed below, or do not own the required bank account for receiving payments, Google may not be able to pay for the sales in that account by any other means.

local price point is required for Bangladesh market which is not available at the moment

International remittance is a challenge in Bangladesh for which the permission and payment process may take around 3-6 months For every international remittance, there is a TAX of 10% and VAT of 15% on the remitted amount which makes the business case poor In Bangladesh end customers are charged 15% VAT for every telecom service consumption which needs to be displayed on Apple AppStore and Google Play store. Both Apple and Google does not support such price display at the moment etc…

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Recommendations to grow Mobile Application Industry in Bangladesh

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Operators need to receive permission or opportunity for outbound remittance.

It is necessary to reduce tax rates for outbound remittance. BTRC needs to take the necessary steps to allow mobile operators

to have operator billing in international mobile application marketplace ie Google Play, NOKIA Store, Windows Store etc.

Permission to use locally issued/local credit cards for purchase on internet from global sites, and bank service in this regard needs to be ensured.

Approval of Value Added Policy Guideline by BTRC

1. Outbound

Remittance Tax &

Policy issue

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Developers involved in the mobile app market need to be encouraged and their skill set and work facilities improved by ensuring

- financial support - subsidies facilities - cheap Internet service - uninterrupted power and - the option to rent spots at Hi-tech parks at low or no cost and

for a long duration

Financial support needs to be given to local companies showcasing their products at international mobile application related events, so that foreign companies are encouraged to pick Bangladeshi app developers & companies.

2. Industry support

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Programmes focused on promoting awareness of the mobile app market and raising the technical skill of app developers need to be undertaken on a national level.

There needs to be public-private partnership projects, both short and long-term, to build up a skilled generation of app developers, in co-operation with organizations that are currently working with mobile applications.

International standard education on the technical aspects of mobile app development must be provided at the university level.

Mobile application labs need to be established nationally.

3. Capacity Building

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All government & popular public services (most demand) must be available via smart phone mobile applications in local language

Along with all necessary mobile payment option using operator billing facilities.

4. New

Services Launch

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Thanks