Google is reportedly in talks with telecom operators to get a bigger slice of the Google Play app sales revenue.
In countries, where telecom operators have carrier billing tie-up with Google Play, Google gives 70 per cent of the app sales revenue to the developers, 25 per cent to the telecom operators and keeps the remaining 5 per cent for itself. The company now wants equal revenue division with telecom operators.
Jung says that talks with telecom operators are currently underway in South Korea; however Schachter believes that Google is in similar negotiations outside Korea too.
If Google manages to get telecom operators on-board, its revenues will increase by almost three folds and it will be able to bring in 500 million in Google Play profits in 2014, thinks Schachter.
For a business like Android that does not generate any direct money for Google, even 500 million in profits is good.