SurfKitchen, the UK provider of storefront services to carriers, has launched its first deployment in the U.S. with T-Mobile USA. SurfKitchen has integrated with T-Mobile’s web2go portal on the Nokia (NYSE: NOK) 7510, a low-end device, as a complement to the high-end bets T-Mobile is taking with Google’s Android. Release.
While the launch is limited to one phone, the deal is significant for SurfKitchen as it tries to help the carriers compete with app stores from other handset makers and providers. SurfKitchen’s CTO Dave Evans told mocoNews: “It’s pretty exciting and indicative of the overall ecosystem. We are seeing carriers be much more aggressive with what they do with app shops, as a way to differentiate themselves from OEMs. We are focusing how we support that.”
Last year, SurfKitchen decided to refocus its efforts more on application services as Apple’s iPhone took off. One such deployment was with the UK’s Orange, which wanted to create an application store to compete with Nokia’s Ovi, Google’s Android and other channels. The Orange store runs on a wide variety of phones, including Java, Android, Microsoft (NSDQ: MSFT) and BlackBerry.
Evans said while carriers find it important to invest in these services, the economic downturn over the past year hasn’t helped. Also, carriers are feeling pressured to invest heavily in network infrastructure, leaving less cash for other projects.
Still, he believes SurfKitchen is prospering. The privately held company has 55 employees and is profitable on a quarter-by-quarter basis. It has not raised capital since 2004, and has no immediate plans to do so. Contrast that with one of its U.S.-based competitors, Motricity, which is trying to raise $250 million in a public offering. Evans: “There’s a lot of opportunity. This will be a $13 billion marketplace in 2012. We continue as a viable concern, but I think we’ll see the number of players consolidating and potentially some will disappear over the next few months.”