Last night, I taught an intro class on Android. I got the question that I always tend to get: How do you make money with Android apps? Thanks to a post from FierceMobileContent, I now have a better answer than the Android Market.

Multiple new Android app markets are being created with better options for developers to get paid for the apps To quote the post from FierceMobileContent,

Developers in only nine countries are presently able to offer paid apps via Android Market–moreover, paid apps are available in only 14 of the 46 countries that the storefront serves. On top of that, consumers must register for a Google Checkout account in order to download paid Android applications, except in locations where operator billing is available.

Developers can now try other options including Amazon’s upcoming apps store and Verizon’s V-Cast store with billing directly to the customer’s phone bill.

The competition among the wireless carriers have heated up to the point where Sprint and Verizon are about to open their systems to make them really useful for their customers. (Finally!) Sprint and Verizon are working on ways for apps on high end phones to be able to locate the user. It is a year behind the iPhone and 3 months behind the Google phone, but better late than never. The real question is will developers put much effort into developing for these platforms? For example, Sprint is planning to open their systems using partners like uLocate and WaveMarket. These solutions have been out their for a while. What is the new incentive to create apps around these other companies’ apps? And what kind of hassel will developers have getting location info in this round about way?

Alltel is working with Trimble to create a new app that lets uses plan and keep track of their travels on their phones. They can also attach photos, audio and video from the trip to specific lat,lon coordinates. As opposed to several free Web 2.0 services that have these functions, this service cost $40/year. Some people might pay for it for the convienence, but only if they are unaware of the free options.

Looks like that AllTel deal is getting a little pricey for Verizon. They have decided to start raising the rates for for-profit companies that use SMS messages to communicate with their users. The fee is supposed to increase to 3 cents per message. This sound small, but it is a huge increase to companies that were just paying a fraction of a penny before. If the fee is put into place, it may force mobile content companies to abandon their Verizon customers.

Such a huge increase does seem weird. Is Verizon trying to get rid of third-party web sites and mobile content providers? I can see the short term biz plan to raise revenue in the short term, but at what cost in the long term?

After reports of increases in the faster decline of landlines comes some good news from the carriers. Wireless data in the U.S. is growing, by 40% just this quarter compared to last year.

The biggest winner is Verizon. It saw its wireless data revenue up to $2.6 billion this quarter and is predicting that annual numbers will top $10 billion. Since it will have total revenues for the year somewhere around $100 billion, this is about 10% of its revenues.

The best part of these numbers is that Verizon and the other carriers are beginning to realize that it makes sense to open its networks to third-party app developers. They are starting to realize that they are not be best at deciding what apps the customer may want and that their best strategy may be just to deliver the data that the customer wants when he wants it.

What a concept! It is like the Internet in 1995 all over again.

Verizon and Alltel had announced that Verizon will buy AllTel. Technically, they are being bought for $28.1 billion, which is slightly higher than what it cost a private equity group and Goldman Saks to take it private at $27.5 billion last year. It is really not as simple as a $0.6 billion profit. Verizon is paying $5.9 billion in cash including $1.4 billion in cash that is already in Alltel. The rest $22.2 billion is debt that Verizon has agreed to assume. But Verizon is sure to refinance the debt portion, so it is an even better deal for Verizon.

Verizon and Alltel are like mirror opposites when you look at their coverage maps. They are a perfect fit and use the same technology. It is a win-win for all, except maybe for Alltel’s customers. Their combined customer base of over 80 million customers will top AT&T’s 71 million to make Verizon the biggest US phone company.

Just remember that these huge US phone companies are still small compared to China Telecom with its 250 million subsribers. And China Telecom is dwarfed by China Mobile with its 400 million subscribers. For some perspective, the population of the US is just over 300 million men, women and children.