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Monday
Mar162009

Google Voice: "One of the big holes right now is in the management of voice communications"

Pinky: Gee, Brain, what are we going to do tonight?
Brain: The same thing we do every night, Pinky - try to take over the world!

Last week Google announced that GrandCentral, acquired by Google in 2007, is now Google Voice, with new features including voicemail to text and archive and search of SMS text messages.

Analysts and bloggers are divided on how this will impact voice revenues from local and international calls, but the ability to offer free Internet calls will surely be seen as a threat. When Nokia announced last month that Skype came preloaded on the N97, it incurred the displeasure of mobile operators. According to Mobiletoday.co.uk, UK operators Orange and O2 may end up refusing to stock the N97 unless Nokia eliminated the application.


The incursion of Skype and Google into telecommunications adds to the mounting pressure mobile operators are facing from new players. Last year, when Apple announced it was opening up its platform to developers, they redefined the power balance in the industry; technology vendors and developers now have access to the mobile market without having to go through an operator. The result? Apple's AppStore is expected to become a $1 billion business by the end of 2009 and other major players have announced their own App Store including RIM, Nokia, Microsoft and Palm.

Vincent Paquet, a co-founder of GrandCentral who is now running Google Voice, stated that "Google is all about helping you manage your information and one of the big holes right now is in the management of voice communications".

Paquet's statement is relevant because he highlights yet another missed opportunity by mobile operators. A recent report from Frost & Sullivan placed the spotlight on Unified Messaging (UM), a technology that facilitates anywhere and anytime access to non-real-time messaging. According to Frost & Sullivan, UM contributed approximately 51 percent of the total enterprise voice and UM market revenues, a market that earned revenues of $708.1 million in 2008 (Cellular News, Feb 26 2009). Mobile operators, however, have not showed much enthusiasm in this service. Technology vendors including Comverse, Ericsson and Unisys introduced this service several years ago and it has evolved to reflect new developments such as voice mail transfer to e mail, web access and single access to voice, fax and e mail messages. Operators, however, have stayed with basic voice mail services, with functions that have not changed since they were first introduced almost twenty years.

The mobile market continues to evolve at a rapid pace and there are many new and exciting opportunities waiting to happen: converged messaging, mobile advertising and mobile/Internet convergence to name a few.

Mobile operators can still leverage their position in the market, but with new players moving in and filling the "big holes" in voice and data, they will have to redefine their business models and partner with the new players; at this stage of the game, this might be their only option to take advantage of new opportunities and more importantly, respond to threats in a new business environment where they no longer have the last word.

Friday
Mar132009

All I Really Need To Know About Mobile Applications I Learned from Apple

"Live a balanced life - learn some and think some and draw and paint and sing and dance and play and work every day some." - Robert Fulghum

The market for mobile applications has changed significantly in the last four years, when I first started working with these applications.

Four years does not sound like a long time but in this industry it means I have lived through several generations of devices and have seen some applications take off and many others fail.

This year, analysts expect mobile applications to really take off; it is very exciting to see the industry reach this point, so I thought I'd share my experience and what I've learned in the process.

Back then, Comverse was working on developing client applications that used new device capabilities to enhance network based services. These services included Call Completion, Mobile Instant Messaging, Address Book Backup, Mobile Email and Visual Voice Mail; each of them had different technical and commercial issues, but there were some challenges that we faced across the board for all mobile based applications.

One of the biggest challenges we had in bringing these services to market was having to develop a client application for different devices and a mechanism to download this application to the handset. We explored different options, including partnerships with SIM vendors and handset manufacturers.

The main challenge we faced, however, was a strong resistance from operators, who found working with mobile based applications too complicated. This was not only because of the issues related to developing client applications for a large number of devices; we also faced a huge challenge when it came to discussing revenue share for content based services.

Comverse has adapted to the market, eliminating some of these products from their portfolio. They have, however, been very successful with two of these services: Visual Voice Mail and Instant Messaging. Interestingly, Visual Voice Mail did not gain any traction with operators until Apple launched the iPhone with Visual Voice Mail as an embedded application.

Last year, Apple announced it was opening up its platform to developers. Apple has been hugely successful; the AppStore now has over 25,000 downloadable applications and is expected to become a $1 billion business by the end of 2009 (ChannelWeb).

This is relevant not only because of the revenue stream it represents but also because this move by Apple redefines the value chain and the power balance in the industry; technology vendors and developers now have access to the mobile market without having to go through an operator.

Like everything else in Appleworld, there are many restrictions in the AppStore that developers have pointed out; many are valid complaints. Apple, however, has managed to define a business model that works for all the parties involved, developers get a 70 percent cut of sales, Apple benefits from selling more iPhones and operators gain traffic.

Apple's model might not be to everyone's liking but after years struggling to define an agreement with operators I am happy to see that someone finally came up with a plan that works and effectively opens up the mobile market for everyone, not just the iPhone and AT&T. Earlier this year, everyone who's anyone announced at the Mobile World Congress week in Barcelona that they too will have an AppStore: BlackBerry Applications Center, Nokia’s Ovi Store, Windows Marketplace, Palm Software Store, Android Market and App Store for Symbian.

All I Really Need To Know About Mobile Applications I Learned from Apple.

Ok, not really. But when the iPhone was introduced at Macworld 2007, Apple changed the rules of the game and operators, technology vendors, content providers and handset vendors had to learn to play by these rules, whether we liked it or not.

So far, I like it.

Inspired by Robert Fulghum's "ALL I REALLY NEED TO KNOW I LEARNED IN KINDERGARTEN". See his web site at http://www.robertfulghum.com/