Monday, May 19, 2008
Presence Takes Center Stage In Converged Services Offer; Multi-tasking Drives A New Era Of Telecoms
Buzz about location-based services (LBS) is increasing daily as start-ups, news sites and industry conferences sharpen their focus on the delivery of all things digital to people on the go. However, the value proposition that began first as an industry promise to improve the delivery of location information has since evolved into an ambitious effort to deliver users information relevant to their location. The focus is not so much on maps and navigation as it is on the tools and technology guaranteed to deliver the right users the right information at the right place (and even the right time).
Such topics will no doubt dominate the discussion at events such as Mobile Location Services 08, an industry conference organized by Informa that opens in Prague tomorrow. The top-billing given to topics such as mobile search, content discovery, social networking and mobile advertising – all in combination with LBS—is clear evidence that location has crossed the chasm. It is no longer a nice-to-have niche service; it’s a must-have feature of a wide range of mobile services and applications. In line with this I believe the real value around LBS will be context – and the real debate will revolve around the key role for the operator and whether it can charge a premium for its value-add.
But location is only a part of the equation. It is still early days, but signs are clear that presence – along with the multitude of converged mobile services presence can enable – is poised to be the next “big thing.” Presence information goes beyond location to provide an indication of a user’s status, availability, and even mood.
In fact, a recent Frost & Sullivan White Paper, outlining the potential opportunity presented by presence-enabled services such as messaging, concluded the industry is on the cusp of a new market that will drive increased mobile data usage. Overall, this new segment – which Frost & Sullivan calls Contextual Messaging and Presence – is expected to be worth $6.1 billion by 2012.
The results of a recent survey conducted by YouGov for Colibria, a provider of mobile instant messaging (MIM) and presence-enabled solutions, further confirm presence-enabled messaging covers the bases to be the next mega-trend.
The survey of 2,000 online respondents in the U.K. found that more than 80 percent of respondents interested in MIM would be more likely to chat with contacts – friends, family and colleagues - on their mobile phone if they could see their presence.
The survey picked up on a new interest among consumers in using technology to express themselves as a direct extension of their personality. What started as a novelty feature linked to social networking sites such as Facebook, which enables members to continually update their status, availability, mood and even interests, now tops the list of what consumers want on their mobile.
Indeed, 43 percent of those surveyed admitted that they would update their presence information on their mobile every day. What’s more, 17 percent of respondents said they would update their presence a few times a day and 5 percent reported they would “constantly” update their presence throughout the day.
But don’t think presence is a mobile-only play. Two thirds of respondents (58 percent) stated that if available they would use a MIM service to chat to their friends via their TV sets or even using the communications capabilities built into their gaming consoles.
The good news: There is a real and exciting revenue opportunity around the delivery of presence-enabled services such as MIM. The better news: It’s a value-add consumers are willing to pay for.
Read between the lines and it’s clear that consumers want to be constantly in touch with friends and peers. They require the ability to develop and express their identities through their mobile phone, regardless of where they are or what they’re doing. Granted, SMS is still a huge part of personal mobility and communications, but operators should be aware that presence-enabled messaging – such as MIM – will likely be a key component of mobile services going forward.
Against this backdrop, operators will need to build the capabilities mix to offer a more than a new spin on old messaging services. They will need to support the array of Internet-based social networking and community services consumers have come to expect. Only operators who can combine both will be best positioned to benefit as consumers move from simple two-way exchanges to constant, contextual and fully connected conversations.