VoIP Will Cannibalize Mobile Voice

VoIP always has been a troublesome issue for established voice providers. On one hand, it has promised the ability to create and deliver new and richer services. On the other hand VoIP has had the potential to essentially cannibalize the single most important revenue stream a telco or mobile service provider possesses. VoIP will cannibalize existing voice

O2's plans to offer VoIP technology are an example. O2 Connect is a new mobile service that allows smart phone users to use voice and text services over Wi-Fi networks from their mobile number. Users can call or text to any U.K. mobile or landline number using the service.

O2 Connect will initially be available on iOS and Android smart phones and will subsequently roll out to other devices. O2 Trials VoIP Service


The trial will commence in October 2011 by invitation only and will include O2 consumer and business customers. All of the traditional challenges are present in the test. O2 hopes to provide higher value and greater flexibility for its customers. But O2 Connect also can displace some of the revenue O2 otherwise might earn from voice and text messaging services.

"Internet of Things" has Same Attraction as SMS, for Mobile Service Providers

The "Internet of things" has gotten attention recently for several reasons. 


One reason is that analysts, academics and journalists, not to mention mobile service provider executives, need something new to talk about. 


Another reason is that machines and sensors represent the clearest way for mobile revenue and services to grow. Most people who want a mobile device now have one.

Mobile broadband for smart phones and tablets will be an important source of revenue growth for some time. Beyond that, to keep the business growing, service providers must tap a whole new class of services and devices other than "phones" or other devices people use. That means sensors, security cameras and other telemetry devices. 

But there are some other benefits as well. Many telemetry applications do not use much bandwidth. So the attraction is similar to that of short message service: high margins and low bandwidth consumption. Industrial and other specialized applications also will be more churn resistant.


“A machine is not going to churn as fast as a consumer,” said Robert Mesirow, CTIA vice president. In part, that is because specific sensor applications typically will be embedded in some larger business process with scale implications. One consumer can swap a phone or a service provider without hassle. That will not be true for large sensor networks.


There are challenges, to be sure. Many sensor applications will feature low gross revenue, which has significant implications for the design of such services. Sensors often will have to be very low cost, very easy to deploy and support, while the recurring service costs also will have to be optimized. 


Still, when an industry runs out of customers, finding new customers is highly significant. That's why much attention will be paid to sensor networks and applications. 

Why M2M is important

Enterprises Don't Generally Track Social Data

Of the 1,700 chief marketing officers that took part in face-to-face interviews for an IBM study, the vast majority (80 percent) said they rely on traditional market research channels and techniques or sales campaign analysis (68 percent) to guide marketing strategies.

About 26 percent also track blogs and 40 percent track "any online communications."

And yet, despite being unable to use the tidal waves of consumer data generated by social media, 82 percent of CMOs said they plan to increase their use of the channel over the course of the next three to five years.

More than half of the respondents report they are not prepared to to manage social media or the shift to customer influence over reputation and branding processes.

Marketers suffering data overload

Square Targets Larger Retailers

Up to this point, Square has had most success with smaller and independent retailers. But it now is looking at larger retailers. One indication is a change in its policy of delaying retailer payments exceeding $1,000 per week, a policy Square originally implemented to prevent fraud, according to company CEO Keith Rabois. "Now that we've been commercially available for a year, we can now spot statistical anomalies."

Such an improvement stands to lure larger stores into Square's fold, since they won't have to wait up to one month to receive their money. At the moment, Square's base is mainly small businesses, 70 percent of which did not previously accept credit cards because of associated fees.


The San Francisco, Calif.-based company now boasts 800,000 merchants and processes $2 billion in payments, according to Rabois.

Square Aims to Attract Bigger Merchants

North American Social Games To Total $2.4 Billion By 2014

SuperData estimates the North American social games market to grow 35 percent in 2011, reaching $1.4 billion, and projects total consumer spending on social games to total $2.4 billion by 2014.

North American Social Games To Total $2.4 Billion By 2014

Zynga Is Launching Its Own Social Network

People who weren't so keen on Google+ now will have "Zynga Direct" as one more social network to contend with.

The first component of Zynga Direct is a sign-in platform codenamed Project Z. It will launch later this year, Business Insider reports. It's quite a rational move, though. Zynga now is completely dependent on Facebook, and Zynga Direct should reduce that reliance.

Zynga Direct is a more general name describing Zynga's new direct-to-consumer strategy. The idea is that you can play Zynga games outside of Facebook, and across multiple platforms.

Zynga Is Launching Its Own Social Network

A Clock Only for "Geeks"!

Googlers would think up something like this, wouldn't they?