IM Emerging as a Disruptive Force for Telecom Voice Services, New Report Finds

Voice over IM threatens to transform the total communications experience and forever alter consumer expectations, according to Heavy Reading

PRNewswire
NEW YORK
Feb 22, 2007

NEW YORK, Feb. 22 /PRNewswire/ -- With hundreds of millions of users worldwide, instant messaging (IM) is now firmly established as a popular platform for real-time communication, and operators of IM networks are now looking to leverage that popularity by adding robust voice services to IM -- a development that will have significant ramifications for providers of conventional voice services, according to a major new report from Heavy Reading (http://www.heavyreading.com/), the market research division of CMP Technology's Light Reading (http://www.lightreading.com/).

Voice Over IM: Enabling a New Telecom Services Model takes a close look at VOIM technology, the companies providing these services, how their offers differ, how they are being used, and the possibilities they hold for the future of telecommunications. It analyzes ten VOIM service offerings, with in-depth profiles of eight different service providers. It also evaluates the products and market positioning of 11 different VOIM-related service and technology providers.

"VOIM is transforming the communications experience by integrating multiple functions into one simple service," the report states. "Users are able to easily move from text chat to file sharing to voice to video communications -- all using a single, intuitive interface. As one service provider explained, 'This is about the total communication experience,' and consumer expectations will be heightened as a result."

IM-based services such as VOIM could potentially have a huge impact on service provider revenue models, the report continues. "Advertising is the core revenue base for IM operators and most VOIM operators. The model continues to be refined, but the direction is clear: VOIM operators seek to gain revenue by increasing the number of advertising events and the quality of each event. With targeted ads and click-to-call options, VOIM operators seek to gain premium rates for connecting users with businesses. Any large-scale success of IM-based services will place enormous price pressure on conventional revenue models based on subscriptions or usage minutes."

Other key findings of Voice Over IM: Enabling a New Telecom Services Model include the following:

VOIM operators don't want to be telephone companies, and most don't view their services as directly competitive with the public switched telephone network (PSTN). Rather, they see their services as enhancing the overall communications experience of their users. Still, effectively no-cost voice calls placed via VOIM services compete directly with long-distance providers, and economical (or even free) inbound numbers compete with local services.

VOIM operators are taking voice quality very seriously. Quality becomes a key factor for differentiation by VOIM providers, since the barrier for switching service providers is very low and cost avoidance due to customer- care issues is important with a free service.

One key advantage of VOIM is IM's superior presence detection. Presence improves the overall productivity of communications by providing robust, immediate information on the availability of a person, device, or application to communicate. More subtle forms of presence provide even richer information, such as whether a person is busy or on the phone, what their mood is, or what their preferred mode of communication is -- i.e., email, IM, phone.

Interoperability issues that have limited VOIM's mainstream appeal will be resolved within the next two years, as IM service providers begin to interconnect their networks. Major networks such as Windows Live Messenger and Yahoo! Messenger with Voice have already interconnected their IM services, and other interconnects are underway in the industry. VOIM interconnects will follow as operators work through protocol-compatibility issues.

Voice Over IM: Enabling a New Telecom Services Model is essential reading for a wide range of industry participants, including the following:

* VOIP and VOIM technology suppliers: How will increased use of VOIM
affect demand for your products? Which technologies and platforms are
emerging as the most likely winners in the VOIM sector? Is your company
positioned to take advantage of those anticipated changes?
* VOIP and VOIM service providers: How do your plans for voice services
compare with those of your competitors, and how will the emergence of
VOIM affect those plans? How will market timing for mainstream VOIM
affect your service portfolio?
* Investors: Which technologies and platforms are emerging as the winning
solutions for VOIM, and which companies are the leading providers of
those solutions? How will VOIM affect profitability for the telecom
services sector in the coming months and years?

Voice Over IM: Enabling a New Telecom Services Model costs $3,995 and is published in PDF format. The price includes an enterprise license covering all of the employees at the purchaser's company.

For more information, or to request a free executive summary, contact:
Dave Williams
Sales Director, Heavy Reading
858-485-8870
dave.williams@heavyreading.com
Press/analyst contact:
Dennis Mendyk
Managing Director, Heavy Reading
201-587-2154
mendyk@heavyreading.com
About Heavy Reading

Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next- generation hardware and software.

About CMP Technology

CMP Technology (http://www.cmp.com/) is a marketing solutions company serving the technology industry. Through its market-leading portfolio of trusted information brands, CMP has earned the confidence of more technology professionals than any other media company. As a result, CMP is the premier provider of access, insight and actionable programs designed to connect sellers and buyers in ways that yield superior return on investment. CMP Technology is a subsidiary of United Business Media (http://www.unitedbusinessmedia.com/), a global provider of news distribution and specialist information services with a market capitalization of more than $3 billion.

SOURCE: Heavy Reading

CONTACT: Dave Williams, Sales Director, +1-858-485-8870,
dave.williams@heavyreading.com, or Press, analyst contact, Dennis Mendyk,
Managing Director, +1-201-587-2154, mendyk@heavyreading.com, both of Heavy
Reading