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Is Text Messaging Terminal ?

by Paul Ruppert

Is multimodal messaging the death of mobile text messaging? Will voice or other modality substituted messaging eventually depose text based mobile messaging? I’ve tripped over a pile of tangled impressions that got me thinking about this.

In talking to entrepreneurs, venture capitalists and some research pundits over the summer, I repeatedly ran into boosters of “multimodal messaging,” and “Unified Communications.” It was reminiscent of the old notion of “Universal Messaging” which I examined as a fledging product development director back in 1998–before the turn of the century (ouch). “Universal Messaging” then was an Internet-based service that gathered messages from all media (email, voice mail, faxes) in one place and converted them into digital files, accessible via the web and potentially via mobile. I’m sure you’re using it every day, right?

Today’s “Unified Communications” incorporates all channels and modalities of contacts, as framed by the ‘flexible’ integration of voice, video, instant messaging or visual text with unified asynchronous messaging (UM), not only converging messaging applications but also interface technology, meaning wired and wireless, voice and touch. Blending multiple acces channels supposedly providing new avenues of interactions to mobile users. An “uber-converging integrator” of visual, voice and touch interaction.

The Buzz

The most immediate commercial opportunity seems to be focused on the potential of “Voice SMS” or messaging via a voice interface. Instead of passing “notes” you would be passing “voice snacks.”

The boost surrounding companies like Bubble Motion, , Kirusa, , IMIMobile, Bharti Telesoft, HeyAnita, RockeTalk, Springdoo, Evoca, Saynow, and Eyjot with their variants of “Voice SMS” offerings is clearly building. The premise they offer seems to be quite seductive to the Sand Hill Road set, with both Kirusa and Bubble Motion recently receiving significant funding rounds from India based Helion and Nexus for Kirusa and Bubble Motion scorring with Palo Alto based Sequoia. The focused religious pursuit of the “next big thing” out of the valley would make a casual observer believe that the obituary for text messaging modality has already been written by the availability of voice mode messaging which these companies offer, usually in the context that “SMS is not all that it can be.” SMS est mort, n’est pas?

The future of mobile messaging with over 3 trillion text messages annually would logically seem well secured. A well of demand currently from 2.1 billlion users globally is not going to dry up over night. Plus, all the trends are upwards. There is revenue and SMS usage growth in even the most mature country markets such as the UK. Message dense nations with high percentages of young populations, mostly in Asia, continue to come on line to mobile. Even in markets like the US, which lagged in embracing the ease and power of texting and seemingly preferred email and Instant Messaging, text messaging has become an intimate aspect of daily lives, especially for those 15 to 25.

So what’s the hype all about?

First, it isn’t SMS at all but voice IP packets. “Voice SMS” has nothing to do with SMS technology at all. It’s a marketing gimmick–associate with something understood to define a new offering. It is positioning a potentially substitutable solution to the familiar and true service. Second, much of the appeal seems to be from non-market factors such as regulatory interference, e.g., mandatory “hands free” usage while driving which is growing in industrialized countries. Obversely it is a “bottom of the pyramid” opportunity to reach out to potentially illiterate, but new mobile users, who “can’t text.” At this stage, India is paraded into the picture as the poster boy market to validate the service demand of voice being more powerful messaging medium.

What was that you were saying about illiterate Indians?

No one has more than a hand full of operator customers, but the implication presented is that texting is too difficult for semi-literate and illiterate users, especially in India where the service has gotten a toe hold. I find this a great irony since India’s literacy rates are rapidly rising due to its growing economy, so much so that its newspaper readership and the launching of new mastheads are skyrocketing. While most mobile professionals think the print medium is dying in favor of mobile access, in the world’s fastest growing mobile market, the newspaper business is booming. Third, is the appeal of multi-modality messaging. Here the siren song of the next big things converges with the operating mode of fledgling companies and venture backers keen to get in on the ground floor of a “big” opportunity.

These same advocates also look at “voice SMS” as a major service force displacing SMS usage, with some claiming the means to capture 20% of the SMS market within three years, globally. Citing the growth of mobile Push to Talk efforts as major shift in the mobile service environment, as well as the the over the horizon potential of mobile IM as pulling effects. So I’ve set the stage of the appeal of multi-modality messaging.

Later this week in Part 2 of “Is Text Messaging Terminal?” I’ll examine the markets, standards, usage factors, and comparable services defining my conclusion on whether text really is terminal.
STILL MORE AT Is Text Messaging Terminal Part 2 Click here

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15 Comments »

  All Hail The SMS « GigaOM wrote @ August 27th, 2007 at 1:03 am

[...] fact, SMS usage keeps growing even despite the high tariffs imposed by carriers around the world. Paul Ruppert, a veteran of mobile business and now a consultant, notes that every year, 2.1 billion global mobile users send 3 trillion SMS messages. Even in markets like [...]

  Don Hohnstein wrote @ August 27th, 2007 at 9:54 am

Thanks

[...] Om Malik and Andy Abramson (and Paul Ruppert and to some extent Mark Evans) are also discussing text messaging, and specifically the joy of SMS [...]

  John Styers wrote @ August 27th, 2007 at 12:23 pm

Interesting that in your list of players in this market, you did not include Core Mobility, the driving force behind the first, Tier 1 launch of Voice SMS in the US, if not broader! Core and Sprint deserve a bit of bragging rights as Sprint launched this service well over a year and a half ago, which means development/integration began 2-3years ago…long before any of the aforemention, “new entrants” were thinking Voice SMS.

The Sprint service has a fully integrated client that offers all of the Messaging management services of Text. It also provides a platform for numerous audio based based alerts, podcasts, and services….far more than just a “text messaging alternative”.

As far as I know, they even coined the phrase Voice SMS. The reason for the nomenclature was more from a position of marketing the pricing than the technology. At Sprint, a Voice SMS is charged from your bundle of SMS Text Messages to maintain pricing simplicity, and as most active users were on an unlimited data plan, there were no incremental data fees for the masses. Remember that we market Products, not Platforms….the consumer should be completely indifferent as to whether the message is sent over SS7, IP, or a trained pigeon…the product is SMS Text Messaging or Voice SMS…not IP, MMS, SS7, etc.

Another key use case for the product is the older demographic that have no interest in learning about T9 or triple tapping. This provides a whole new means of communicating across the generation gap in a quick, intimate, non-intrucive manner.

With the knowledge of the many benefits of both PRODUCTS, there are numerous use cases for both platforms to support both products for the foreseeable future.

[...] messaging with over 3 trillion text messages annually would logically seem well secured,” he wrote in a post to Mobile Messaging 2.0. “A well of demand currently from 2.1 billlion users globally is not going to dry up over [...]

  Robert J. Gueth wrote @ August 27th, 2007 at 3:31 pm

I agree with John: It is not ‘Voice SMS instead of Text SMS’, but rather Voice SMS and Text SMS or Voice SMS with Text SMS. As he suggests, imagine all of those who prefer not to type on their handset…texting with your mouth is a great way of accomplishing the same goal.

Also, reading a text and replying with voice is a much safer (although still hazardous) way to message while driving. This is truly an example of a multi-modal use case.

Thirdly, not all Voice SMS solutions are created equally. Some require the receiver to READ a Text SMS in order to retrieve a Voice SMS and reply…hardly a solution to illiteracy.

Voice SMS should continue to grow in usage as more and more consumers learn the non-obtrusive paradigm of Text SMS and desire a complementary way to send/receive with voice. For this to occur, Voice SMS must continue to be simple-to-use for sender and receiver alike, just as its Text SMS predecessor.

  Sampark wrote @ August 27th, 2007 at 8:22 pm

“… which means development/integration began 2-3years ago…long before any of the aforemention, “new entrants” were thinking Voice SMS” - these are no ‘new entrants’, they have been around for many years but just got funded by major VCs recently.

“As far as I know, they even coined the phrase Voice SMS.” - VoiceSMS term has been in existence for atleast last 8-9 years, there has been prior attempts from companies out of Korea and even US, what has changed since then is the presentation of it - which by the way is lot more attractive in its’ recent incarnation.

  Shalini M wrote @ August 28th, 2007 at 6:23 pm

You are so right to point out that this “illiterate Indian” bit is getting out of hand. You are right that literacy is on the rise. The problem with people who are labelling Indians illiterate is that they fail to see that it is an input method or keyboard problem. There are no easy keyboards for Indian languages. The inscript keyboard is clumsy - they don’t sell it on the market either. The transliteration keyboards only work for those who know English - about 5% of India! Only a keyboard like Kalibonca’s Brahmi input method (www.kalibonca.com) for Indian languages will make this so-called illiterate Indian problem go away. The first phone company that offers this intuitive input method to Indians will dominate the Indian market and offer literate Indians an opportunity to easily text and compute in their languages.

  211(me) Hot Mobile - Thx 4 Txt: 3 Trillion Times wrote @ August 29th, 2007 at 8:27 am

[...] Paul Ruppert, Mobile Messaging 2.0, Is Text Messaging Terminal? [...]

  Paul Ruppert wrote @ August 29th, 2007 at 10:48 am

Thanks for all your comments and the time taken to make your additions. I’m pleased to have sparked a good dialogue.

  Romain wrote @ August 29th, 2007 at 2:01 pm

Thanks for the interesting post.
3 trillion text messages annually sounds both impressive and reasonable.
I would love to get the source of that information.
Thanks.
Romain

  Is Texting Terminal: Part 2 | Mobile Messaging 2.0 wrote @ September 1st, 2007 at 7:15 pm

[...] RELATED POSTS -Is Text Messaging Terminal ?-Is iPhone a texting clunker?-Are We Ready for a Ban on DWT?-Why [...]

[...] month we had a great two-part post “Is Text Messaging Terminal?” (part 1; part 2). I would like to thank Paul Ruppert on his market view points on how innovative services [...]

[...] clouds over the horizon “Is texting terminal?” Not hardly. In reality we are at an adolescent stage for text based messaging. Only a dozen years [...]

[...] is that the message accessing is obviously going to change. As I’ve argued before, “Is Text Messaging Terminal” and “Future of Mobile Messaging“, SMS will remain the enabling platform but [...]

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