Free Long Distance Calls from your Phone

While I’ve got you folks on the voice bandwagon I just have to rave about yet another up-and-comer in the VoIP space: iSkoot.

I had a most pleasant conversation with Mark Jacobstein, CEO of iSkoot, a little while ago (you may recall Mark in relationship to Digital Chocolate. Yes?).

iSkoot’s value prop for the moment is Skype for the mobile phone. Through a downloadable client you can access all of your Skype contacts on your phone, and call or IM with other Skype users whether they’re on a PC or another mobile Skype phone. This is particularly enticing when it comes to making long distance calls.

iSkoot is not really worried about operator hostility out of concern for cannibalization of their Long Distance business. According to Mark the value prop for the operators is that, unlike some of its popular competitors such as JAJAH, iSkoot uses the circuit-switched data network. From the operator’s perspective it also eliminates long distance termination fees due to other operators. At the same time it is a very good way to drive data minutes of use; the argument being that people would rather wait to get home and make a free call on their PC using Skype than pay for a call right when they want to make one.

But the real problem is not with how sensible the arguments are, but with how rational the operators will be about this. For example, I’m currently lobbying operators to open their WAP environment to off-portal content and services. The reality, and operators know this well, is that the same off-portal content and services are already available through SMS. Yet they still refuse to open WAP out of fear of cannibalization. Hmm...

Execution: Despite of any potential roadblocks, iSkoot is already doing extremely well. It has successfully launched its client on a number of devices. Most include Blackberries and other smartphones; some feature phones, such as the extremely popular RAZR, are also supported.

Also iSkoot is has already received tons of good press and awards. Plus one thing I am certain of is that iSkoot has many other things cooking. An open platform to allow anyone to integrate iSkoot into various use of mobile VoIP would definitely get our attention :-).

Guitar Hero Any Time, Any Where!

Since this has become my latest addiction I thought I would post a quick review:

It is a really good app based on an outstanding video game. Hands On Mobile has done a superb job transposing the guitar-based UI to a handset.

• It works just like Guitar Hero, except there are only three keys (instead of five)
• The graphics are also pretty good and true to the game
• The AV synchronization is almost perfect (every once in a while a note will be slightly off, but this is barely noticeable to someone who has worked on mobile video applications before)
• The sound on the Verizon Chocolate is pretty good, especially with stereo head phones

What I didn't find optimal:

• No free-demo available?! That’s kind of sketchy! So in order to try the game I had to pay for the 1st month’s subscription. Talk about a deterrent for some folks out there
• Interesting pricing strategy going on here: only four songs available with the 1st month’s subscription. One can work his way up to fifteen songs total (three at a time). But given how addictive the game is, unless more songs are available soon, there will be little incentive for folks to renew their subscription beyond five months. This makes it better to simply pay the indefinite package upfront
• The biggest drawback is that one can only have two songs residing in the phone at the same time. To switch from resident songs to the other two songs, the full songs must be downloaded. Translation: almost a minute to download each song (too bad one can’t take a Guitar Hero break during)
• And the ever present problem with mobile anything: when I play to “Suck my Kiss” (by the Red Hot Chili Peppers) it feels more like “Suck My Battery” just after a few plays
  

The game is currently sold exclusively on Verizon phones. One can download it through Fun & Games on GetItNow (or the Brew deck for mobile geeks out there familiar with the term). One can pay $4.49 for a month to month subscription, or $11.99 to have indefinitely.

The WAP Fenced Garden

In the U.S. the concept of off-portal premium content and applications provided over WAP is almost nonexistent as most carriers maintain a fairly closed WAP walled garden.

But do off-portal content and application providers sit idle while waiting for the walled garden to come down? No.

When there is a will, and a loophole, there is a way.

Most carriers do allow end users to navigate to sites outside of the carrier-branded portal. The problem is that as end users navigate outside of the walled garden, off- portal sites will not benefit from automatically knowing their identities (i.e. the phone number). In a way this is similar to a Web experience – the only difference is the limited UI of the device. Many content providers thus take advantage of this by continuing to sell their content in a variety of different and creative ways.

One way is through the use of a third party payment method, such as Paypal or credit cards. On Verizon Wireless I can easily navigate to a content provider’s WAP page (the name of the content provider will go unmentioned), select a ring-tone, enter my credit card number, confirm my purchase. The two problems with this are 1) the cumbersome user-experience, and 2) most phones do not allow content downloading over HTTP (in my case, I got charged for the purchase but never received my content).

There are also other ways to marginally improve the end user experience:

Enter Off-Portal SMS. Through Premium Short Messaging Services (PSMS), off-portal content providers have been able to circumvent the WAP walled gardens. PSMS provides a way for content providers to bill consumers via the operator’s phone bill, either directly or through an operator-trusted aggregator.

The user experience might look something like this:

• User navigates to the content provider’s WAP site and selects the service

• User needs to provide the content provider with his/her phone number (manual input)

• To ensure the end user is truly the owner of the phone number an SMS containing an SMS message is sent to the phone number. Since the end user may have to exit the WAP session to receive the text message, the content provider sends a URL in the device (WAP Push). By selecting the URL the end user is taken back to the WAP page where he/she can continue with the transaction (and which serves as a means to authenticate the user)

• The content provider may deliver the content through a WAP download or through SMS, depending on the operator/device limitations

A less desirable user experience is one which is the last alternative for operators/devices that do not support WAP Push:

• User navigates to the content provider’s WAP site and selects the service

• User needs to provide the content provider with his/her phone number

• To ensure the end user is truly the owner of the phone number an SMS containing a PIN is sent to the device

• After the end user receives the PIN he/she may return to the WAP page, assuming the device’s browser is able to cache the page

• The end user enters the PIN

• The purchase is completed

• The content provider may deliver the content through a WAP download or through SMS, depending on the operator/device limitations

The big disadvantage is that the end user experience still leaves much to be desired.

The other disadvantage of PSMS is that the operators takes a cut of each purchase. The cut can range anywhere between 25% to 40%. The irony is that by trying to protect their walled gardens carriers are also keeping dollars outside of their precious garden, and out of content providers’ wallets.