Author Archive for John Gallagher

Ex Squeezed Me

John Gallagher
Posted by John Gallagher
on March 12th, 2010 in Market Trends

Now the above headline could easily be a headline from one of Britain’s daily tabloids but it’s also the message I received listening to a mobile phone message recently. While it’s not hard to work out what the person said – it’s just illustrates what bad mobile phone voice quality we tolerate from Operators. So reading the latest headline from ABI Research that ‘ARPUs Continue to fall globally as mobile voice usage nears saturation.’ It seems evident that HD voice is a pretty good solution for these guys. Ex Squeeze me! Hello Haych Dee Voice.

According to ABI, Mobile end-user ARPUs dropped between 6 to 9 percent globally. While in India, the world’s second-largest market in terms of subscribers, saw ARPUs dropping more than 10 percent year-on-year in the same period, as new operators and the introduction of per-second billing put heavy downward pressure on voice revenues. In Europe the ARPU contraction was in the range of -5 to -8%, with Austria seeing a contraction of more than 9%.

I recently received an email from Dan Berninger who organizes the HD Communications summit – which GIPS has sponsored since its inception last year. Good news – having traveled to New York and Paris the event will now be held here in the Silicon Valley on May 12.

Consumer Electronics: Is the TV the Next Two-Way Communication Tool?

John Gallagher
Posted by John Gallagher
on March 5th, 2010 in Market Trends

In recent months LG Electronics, Panasonic and Samsung have announced television sets that allow people to view online content such as videos and photos through an easy-to-use web interface that’s built into the TV. What this also can enable is two way video communications – though the cameras need to be separately purchased from the television.

Earlier this week GIPS held a webinar on the topic ‘Is the Television the next Two-Way Communication Tool?’ If you didn’t have a chance to listen to the webinar, you can always listen to the recorded version. We took polls from the live audience, as what better way to affirm our own research conclusions on the TV as a future two-way communication tool.

We directed 4 polls to the audience and 400 people provided the following results:

HOWTV-GIPS

As TV audiences have fragmented and evolved their tastes, the television has become less central to the home/family experience.  The evolution of the TV as an interactive device has the ability to take back ground lost as a focal point in the home – recapturing the living room perhaps. 98 percent of poll respondents view the TV as becoming an interactive consumer electronic device and perhaps competing with the PC.

GIPS-Benefit

The live webinar audience was a solid mix of broadcast industry professionals, so it was interesting to see their response to this question: Who will benefit most from two-way communication via the TV? There are opportunities for all slices within the broadcast industry but ultimately who will benefit is the user. While we didn’t include the end user in this poll, our assumption was that the TV watcher will ultimately benefit in the long run.

While this next poll would be better directed towards consumers – it was interesting nonetheless to gauge the industry professionals’ opinion.

SmartTV-GIPS

Finally, we asked the broadcast audience when they see the rollout of interactive programming and TVs. Well it’s already happening and as we discussed in the webinar. Oprah, CNN and Sports reporting are just a few of the places this is already happening.  The times are a changing for the broadcast industry and as Charles Darwin said: “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”

WhenTV-GIPS

Headline Grabbing – Journalistic Trash: Apple admits using Child Labour

John Gallagher
Posted by John Gallagher
on March 1st, 2010 in General

Perhaps this has been something simmering under my skin for a number of years – but when I saw this news headline, “Apple admits using child labour” I had a repeat vision of an old peddled story that is indicative of trash reporting at its worst. First off – child labour seems to imply (to me at least) a 7-year-old anemic, malnourished child not the 11 instances Apple reported themselves of 15-year-olds working in a factory manufacturing parts for the iPhone in China.

I’m not here to defend Apple but rather provide a personal alternative view based on personal experience – so yes this is a disclaimer that this is a personal point of view – not one necessarily shared by the Company.

10 years ago I worked in Phnom Penh, Cambodia for a well-respected English newspaper, The Cambodia Daily. One Sunday, a small band of high-profile investigative reporters from the Big Smoke descended upon the little capital of Cambodia hot on the tale of a hard story: Child labour at clothing factories. As a result of the “investigation” both Gap and Nike suspended their activities in the country, which meant they also suspended the wages of thousands of people, with tens of thousands of family members dependent on the best honest wage in town.  Should Nike and GAP have pulled out? No but that’s another story. Thousands of families who relied on the clothing factory wage of $40 per month (nearly four times the wage paid to civil servants at the time) were laid-off. Families who lived on this lifeline were left with scant alternatives – perhaps other factory work but prostitution and begging were also high among those alternatives

The right of journalists and pressure groups to investigate should always be defended whether it’s to verify that strict codes of conduct are followed by large corporations or the factory conditions in developing countries that manufacturer for multinational corporations. However, journalists also have a responsibility to provide the full story – not just headlines aimed to grab attention and point the finger for the sake of readership or a personal career notch on the belt. The incident in Cambodia was a disaster for many families.

So with this latest headline trotted out, I see the danger in repeating the same bad journalistic mistake. The question of why were 15-year-olds working in these factories should be asked and what is going to be done to resolve the issue?  Child labour does happen (and no I’m not condoning child labour) and will continue to happen, sometimes because families need to survive. However, the alternatives can be much worse. To Apple’s credit they published the report that identified the instances of child labour. It’s a good example of corporate responsibility – it’s not perfect but the Company is striving for improvements:

“Apple discovered three facilities that had previously hired 15-year-old workers in countries where the minimum age for employment is 16. Across the three facilities, our auditors found records of 11 workers who had been hired prior to reaching the legal age, although the workers were no longer underage or no longer in active employment at the time of our audit.”

A rising tide lifts all boats and with improved corporate social responsibility from multinational companies, the standards in developing countries can rise.

Ubiquitous as the Telephone: Video calling?

John Gallagher
Posted by John Gallagher
on February 26th, 2010 in Market Trends

It’s not often I see public telephone boxes anymore – they are out there but who uses them? A recent article in the New York Times got me thinking about this archaic piece of equipment. Here in the US, we live in a society where 277 million people subscribe to a mobile phone service.

The ubiquitous home phone is also seeing a decline too. “The decline in the cordless phone market is indicative of a larger story,” says ABI Research practice director Jason Blackwell, “which is that of wireless substitution worldwide. In developed nations a growing number of people are dropping their fixed phone lines altogether in favor of mobile-only services.”

There are a multitude of reasons for this decline: mobile phone usage, cultural, cheaper long-distance calling services, the economy and perhaps relevance. Much like cable television losing out to the Internet, the landline telephone is losing relevance with the introduction of its younger sibling – the sleeker, smarter mobile phone.

However, the television may be set to regain its position in the household and push out its little cousin the telephone.

Only recently at CES did both LG Electronics and Panasonic announce Internet-enabled TV’s and a partnership with Skype. The Television is growing into new and expanded places and could function as both the PC and telephone. The possibilities for content, cable and Telco providers to monetize additional communication services in this way are vast.

Next week – GIPS will be presenting a webinar on the subject, so if you would like to sign up click here.

Mobile World Congress Review

John Gallagher
Posted by John Gallagher
on February 23rd, 2010 in Market Trends

While there are hundreds of reviews of Mobile World Congress in the news and media, I thought it might be interesting to get an exhibitor’s point of view of the event especially as the media tend to get stuck in the headlights of oncoming shiny new mobile devices from the big players in the industry and not the ecosystem that the event represents.

In general the show appeared to have more visitors (50,000) in attendance than in 2009 and as one senior executive that I talked with over lunch said “I’ve got 20 years in the mobile industry and I’m still astounded and confounded at all the companies at this event – many of which I still don’t know what they do.”

GIPS made an announcement the week prior about availability of GIPS VideoEngine on the iPhone platform, which generated a good amount of press coverage but also added to the increased amount of people visiting GIPS at the show.  The visitors (at least to GIPS stand) also appeared to be more senior in attendance and I saw a lot more lists in people’s hand of “companies to visit,”  perhaps a sign that were people were doing their homework this year.

Whereas many industry events offer free tickets, Mobile World Congress charge nearly 600 Euro per ticket and they closely guard who comes in and out of the show – even with a pass each person must show their ID too. In 2009 the mood was downbeat and 2010 it was the complete opposite. Hopefully the optimistic tone is a true reflection of where the industry is heading now and a sign of things to come.

The show for me illustrated that the sum is greater than the parts, so while the likes of Google, HTC, Samsung, Huawei and the BBC (did I mention the Beeb stopped by our stand ; ) grabbed major headlines – this only illustrated the icing layer on the cake and not all the ingredients that go into making this event a good reflection of the mobile telecommunications ecosystem.

Mobile World Congress

John Gallagher
Posted by John Gallagher
on February 12th, 2010 in Uncategorized

We’ve had a busy few weeks here at GIPS. We had our fourth quarter earnings release, we announced our video survey of 1,200 business professionals throughout Asia and North America and we let the Apple application developer community know that our cadre of engineers has enabled the iPhone with video chat and video conferencing capabilities. Additionally GIPS will be exhibiting at Mobile World Congress next week to demonstrate both our HD voice capabilities and importantly video on mobile devices. Video and mobile have been more in demand from our customers in the last year and our business with customers in 2009 reflects this.

Mobile World Congress is the largest show in the industry with upwards of 50,000 people within the mobile communications industry attending. It’s also a place that a lot of business is concluded, new products are launched and where we see what is happening in the market on global and local levels.

While GIPS will be at the conference to learn we’ll also be demonstrating our technological strengths. Innovation comes from many small companies such as GIPS – perhaps technology that will present the industry with the type of innovation that will help drive business during the coming years.

GIPS will be at the show to make a difference and to demonstrate that you can truly see and hear the difference with GIPS. If you’re coming to the show you are more than welcome to stop by our stand in Hall 2. Hope to see you there.

Why HD Voice? “The game-changer for Network Operators”

John Gallagher
Posted by John Gallagher
on January 29th, 2010 in Market Trends, Technology

Earlier this week I listened to a webinar from CommuniGate on HD voice. (In fair disclosure they are a customer.) It was interesting because you had three companies in the chain of HD voice – GIPS, CommuniGate and Deutsche Telekom.

The benefits of HD Voice were discussed and the subject also addressed why network operators should view it as an excellent value added service particularly for the SMB market. While the main focus of VoIP services to date has been cost reduction over quality, HD voice heralds a new generation of high-fidelity voice communication services, which allows business and consumer users to have a more natural and reliable voice communication experience than ever before.

Mobile operators are missing significant revenue opportunities in the SMB market where workers on the “move” need increasingly reliable high-fidelity voice quality to interact freely with other users and automated systems. It is estimated that the worldwide SMB market for VoIP services will reach $10.4 billion by 2014. Most of this revenue potential, however, will be directly dependent on how well integrated and easy to use various media will be, and to what extent it will deliver quality features not previously available to SMBs at accessible price points.

CommuniGate is beating the HD voice drum to get carriers to listen. Their MobileOffice, a Unified Communications hosting platform, enables network operators to deliver high-value, HD Voice enabled communication solutions to Small Businesses. To explain CommuniGate’s offering in more detail they have released a whitepaper that looks at FMC as the bridge of two “HD capable” networks; the mobile and the Broadband IP Network (Internet).

What I especially like about CommuniGate is they don’t just talk HD voice, they act on their beliefs. To make sure everyone “gets” the HD voice message – they’re offering a free trial. So rather than read about HD voice, why don’t you try it out for yourself.

Give me a (HD) Voice

John Gallagher
Posted by John Gallagher
on January 13th, 2010 in Market Trends

There are many things in our daily lives that we come to accept and have given up questioning as to why we tolerate it. From shoddy call centre service from credit card companies (“please press 1”, “please press # to listen to all your options again”, “sorry I didn’t understand that command, please call back goodbye”), short-changed at the below-average lunch place, (yes I still go!), no phone signal in the centre of the City to the daily bus driver who waits to see me running before he takes off for the next stop.

However, it looks like there’s a chance I can get my voice back when I read about Orange announcing it will be the first to offer mobile High Definition (HD) Voice for its customers in the UK – well a trial anyway with full nationwide roll-out due later in 2010

HD Voice offers sound quality that my concert-damaged ears can understand. As a company with offices across the globe and people I have to talk with people across different continents with varying accents, which can often be difficult to understand over the telephone. I accepted it for too long but now that issue is resolved when I’m able to use Nimbuzz, Yahoo or CommuniGate to speak with HD Voice clarity. However, often I’m stuck talking on a mobile with terrible-I’ve always put up with this – sound quality.

News that Orange is stepping ahead with HD Voice should send shudders down their competitor’s spines. There’s very little to differentiate one mobile service to another – they might tell us there is but really? However, HD voice on a mobile telephone that’s a huge differentiator for a device that is designed principally to talk.

As the baby boom generation go gently into retirement and their hearing deteriorates the offer of HD voice will be attractive. As too, will all the younger generation who have endured countless noise exploding concerts, nightclubs and iPod blasting music…HD voice must be and will be heard.

I’m a firm believer that HD Voice will herald a new era for mobile communications and a new standard for the telecoms industry – however, it’s that domino effect  that companies such as Nimbuzz, Yahoo, Google, Skype and CommuniGate that herald change – let’s hope there are some other mobile carriers that will brave an HD world.

So if you want your voice heard come and meet with GIPS next month in Paris at the upcoming HD summit and hear the difference.

Video Chat and Video Conferencing Are Mainstream

John Gallagher
Posted by John Gallagher
on December 18th, 2009 in Market Trends

As a European living in the US, on the left coast in the little hamlet of San Francisco – I had to overcome my prejudice that American television was terrible. When it comes to television the BBC – for the most part – is the standard-bearer worldwide for quality television and news reporting. Though if you watch BBC America you probably wouldn’t think so (BBC America will you please stop flooding the channel with really bad, cheap reality shows?)

However, over the years I’ve come to appreciate that excellent television is produced in the US – it’s just there’s so much more bad television production required to fill the 1,000 or so channels that a person needs to look carefully for the great TV productions.

One thing that has been noticeable over the last year or so is the introduction of video conferencing and video chat on different Television programs– an attempt to honestly reflect today’s social fabric. C-Span, a cable-industry financed, non-profit network for televising sessions of the U.S. Congress and other public affairs event and policy discussions, use Skype to allow viewers to ask questions.  Oprah Winfrey signed a marketing agreement with Skype to connect with some guests on her show. While the quality has been lambasted, it shows that video chat and video conferencing entered the mainstream of consciousness some time ago. Fox News, CNN and others have also joined the group.

However, it was a recent show, Modern Family that really struck the “video chat is mainstream” chord for me.  The sitcom is an American mockumentary comedy show about three generations of one family that has the uncanny knack of getting it right about family life. A recent episode shows the family gathering around the laptop to wish Grandpa a Merry Christmas via video chat. No doubt many of us will be doing the same thing during the Christmas and holiday period as the video starts to replace the phone.

Author disclaimer: The television programs mentioned in this article are in no way a reflection of the excellent quality of TV programming the author opines about  – well apart from C-Span and Modern Family

It’s a Global, Social, Mobile World

John Gallagher
Posted by John Gallagher
on December 11th, 2009 in Market Trends

This week in the US – AT&T rankled industry reporters, bloggers and their customers. Not only is their customer satisfaction at an all time low – but now the company announced it will “incentivize” customers to use less data. If the statement is taken out of the spinner I think one can safely read: AT&T will punish customers who use too much data – Apparently about 3 percent of their smartphone customers are using 40 percent of data traffic. However, no model has been proposed so it’s ambiguous as to whether moderate users will also get hit badly by a tiered-pricing model. ..

Even with mobile tempers flaring here – I received a report from Frost & Sullivan that indicates mobile phone subscribers will continue to grow and actually cross the 50 percent barrier globally sometime in 2013.

It’s an extremely significant barrier especially when one considers that mobile phone adoption began in the 1980s and nearly seven billion people will populate the planet by 2014. So, 3.5 billion people will be using mobile phones to talk, text, tweet, IM, pay, play, socialize, film, record, video chat even watch TV

I wonder if landlines, which have been in existence since the end of the 19th century, ever passed the 50 percent mark globally (answers on a postcard if you know the answer) when you consider large parts of the world such as Africa and Asia that traditionally had very few landlines?

While telephone quality has changed little over the last century – the opportunities for dramatic improvement in voice quality with HD voice is something to get mobilized about.