Socializing the mobile address book: market overview and trends

Florent Stroppa 4,758 views
Vote This Post DownVote This Post Up

vote
+14 rating
/ 14 vote

Loading ... Loading ...

[2010 might be the year when the mobile address book will become social. Guest blogger Florent Stroppa analyses the market of social address book services, the main actors and the trends.]

addressbookFor years, mobile network operators have invested billions of dollars in networks, subsidized phones and targeted marketing campaigns. Yet they have neglected one of the most used applications on the mobile phone: the address book.

Recent events such as the launch of the INQ1 phone by 3, the acquisition of Zyb by Vodafone and the acquisition Cellity by Nokia, seem to prove that operators are finally beginning to appreciate the importance of the address book.  The boring address book is about to be rebooted with social address book services.

So, what is a social address book service and why are contacts so important? Who are the market players and why is this all happening now?

Behind the social address book
Network-based address book services are not really new. Back in 2004, Orange UK launched a network address book with Voxmobili allowing mobile synchronization of contacts and calendar events with a Web-based service. While initially a niche market, those services are now widely deployed and most of the Tier-1 operators provide a mobile synchronization or backup service. Those solutions are usually based on the OMA DS SyncML protocol and are integrated within the mobile operator infrastructure.

social addressbook

A social address book (SAB) is an online service which allows end-users to save their mobile contacts, synchronize them and link them up with their social network profiles. The contacts are no longer static, as they display presence, location and status updates. A social address book is usually coupled with a new mobile address book application, a type of ‘phonebook 2.0‘ which similarly transforms static contacts into a Skype-like buddy list. The company I worked for, Voxmobili (recently acquired by OnMobile), developed last year a product called (simply) Phonebook 2.0, and which happens to be one of the Google ADC 1 finalists.

Why is the mobile address book so important?
Along with the other core applications like the idle screen, the dialer, the call logs or the inbox, the mobile address book is one of the most frequently used applications on the phone. The address book is:

  • The central enabler of voice and messaging. In a previous article, The Mechanics behind the Mobile User Interface, Andreas Constantinou clearly presented the place of the address book in user’s journey, where most calls are initiated from the address book.
  • The ultimate retention tool. The mobile address book is the most precious vault of people’s life-long connections and relationships. While it is relatively easy to build an internet address book from email messages, it is much more difficult to retrieve a mobile address book in case of phone loss. The social address book service ensures that contact information follows the mobile subscribers, not the SIM cards or handsets. T-Mobile US with the MyFaves and Contacts service has executed this strategy amazingly well.
  • At the heart of customer relationship. New mobile players such as Apple and Google are taking a piece of customer relationship from the operators. By integrating Facebook, Linkedin, GTalk and MSN into the address book, the operators have the opportunity to be back at the center of customer’s attention.

Who are involved in this new market?
The social address book landscape is one of the most fascinating in the industry as all the major players seem to be involved: mobile operators, handset manufacturers, internet giants, white-label solution providers and Silicon Valley start-ups:

  • Mobile operators: 3 was the first operator to launch a phonebook 2.0 application with the INQ 1 phone. They will not remain alone very long. A video leaked on Techcrunch UK about a service called People that Vodafone is about to launch.
  • Internet giants: Google and Microsoft have also launched synchronization services with Google Sync and MyPhone. Those services started from their webmail services, they introduced a while ago presence and lately synchronization of those contacts. Google also added location with Google Latitude and launched (quite silently) Google Profile. As usual, Google is launching services which are not initially completely integrated but we can already see where they are going.
  • Internet service provider: Comcast acquired Plaxo last year. They are now putting a social address book in the center of their online services.
  • Handset manufacturers: Apple has developed its own MobileMe service. Some rumors talk about a possible social networking app within iTunes. In turn, Nokia launched OVI Contacts and acquired cellity. They are also launching a quite impressive Maemo-based phone, the N900, with Lifecasting. HTC has launched a phonebook 2.0 integrated to the Hero, while Palm provides the Synergy service which links all contacts in a single view on its Pre device.
  • B2C start-ups: Many start-ups like Skydeck are in this space. We can find mature ones like Plaxo and smaller ones like ZYB and cellity. Most of them have already been acquired. Given the big players involved, I doubt there will manage to grow significantly their user base if they remain independent.
  • White-label network address book providers [updated]: Here we can find Colibria, Critical Path , Funambol , FusionOne and OnMobile . FusionOne powers the Verizon service, Funambol provides the Earthlink and AOL solutions while OnMobile is behind the Orange , Telstra , T-Mobile and Turkcell services.

Apart from those actors, the mobile industry has started several new standards initiatives. The OMA is working on the CAB (Converged Address Book) specification and the GSMA has released the RCS (Rich Communication Suite) specification. RCS is now a live commercial service in South Korea with KT, LG Telecom and SK Telecom providing an interoperable service.

Why is this happening now?
The success of Facebook and Skype has shown that people-centric services are highly in demand by end-users. The idea of transforming a static list of phone numbers into a convenient view of relationships has become natural.

Technology is another important factor. The synchronization protocols (SyncML or Exchange Active Sync) are mature and widely deployed while mobile platforms are much more open. For instance, on Android, all applications are created equal which means that any developer can create their own flavor of address book. The Internet platform is also more open than ever: social networking sites, Webmail and even Skype provide rich API allowing an easy integration.

Who will own the address book?
There is no simple answer. There will be competitions and “coopetitions” between operators, handset manufacturers, social networking sites and webmail providers to control it. Some handset manufacturers and small operators won’t even try to enter this game, while some others will play an important role.
I believe that in the long run, this service will benefit the end-users. They will still own their data, they will enjoy a much simpler communication experience, they will never lose their life-long connections and they will be able to use their contacts across multiple devices and multiple applications.

Looking forward to your comments.

- Florent

[Florent Stroppa is Product Director at OnMobile, the largest mobile VAS provider in India. He previously worked as Director of Product Management at Voxmobili, a Paris-based company specialized in social address books and synchronization solutions for mobile operators.]

06Sep2009
Ian

Florent,

Thanks for the overview has been a time since I took a detailed look at the Address Book sector.

Going back in time we had Wildfire from Orange which was killed off despite being loved by the users. What makes you think that today the Mobile Networks have the systems in place to make a new social network based address book work?

Looking at the early days of what is now ShoZu, the founders of Cognima saw the use of replication rather than synchronization as the way forward when it came to keeping data on the handset up to date on all machines. The Company never quite managed to launch the service or get the consumer to pay. What has changed now?

Finally in the fixed world the likes of services such as Plaxo don’t seem to have been able to get most of the users to pay for the service. Thus when such a service moves to mobile will it be paid for by the networks and or handset vendors as something that helps with retention?

 
07Sep
Håkan Jonsson

Florent,

What do you think of the legal problems often associated with with fetching / replicating social network data?

 
07Sep
Florent Stroppa

Håkan,

I think that legal concerns have to be handled with great care. If you see the terms and conditions of Facebook, (http://wiki.developers.facebook.com/index.php/Storable_Information ) it clearly states that data coming from Facebook have to be stored for a maximum duration of 24 hours. This is required to ensure privacy.
For instance, if a user writes a status and regrets it the following day, he must be able to delete it and leave no trace. When it is deleted, the other linked users on Facebook no longer have access to the content of this status. This has to work both on Facebook and all the other applications getting the data from it like a Social Address Book service.
This is why I believe that Social Address book services have to be based on a type of server to server synchronization. The data retrieved from a social network must be synchronized and not just fetched and replicated to ensure that what has been deleted and not available anymore on the social network is also deleted from the service using it.

 
07Sep
Florent Stroppa

Ian,

Thanks for your feedback.
I think that the mobile network operators have the systems in place now because they have the opportunity to change the mobile address book (with Android for instance).
T-Mobile US has proven with MyFaves that an operator could deploy a successful end-to-end service (mobile and Web) with a mobile-centric approach. The service is accessible from the Home Screen.
To be successful the social address book needs to start from the mobile address book or from the Home screen.
This was really hard to achieve a few years ago.

Your second question which refers to the business case is also interesting. I believe that nothing has changed in this area. It is still hard to get the consumers to pay for this kind of service.
Why should they pay while Gmail, Facebook and Twitter are free? Even LinkedIn is free! This service is about increasing stickiness and improving customer satisfaction and loyalty.
It improves their brands which is very important for mobile operators. A nice side effect is also the increase of data and voice traffic.

 
07Sep
Thomas Vilarinho

Hei Florent, nice post!
I’ve browsed quickly to some of the providers/websites providing a phonebook 2.0, but I haven’t found one that seemed to be already offering a phonebook as linked as I expected. Some still seem to rely on you adding the data to their website instead of retrieving or crawling from data that you have already uploaded in other social networking websites.

I’ve seen mainly the possibility of getting the contacts from your email account. Although thats a good place to retrieve you contact’s e-mail or even IM alias, I believe (based on my experience) facebook and skype would be the best places to retrieve mobile numbers, and I haven’t seen an application that can do that (maybe due to data retrieval restrictions). Is there any?

Status and location updates are very hyped now, and they seem to be integrated in a few applications (phonebook 2.0 and not phonebook ones), but still I think the phone number is the biggest catch.

 
08Sep
Antony

Thanks – great overview. I keep hearing snippets of this story, so it’s really useful to have it written up so coherently.

I don’t really buy the “stickiness” angle though and would be interested in your thoughts.

I can only see the mobile address book having a significant impact on churn if it is difficult to move your address book from one operator to another. But I really can’t see large-scale adoption of such a service unless it is easy to get your data out of the operator’s service in a reasonably standard format.

It could increase “stickiness” with a general free online service portal; but personally I can’t see any network operators winning in this game. The more established internet services companies like Google, YaHoo, MS, and random start-ups will always beat them at this game IMO — just like they have in every single other internet service so far.

Am I missing something?

 
08Sep
Florent Stroppa

Hei Thomas,
Thanks for your comment.
To find examples of well connected phonebook 2.0 application, you can take at look at what HTC has done with the Hero or what Palm has done with Synergy.

I agree with you that status and location are very hyped right now and this is the main focus of the phonebook 2.0 type of apps. The main use cases of linking contacts with Facebook is currently the retrieval of friend’s picture, status and location.

Retrieving the phone numbers is indeed really interesting. The public API do not allow this functionality yet but the social networking APIs are quickly evolving. I believe this is just a matter of time. It should be soon allowed as long as the third party respects the terms and conditions and privacy.

 
08Sep
Thedailyreviewer

Hi!

Congratulations! Your readers have submitted and voted for your blog at The Daily Reviewer. We compiled an exclusive list of the Top 100 mobile Blogs, and we are glad to let you know that your blog was included! You can see it at http://thedailyreviewer.com/top/mobile/2

You can claim your Top 100 Blogs Award here : http://thedailyreviewer.com/pages/badges/mobile

P.S. This is a one-time notice to let you know your blog was included in one of our Top 100 Blog categories. You might get notices if you are listed in two or more categories.

P.P.S. If for some reason you want your blog removed from our list, just send an email to angelina@thedailyreviewer.com with the subject line “REMOVE” and the link to your blog in the body of the message.

Cheers!

Angelina Mizaki
Selection Committee President
The Daily Reviewer
http://thedailyreviewer.com

 
14Sep