Mobile Instant Messaging Jag Minhas, London, October 2006

Because conversations matter Talk or text Reply Reply back Subjects People, Events, Situations etc. Pictures, Music, Video etc. Objects Spoken words Typed words

Subjects

People, Events, Situations etc.

Pictures, Music, Video etc.

Objects

Spoken words

Typed words

Conversations are valued Source: O2 Interim half-year results June 2006 – www.o2.com 70% 26% 4% Voice Text Other % of ARPU (O2 UK)

Text trends UK Text volumes Source: MDA (www.text.it)

Pressures on text Time Messages per user per month Operator Interworking ? Seek new accelerators As current “network effect” maxes As customers hit usage limits Price per message declining Shift from absolute price per message to effective rate (monthly “subscription”)

Seek new accelerators

As current “network effect” maxes

As customers hit usage limits

Price per message declining

Shift from absolute price per message to effective rate (monthly “subscription”)

Traditional response Introduce more messaging services: Push to Video Push to Talk MMS Mobile Email Instant Messaging SMS Platform MMS Platform PoC Platform Email Platform IM Platform New user experiences New platforms

Introduce more messaging services:

Increasing complexity in the user experience Multiple technology choices Modal messaging behaviours Limited support for conversations Presence as prerequisite for sending messages Typically fragmented communities and separate contact lists

Increasing complexity in the network To external MMSCs To Internet To external IM providers IP & SS7 Mobile Network Text Voicemail Email MMS IM WAP Gateway MSC MMSC MMSB MMS Platforms SMSC SMSB MAR SMS Platforms VSDs Voicemail IM Presence IM Platforms MTA Email Email Platforms PTx Server PTx Server PTx Platforms

Increasing complexity in the business New messaging service: new pile of boxes new software licences new handset clients Investment case: separated product separated product management separated marketing

New messaging service:

new pile of boxes

new software licences

new handset clients

Investment case:

separated product

separated product management

separated marketing

Marketing modal messaging behaviours “ Share the moment” “ Picture Messaging” “ Snap into action and have some fun”

Consequence: customer behaviour Most customers, most of the time, will use what’s: least hassle best-connected simplest out of the box/pocket already paid for For most customers, that’s: Text

Most customers, most of the time, will use what’s:

least hassle

best-connected

simplest out of the box/pocket

already paid for

For most customers, that’s:

Text

Consequence: business case The business case for new messaging services under-perform. Management time and focus of resources on weak product. Weakened business case Harder to justify further investment in service enhancements and marketing Lack of forecasted uptake of new service Customer defaults to using most effective service

The business case for new messaging services under-perform.

Management time and focus of resources on weak product.

Internet approach Concept Metaphor Reach Richness Sometimes connected Always on Era Feature Enhanced with presence - Spontaneous conversations - Personalised expressions Enriched with multimedia - More engaging conversations - Experience sharing Multimedia support - Richer messages - Container for conveyance Social circle reach - Highly personal Universal reach - Service provider interworking Highly conversational - Threaded user interface - Immediate delivery Highly referential - Inbox accessible anywhere - Large & persistent storage Transient dialogues Inbox in network Internet IM Internet email

Internet IM compared with mobile “text” Always on. At your desk. Mostly on. Always with you. Enhanced with presence - Spontaneous conversations - Personalised expressions Enriched with multimedia - More engaging conversations - Experience sharing Social circle reach - Highly personal Highly conversational - Threaded user interface - Immediate delivery Transient dialogues Internet IM Integrated with contacts list Universal reach - Service provider interworking Highly conversational - Short messages - immediate & offline delivery Inbox on the phone - Highly personal & private Mobile Text

Issues to reconcile in “crossing over” IM to mobile Always on. At your desk. Mostly on. Always with you. Everyone can converse with Text Contacts list contains more than just friends Only subscribed and present friends can converse Only friends with IM can converse Enhanced with presence - Spontaneous conversations - Personalised expressions Enriched with multimedia - More engaging conversations - Experience sharing Social circle reach - Highly personal Highly conversational - Threaded user interface - Immediate delivery Transient dialogues Internet IM Integrated with contacts list Universal reach - Service provider interworking Highly conversational - Short messages - immediate & offline delivery Inbox on the phone - Highly personal & private Mobile Text

Mobile IM Implementation strategy for maximum value Only friends with IM can converse Everyone can converse with Text + = Ensure IM interworks fully and bothways with Text Maximum connectedness out of the box. Just like Text. Contacts list contains more than just friends Only subscribed and present friends can converse + = Permit conversations without presence Add presence as a stimulator of conversations, not a prerequisite. Just like Text, only smarter.

Net result A Mobile IM service that interworks fully and bothways with Text A Mobile IM service that permits conversations without presence A product with the utility and reach of text, but smarter: a more conversational and natural model than text a more natural way of adding richness to conversations

A product with the utility and reach of text, but smarter:

a more conversational and natural model than text

a more natural way of adding richness to conversations

Technical illustration SMSC MMSC IP Messaging Platform Anton Benoit Me : Are you there yet? Benoit : Not yet, Im running a few mins late. Where r u? Me : I’m l8 too. I will prob b another half hour! Benoit : OK – I’ll do some shopping Benoit : Scary! Me : See you shortly Benoit : OK Conversation with Benoit Bothway Interworking IP Messaging Phone SMS/MMS Phone Me : Here is my view! Text Inbox Are you there yet? I’m l8 too. I will prob b another half hour! See you shortly MMS Inbox Here is my view!

Simpler for the customer Simplified customer experience Conversational Non-modal Not complicated by presence Views of a single contacts list Fully-connected with everybody Customer Proposition “ Text just got better” SMS + Text 2.0

Simplified customer experience

Conversational

Non-modal

Not complicated by presence

Views of a single contacts list

Fully-connected with everybody

Customer Proposition

“ Text just got better”

SMS +

Text 2.0

Simpler for the operator Simplified network Converged IP Messaging Platform – no more stovepipes New messaging services are just new use cases Interworking functions ease migration Operator Proposition “ lighter weight” investment cases Product management & marketing aligned to more natural customer behaviours Clearer, more practical roadmap for wind-down of legacy platforms

Simplified network

Converged IP Messaging Platform – no more stovepipes

New messaging services are just new use cases

Interworking functions ease migration

Operator Proposition

“ lighter weight” investment cases

Product management & marketing aligned to more natural customer behaviours

Clearer, more practical roadmap for wind-down of legacy platforms

Migration towards simplified user modes on device Mobile Messaging Be notified of new messages when they arrive Add/view attachments in messages Send messages as if from existing remote mailbox View contents of an existing remote inbox Email Discover - Browse Internet - Browse channels/feeds Create - Take pictures/video - Update blog Consume - Listen to music - Watch TV/video Content Text with added files - File sharing use case Text with added video - Push to Video use case - IP Video use case Text with added voice - Push to Talk use case - Audio sharing use case (VoIP) Text with added pictures - MMS use case Text Only - SMS use case (classic model) - IM use case (dialogues) Mobile Messaging Video Call - Circuit switched - Packet switched Voice Call - Circuit switched - Packet switched Calls

“Rich call” scenario more likely to start with text Traditional industry view of starting point was voice call Text Message Share media Voice/Video Call Collaborate & Play Voice Call Video Call Conference Call Share multi-media Collaborate

Traditional industry view of starting point was voice call

Simplified platform migration due to interworking IP Messaging Platform Interworking IP messaging handsets increasing “ legacy” handsets decreasing … the winding down of the “legacy” platforms becomes possible. SMSC MMSC

Presence; of diminishing value in fixed Internet The larger the list of friends, the more hiding behind “away” occurs. The probe : Everyone starts an IM conversation with “hi” or “are you there” Because it’s more valuable to know your ability to chat than what your presence status is telling me. Expression & emotion seems to be more valuable than presence status: Individuality. Making a statement. Happy, sad, stressed etc. More likely to stimulate conversation.

The larger the list of friends, the more hiding behind “away” occurs.

The probe : Everyone starts an IM conversation with “hi” or “are you there”

Because it’s more valuable to know your ability to chat than what your presence status is telling me.

Expression & emotion seems to be more valuable than presence status:

Individuality. Making a statement. Happy, sad, stressed etc.

More likely to stimulate conversation.

Mine My not-yet-teenage son’s Growing importance of expression

Presence; of lesser relevance in mobile I know you’re always there, or else you’re sleeping . I’m already used to not knowing if your phone is switched off. “Top five” contacts account for the exchange of over half of all calls and messages on a mobile (Nokia research). Contacts list contains more than friends; e.g. pizza, taxi, short-codes etc.

I know you’re always there, or else you’re sleeping .

I’m already used to not knowing if your phone is switched off.

“Top five” contacts account for the exchange of over half of all calls and messages on a mobile (Nokia research).

Contacts list contains more than friends; e.g. pizza, taxi, short-codes etc.

Presence; catastrophic if not implemented carefully Voice and data share the same signalling resources in mobile: Text messaging IM with presence Rapid battery drain caused by more frequent paging Voice calling gets blocked by cells overburdened with paging The “danger” threshold is a function of: Number of IM phones Number of presence-enabled friends Frequency of presence updates Message Data Signals Message Data Signals

Voice and data share the same signalling resources in mobile:

Rapid battery drain caused by more frequent paging

Voice calling gets blocked by cells overburdened with paging

The “danger” threshold is a function of:

Number of IM phones

Number of presence-enabled friends

Frequency of presence updates

Interworking with SMS, MMS and other operators Interworking with MMS is straightforward Interworking with SMS requires a change in network To handle conversion of SMS headed to an IM phone IM platform to IM platform interworking across operator boundaries Interworking with SMS and MMS where interconnect agreements don’t exist

Interworking with MMS is straightforward

Interworking with SMS requires a change in network

To handle conversion of SMS headed to an IM phone

IM platform to IM platform interworking across operator boundaries

Interworking with SMS and MMS where interconnect agreements don’t exist

Mobile IM; device perspective Current approaches: Device manufacturer or third party client Embedded, preinstalled or downloadable Typically Java, Symbian, Windows Mobile etc. Selected in the phone menu Login process, not instant on Strategic approach: Embedded and usefully integrated High-level surfacing of messaging interface Idle screen presentation No login process, always on Messaging experience based on device-resident GUI/app framework E.g Flash/SVG, ECMAscript, Ajax etc . Updatable over the air To keep features refreshed

Current approaches:

Device manufacturer or third party client

Embedded, preinstalled or downloadable

Typically Java, Symbian, Windows Mobile etc.

Selected in the phone menu

Login process, not instant on

Strategic approach:

Embedded and usefully integrated

High-level surfacing of messaging interface

Idle screen presentation

No login process, always on

Messaging experience based on device-resident GUI/app framework

E.g Flash/SVG, ECMAscript, Ajax etc .

Updatable over the air

To keep features refreshed

Conclusion: Message to operators & vendors Avoid fragmentation – ensure mobile community is included Implement interworking with SMS and MMS Decouple presence. Prioritise expression Offer a reason to not just resort to text Simplify the user experience By enhancing the texting experience with the best of Internet IM Use Mobile IM as a basis for future Converged IP Messaging platform Support OMA “CPM” initiative

Avoid fragmentation – ensure mobile community is included

Implement interworking with SMS and MMS

Decouple presence. Prioritise expression

Offer a reason to not just resort to text

Simplify the user experience

By enhancing the texting experience with the best of Internet IM

Use Mobile IM as a basis for future Converged IP Messaging platform

Support OMA “CPM” initiative