This document discusses the over-the-top (OTT) messaging landscape. It reviews various messaging apps like iMessage, Skype, WhatsApp, and Facebook and how they are embedded in other services. It notes that while early instant messaging in the 1990s-2000s did not kill SMS, the commercial launch and interconnectivity of SMS between carriers in 1995-1998 is what really boosted its adoption. The document also outlines some business models for current OTT apps like advertising, payments, partnerships with tech companies, and integration with other services. It emphasizes that national cross-platform interoperability is crucial for users and that silos between OTT apps pose a challenge.

1. The Over The Top
Messaging Landscape
Issue 1.0
July 2012
www.alanquayle.com/blog
© 2012 Alan Quayle Business and Service Development

2. Outline
• Why didn’t the first phase of free OTT Messaging (Instant
Messaging) in the nineties and naughties kill SMS?
• Reviewing the OTT messaging landscape:
o Apple iMessage, Skype, Whatsapp, Viber, Tango, Voxer, Facebook,
PingMe, Vonage, Tu Me (or is it Me Tu?)….
o In fact messaging is embedded in many applications, web sites and
services, e.g. Words with Friends, Draw Something, xbox live, PS
network, Comcast.com, etc.
• Understanding the business model for the current hyped up OTT
apps beyond “Facebook will buy us for One Billion dollars!”

3. INSTANT
MESSAGING
HISTORY

6. Silos!!!!!!!!!

9. XMPP did find a role in the enterprise: Business Model is Enterprise Pays

11. Don’t Forget A Key Event in SMS History
• The first text message (or 'telenote' as it was originally called) was sent on 3rd
December 1992 by Neil Papworth to colleagues at Vodafone and said 'Merry
Christmas'.
• The commercial launch of SMS took place in 1995
• 1998 - Interconnect between UK Operators O2, Orange,
Vodafone and T-Mobile
• The first recorded monthly text message total was 5.4 million in April 1998
• August 2001 was the first month in which over one billion messages were sent in the
UK
• December 2002 - 1 billion SMS per day were exchanged globally
In 1998 operators did what the free IM services could not, and it just worked!

18. OTT Business
Models
Hope for
Hope customer Value for the Partner with
Advertising
pays something community Telcos
Revenue
Analytics /
Advertising Cute messages /
Xbox live Skype, Whatsapp
(Groupme, Voxer, effects (Tango)
Viber)
Annual Fee
(Whatsapp)
Calls to / from
the PSTN (Skype)

19. Key Points
• National cross-platform interoperability is essential for customers
o No configuration, no funky pricing, no content adaptation problems, it just works
o Can not afford the messy start of MMS
• Transparent interoperability is the most important thing an operator can do for
their customers to remain relevant
• OTT’s love their silos
o Skype is unlikely to allow interop with Viber and Whatsapp, so they can grab their users;
though many of their users also use Viber and Whatsapp.
o OTT’s will continue to focus on giving delightful experiences within their silos
• Messaging is just a feature, we have conversations and relationships
o That’s why Apple and Google (Android) remain the real long term threats
• An operator’s only weapon is cross-carrier interoperability, without it they’re
dead