What is instant messaging?

People have been using instant messaging services from the likes of AOL and MSN allowing people to send instant text messages to each other; this can be a one-to-one message, or a one-to-many interaction. These messages are sent in real-time and it can be argued that sms is an instant messaging service as well, but it takes a little time to key in the data. These services have been very successful and have grown very quickly, however the revenue models of instant messaging are unclear. Instant messages can be enhanced with the addition of audio, video or stills, much like e-mails and applies to any Internet enabled device. PC instant messaging has tended to be used because it is cheap, people can chat to each other over huge distances and to a number of people at the same time. Paying for such services is unlikely to take-off, since there are other ways of communicating such as e-mail. Instant messaging is not a killer application since it is difficult to differentiate it from other messaging applications in terms of differentiation and revenue generating possibilities, for some user groups and as such it will be a ‘mini-killer’ application.

 

Adding value to instant messaging

There is talk of location based tools and instant messaging being pushed together to form new services. Users could set up a search on their mobile phone to tell them when they are in the vicinity of a shop selling the CD they want at the price they want. However, this same person could equally easy purchase the same CD by using a PC or the very same mobile phone. So will the user pay for the service? No, probably not. Couldn’t this also be done by sms? Yes, the device does not need to be always on. Location based services could also be used to provide users with instant messages telling them that they are near a restaurant they like, a film they want to see etc. So what? We normally know where we are going and have a plan of action and do not need a message to tell us otherwise. In deed, anyone signing up to an instant messaging service could potentially come under a messaging siege, much like e-mails. Users could use filters to remove unwanted messages or to only allow certain messages to get through to them, depending upon their state, whether they are at work, on holiday, shopping etc. But where will all the messages go? How will users be able to manage their messages? Unified communications will need to be a part of the messaging environment and in turn instant messaging a part of this. We must note that many people would probably forget to update their profiles, moving between states etc and an instant messaging service could simply annoy us, no matter how targeted.

 

Does instant messaging pay?

Can you make money from instant messaging? Is it just always on connected text messaging? In order to succeed instant messaging needs to be low cost to be attractive to any user. For many people e-mail and sms will be sufficient. The telecoms industry cannot go through the same experience as WAP and tell us that instant messaging is the next big thing because at present the revenue models are simply not there, the applications and services are just not compelling enough or they have simply not been developed yet. In order for instant messaging to become a killer application it needs to evolve and provide users with something that they desire and subscribe to. Any information that is pushed at us needs to provide us with value, otherwise we will turn it off. As a great deal of information is freely available and almost in real-time, it is not likely we will pay for it. The only way instant messaging can really generate substantial revenues is to limit the access to information. For example, if the Financial Times decided that it needs to start charging for its on-line news service then instant messaging could become a part of this, providing users with instant access, say 15 minutes ahead of the website.

 

How can we bring value to instant messaging?

An instant messaging service will only be valuable if a small volume of messages is sent and is of a high value, otherwise users will be swamped and will become disinterested. When we sign up to an sms service, such as football goals and results of our favourite team, then we are onto a winner. When a service provider needs to disseminate between all the information we would like to know, this becomes particularly difficult. Instant messaging services need to be tailored to our needs and the following points should enable service providers to help select a service suitable to end-user requirements:

What information does the user value? Is it stock prices, information on a company, or a football team? - Need to ask pertinent questions in order to find out about user needs, likes and dislikes. Once you know this you will be able to cost services, the more they are needed the more they should cost.

How the user accesses instant messaging? Will the user like to receive a text-based message on a PC or a mobile device or via a phone call? Will you be able to deliver instant messaging to all user access points? How will users be able to determine how they receive messages? Some form of unified communications and intelligent networking are required.

How will the user change preferences? Can the user use a mobile device, PC or fixed phone to change their preferences? You need to provide flexibility here. A user may not always be able to get to a PC or connect to a mobile phone cell. If instant messaging is to be instantaneous then so should the ability to change preferences, anywhere, anytime & anyhow.

How will you understand the 'state' of the user? When are they in a meeting, at work, on holiday etc? How do you know when to change the delivery of the instant messaging service? What mechanisms need to be used? The user needs to easily change preferences, easy in an always-on environment but people forget (could you please turn your mobile phone off in the cinema/theatre etc.). The service should also be able to monitor changes in user behaviour, maybe they always have a meeting at 10.30 am Tuesday morning. Some form of intelligence and unified communications must be introduced.

 

What is the spanner in the works?

In spite of the problems in the developing tailored instant messaging services there are other problems that need to be overcome in order to unleash the power of this application and that is compatibility and standards. Interoperability between services is still an issue; AOL and MSN instant messaging do not talk to each other. Adding other players adds further problems, and users will find it a nuisance to contact people using different services, akin to the problem of sms in the US market. However, moves are afoot to alleviate this problem with the likes of the “wireless village” initiative founded by Ericsson, Motorola and Nokia. This organisation is supported by the IEEE standards and proposes the introduction of a single interoperable standard for mobile devices. Any device supporting the xml-based protocol would be able to interact with a compliant instant messaging server. Compliant servers would also be able to contact each other. What does this mean for other messaging solutions using PCs and fixed phones?

Service providers and enablers (mobile device manufacturers etc) need to decide on the role of instantaneous messaging solutions and the role they play in the messaging environment. We have not fully exploited the role of sms and yet we are moving swiftly to a new messaging service. We first need to understand how to fully utilise the messaging solutions of today before we can generate the revenue models of instant messaging services of tomorrow. The market also needs to understand how messaging services will interact. Will they come under the umbrella of unified communications or will they be mutually exclusive? These are questions the market must answer otherwise the message in the bottle will sink to the bottom of the ocean.