July 2009

Are you frustrated by the ubiquitous “phone tree” at major corporations?  “Press 1 for customer service, 2 for sales, 3 for…” was bad enough. But with the advent of the mechanical voice, it’s only gotten worse as customers are now supposed to guess the magic words that will make “Emily” open up. 

Fonolo solves that problem through “deep dialing”.  Visit their web site, select the business you want to speak with and the department, and Fonolo will dial the call, navigate the menus and connect you directly with the person you need.   CEO Shai Berger and I talked a couple of weeks ago about their latest release.  It’s a complete redesign of the service, with new features and (gasp)  a business model. 

The user interface has been completely redesigned, beginning with the ability to deep dial without creating an account.  Berger explained that demanding that users create an account had turned out to be a huge barrier.  Now you simply visit Fonolo, search, and then click to dial.  It’s Google for corporate phone trees.  According to Berger, call volumes have been rapidly increasing as a result of this change.

Also in this second release, the Quick Tones feature is an Auto-Fill for the phone user interface.  Just as modern browsers can automatically populate passwords and other fields on web forms, Fonolo’s Quick Tones feature can use DTMF tones to automatically enter ID numbers, credit card information, and other kinds of information commonly requested over the phone.

Fonolo now sports a smarter interface for making call recordings and takeing notes about the calls as well.  In particular, users can add notes and flag points during the call, so that they can return to specific places in the recording at a later time.  During large recordings, this kind of indexing capability is invaluable.

So how does the company plan to make money?  It’s not by charging for the end user service.  According to Berger, this service will be free indefinitely.  They see an opportunity in improving the calling experience to large companies.  Furthermore, it’s a lot easier to get their technology in front of people if it’s on the site that the user is navigating to, rather than a third party site such as Fonolo’s.  Ergo, Fonolo has built a web component that is a miniature version of their existing service, which corporations can deploy on their own websites.  It automatically synchronizes with the company’s existing phone menu, stays synchronized, and enables deep dialing instantly from their website. 

The benefit?  Happy customers, and lower costs because the customer connects to the right agent immediately.  The business model is usage based.  In theory, because customers are on the line and in the queue for shorter periods of time, corporations should save substantial money paying Fonolo rather than the local telco.

Berger believes this is disruptive because the technology can be deployed, immediately, without requiring any changes to the existing telecom equipment in an organization.  Companies add the Fonolo widget to their website, and periodically Fonolo spiders the phone tree, leading immediately to lower costs and happier customers.

One area that’s lacking in their current offering is mobile.  Except for a third party product on Android operating systems, Fonolo has no mobile offering.  Fonolo recognizes that mobile might well be the most attractive application of all, and Berger assured me that “it’s on the roadmap”.

Next time you need to navigate the large phone tree of some anonymous MegaCorp, perhaps a visit to Fonolo.com might be the best place to start.  I know I’ll certainly be doing that.

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Apple is taking a lot of heat for rejecting Google Voice from the iPhone application store.  The move is widely seen as anti-competitive, and by most commentators as further evidence of Apple’s servitude to AT&T.

But so far, nobody really knows.  Apple isn’t talking, and AT&T would only say “You need to speak with Apple for anything involving its apps store”, attempting to distance itself from the controversy.

What if there’s more to it than the surface suggests?  Here are two of the more popular conspiracy theories out there and why they don’t really make sense.

Follow the money. It’s no secret that Apple gets a share of revenues from it’s carrier partners.  And yes, Google Voice would allow free calls – except for the nasty detail of air time.  In fact, since most plans include a bundle of local and long distance minutes, Apple shouldn’t see a dip in revenues at all from Google Voice.  Nor, for that matter, should the carrier. Smart carriers should want to partner with Google Voice for terminations, rather than lock them out.  They can actually earn more money this way by bundling long distance minutes into the airtime charges, and then charging again for consumers who choose to terminate their calls through Google Voice.

Nope.  Apple’s decision is not about the money.

Follow the lock. This theory says that carriers are worried about Google Voice because local number portability is such a hassle.  That’s right!  Once your contract is up, Google Voice would make it that much easier to dump AT&T in favour of say, Sprint.  Proponents of this viewpoint think that carriers still value the lock-in associated with owning your number.  The problem is that number portability just isn’t that much of a hassle, and if the carriers try to make it hassle… well, you can bet some consumer-oriented visibility-seeking politician will step right in to help solve that one.

So Apple’s decision is not really about lock-in either.

No, if Apple were really worried about protecting their carrier relationships and revenues from the threat of other voice application on iPhone, then they’d be kicking out Truphone, Fring, Nimbuzz, iSip and countless others.  But they’re not.  Moreover, as Om Malik pointed out, AT&T hasn’t objected to GoogleVoice for BlackBerry yet, so why object to it on iPhone?

Maybe the reason really is “duplicated functionality”. Remember Podcaster?  This application let users download podcasts over the air.  It was rejected by Apple in September 2008 because it “duplicated functionality” also.  But Apple didn’t actually provide the ability to download podcasts over the air.  It wasn’t until a couple of months later that over the air downloads debuted in the OS 2.2 update.  Perhaps Apple themselves are quietly developing features that are competitive to Google Voice? After all, the telephony pieces of iPhone are virtually unchanged since iPhone OS Version 1. And perhaps, as they did with the visual voicemail feature, they will want to deploy these features in conjunction with their carrier partners.

Food for thought.

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Gizmo5 + Google Voice = free phone service

July 28, 2009

Sunday morning the new Gizmo5/Google Voice mashup debuted. Out in beta, it lets you make a phone call, via Wifi/Gizmo5, using your Google Voice account. This new capability is in addition to Google Voice’s existing ability to route an incoming call to your Gizmo5 account. In the US, that means that starting now, if you [...]

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Will the new iPod Touch unleash VoWiFi? I’ll wait and see.

July 23, 2009

The rumours have been flying about the iPod Touch equipped with a camera and microphone built-in.  Yesterday Andy Abramson talked about the potential for this device on WiFi networks as a communication product.  Andy’s thesis is that this new iPod device is the disruption that will unleash Voice on WiFi, and as an early adopter [...]

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Retiring Foo

July 23, 2009

When we moved into our current home, we had the place wired for ethernet.  The state of the art for WiFi at the time was 802.11b – 10 Mb/s, short range.  I had ethernet cabled everywhere, and then used WiFi for devices that were better mobile – laptop computers initially, and later mobile phones, music [...]

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Mike Arrington’s risk calculation

July 15, 2009

Over at TechCrunch Mike Arrington has had a mass of over 310 documents internal to Twitter show up in his inbox.  He’s planning on publishing some, but not all, as the bulk are uninteresting, and perhaps maybe embarrassing to some people, including senior industry folks that Twitter has been trying to recruit. There has been [...]

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Verizon courts developers too late?

July 14, 2009

GigaOm’s Stacey Higginbotham interviewed Verizon’s Ryan Hughes yesterday about the mobile application store that Verizon is building.  Developers will be able to build applications for whatever platform they want from Windows Mobile, Palm, Android and BlackBerry and receive a revenue share for whatever is delivered on the Verizon network.  The carrot? Developers can also tap [...]

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eComm goes to Amsterdam

July 14, 2009

After a couple of successful shows in North America, Lee Dryburgh et al are taking the eComm show to Europe October 28 to 30 in Amsterdam.  This will be the third show under Lee’s wing, and if it’s anything like the first two it will be a thought provoking and worthwhile couple of days.  You [...]

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Government as Entrepreneur.

July 11, 2009

en·tre·pre·neur n.  A person who organizes, operates, and assumes the risk for a business venture. The American Heritage® Dictionary of the English Language, Fourth Edition Blazoned across the front page of the local rag, the Ottawa Citizen, this morning’s headline read Billion-dollar business fund overlooks city tech firms.  It seems the Ontario Government yesterday announced [...]

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Calliflower: new features, payment processors and a better sign-up process

July 10, 2009

We’re going into a summer weekend here pretty satisfied with the last week.  Last night we rolled out some changes to Calliflower that will really help our business.  First, we’ve made it easier than ever for customers to participate in a Calliflower call. Participants (as opposed to organizers) will be able to join the call [...]

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