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November 10, 2009

Video Telephony for the Mass Market

A couple of weeks ago I spoke at the eComm Europe conference, billed as "What's Next in Telecom, Mobile and Internet Communications."  eComm is a relatively new event, with a refreshingly different format: just a single conference track, where every speaker gets just 15 minutes - and when the gong goes for the end of your slot ... you just have to sit down.  The agenda was extraordinarily wide ranging, jumping dizzyingly from voice over LTE to new business models, from the latest in video codecs to voice-enabling Twitter (why?), and there was a lot of creative thinking on display.
 
Skype was one of the headline sponsors of the event, and their Chief Evangelist, Sten Tamkivi, gave a very interesting talk on the factors that have made Skype successful.  I've always thought of Skype as just another low-cost Internet telephony play, appealing mainly to those who want to make very cheap international calls.  That's certainly a big part of their business.  But one statistic that Tamkivi threw out nearly made me fall off my chair: he said that 33% of all Skype calls use video.

Skype says that video calling serves a different social purpose than voice calling.  They ask the rhetorical question "how long does a typical voice call last with a four year old?" and then point out that a video call with a four year old might last ten times as long.  "Video encourages a form of rich and intimate communication that just isn't possible with voice alone".  The great majority of video calling minutes that Skype is carrying is not substituting for regular voice minutes, it's additional traffic that wouldn't have been generated in a pure voice world.
 
The conventional wisdom about consumer video telephony is that no one really wants it.  There have been plenty of trials over the years, with picture quality steadily getting better as video codecs have improved, but the trials have consistently indicated a very low level of interest in a standard video telephony service.  The main objection seems to be that people don't want to have to make themselves presentable before they pick up the phone.  That's always seemed reasonable to me. 
 
So here's my take on this.  If you give someone a videophone and ask them to use it instead of a regular phone, they are going to assume that they will be on video whenever they call someone else with a videophone.  Sure, they can turn off the camera - but what does this tell the person they are calling?  There's a rat's nest of interpersonal psychology here that just can't be ignored.
 
But if the videophone is a different device with a different service that operates in a parallel universe to your regular phone service, those kinds of issues go away.  You use the regular phone to make a regular phone call, and you use the videophone to make a video call.  There's a different kind of etiquette for each, so the risk of embarrassment is greatly reduced.  We need to think of video telephony as another distinct interpersonal communications channel which has its own specific uses and conventions, just like SMS, IM, email and social networking sites, rather than as an enhancement to voice telephony.
 
It seems that video telephony has finally taken its place as a mainstream consumer service alongside voice telephony.  And it took an Internet applications player, not a telco, to make this happen.

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