Push-To-Talk To Hit Australia in 2Q2004, Says IDC
Announcement posted by IDC 24 Feb 2004
Cellular-based push-to-talk (PTT), a walkie-talkie-like mobile service, is set to hit the Australian market this year. Encouraged by PTT success overseas, major Australian wireless operators, including Telstra and Optus, are expected to unveil a PTT service in 2004. Telstra is reportedly trialing the technology on both the CDMA and GSM networks, with at least one service expected to be launched by as early as mid-2004. Optus, meanwhile, is believed to be trialing PTT on its GSM network with Nokia.
"As the battle for high-value mobile services intensifies, PTT appears to be a refreshing oasis that promises to invigorate the voice portfolio of Australian wireless carriers," says Warren Chaisatien, IDC Australia's senior analyst for mobile and wireless solutions. The technology, requiring only a minimal upgrade to existing 2.5G networks, could well be the long sought-after "killer app" helping mobile operators stem the relentless ARPU slide and combat churn.
The fact that PTT is a packetised voice application and thus complimentary to other IP-based solutions also plays well with Australian service providers' strategies. Mr. Chaisatien adds that PTT development will also likely impact the unfolding of the local 3G market as a PTT success would rejuvenate mobile voice revenue and extend the longevity of existing 2.5G networks.
IDC believes PTT should be offered as an add-on service to regular cellular plans. In addition, it should be offered on an unlimited basis, with attractive handset migration programs. The pricing of PTT service will be extremely critical as it will not only influence adoption but will also have an impact on the potential cannibalisation of SMS, which has largely driven the Australian wireless data market in recent years. A broad line up of PTT-capable devices, quality of service and interoperability among carriers will also be critical to the success of PTT in this country.
This finding is from a new IDC study titled "When Push Comes To Talk: Overseas Push-To-Talk Market Experience for Australia," which examines overseas market experience as the technology looms on the Australian horizon. It reviews the PTT offerings of three U.S. carriers and offers a future outlook and essential guidance for the Australian market.
"As the battle for high-value mobile services intensifies, PTT appears to be a refreshing oasis that promises to invigorate the voice portfolio of Australian wireless carriers," says Warren Chaisatien, IDC Australia's senior analyst for mobile and wireless solutions. The technology, requiring only a minimal upgrade to existing 2.5G networks, could well be the long sought-after "killer app" helping mobile operators stem the relentless ARPU slide and combat churn.
The fact that PTT is a packetised voice application and thus complimentary to other IP-based solutions also plays well with Australian service providers' strategies. Mr. Chaisatien adds that PTT development will also likely impact the unfolding of the local 3G market as a PTT success would rejuvenate mobile voice revenue and extend the longevity of existing 2.5G networks.
IDC believes PTT should be offered as an add-on service to regular cellular plans. In addition, it should be offered on an unlimited basis, with attractive handset migration programs. The pricing of PTT service will be extremely critical as it will not only influence adoption but will also have an impact on the potential cannibalisation of SMS, which has largely driven the Australian wireless data market in recent years. A broad line up of PTT-capable devices, quality of service and interoperability among carriers will also be critical to the success of PTT in this country.
This finding is from a new IDC study titled "When Push Comes To Talk: Overseas Push-To-Talk Market Experience for Australia," which examines overseas market experience as the technology looms on the Australian horizon. It reviews the PTT offerings of three U.S. carriers and offers a future outlook and essential guidance for the Australian market.