A new version of the Viber application launched in the Apple App Store late last month. Viber is an over-the-top application similar to Skype, allowing free calls over the mobile data network with anyone else who has Viber installed.
There are of course more applications on the Apple App store that make 'free' calls possible. Skype is the most well known, but you can also use Nimbuzz for example. Viber is really nothing new, so at first glance one can expect that the success of this application is unlikely to vary much from its predecessors.
OTT services are an 'interesting' development to follow closely by operators with existing managed services. Interesting in the sense that they have a negative impact on current revenue flows. Viber is a voice service and competes directly with the managed service 'GSM voice' from mobile operators. When Skype was launched on the App store, it was controversially only available over Wi-Fi connections and operators blocked its use over the 3G network. Today, Skype works also on 3G networks. The Viber application is not new, so it's currently not expected to have an impact on existing services from operators.
The success of these kind of OTT services depends to a great extent on the ease of use of the service and the size of the group installing and using the service. In this sense, Viber has managed to avoid the early problems suffered by Skype. Using Skype used to require you to agree a time to be sitting at the computer - spontaneous use was not possible and it was far from easy to use. The addition of mobility and push notification features has increased the user friendliness, and users are no longer required to sit at the PC. Skype's user-friendliness further increased with the introduction of SkypeOut, SkypeIn (now called Online Number), video calls and clients for various OS, including mobile.
There remains the issue of the size of the user group and how do you know who's using the service. This is where Viber can make a difference. The problem with Skype is there's no simple way to see who's using Skype, or has it installed. You need to actively tell people you're using Skype and exchange addresses or look them up in the directory. Then there's also the waiting for the recipient's permission to contact them.
Viber uses your normal telephone number as a unique identifier, and not a special user name or e-mail address. As a result, the service can easily search your contacts list and check if each number is registered in its database of installed users. (The app does ask for your permission before searching the phone.) Users can then see easily who they can call for 'free'. The app checks regularly, automatically adding new users.
Of course the service is not 100 percent foolproof and there are still occasional problems. At the moment, the app is only available to iPhone users, but the company is working on Android and BlackBerry versions (and free SMS). The Viber user also needs to have an unlimited data subscription. Essentially, Viber is a simple application which, when its teething problems are resolved, is as easy to use as normal calling. And if there's no longer any difference in ease of use or quality, then the price will determine what gets used. The only remaining question is how will Viber make money?
They don't include advertising, the app is free and calls to normal numbers are not possible, so it can't earn a margin on termination. It does cost money to carry the traffic from A to B over an IP backbone and they have servers to manage. The company reportedly has expansion plans for services such as wallpapers, ringtones and LBS, so that must be when they are going to start asking for payment.
