By James Wanless
President & COO of Talkster

There is a paradigm shift happening in communications. The silos of old are crumbling and the way we communicate is forever going to be changed. The changes in communication that are coming is nothing short of revolutionary.

It was roughly a decade ago that people started using email, but now email has become ubiquitous and, for a great many, the primary form of communication. But since mass adoption of email began in the 1990s, a large number of new and different communications technology and habits has emerged. Today we email, text message, Facebook, tweet and still make phone calls but increasingly on VoIP phones running over Wi-Fi networks.

The evolution in communications is clear, but where is this revolution you may ask? Adding more and more little bits of communication on top of old methods is hardly revolutionary.

The revolution I speak of was incited by social networking. When I say social networking, you probably think MySpace and Facebook. These sites with their huge member lists are just the beginning. While social networking habits are engrained in teenagers using MySpace, the lure of social networking is attracting members far younger. Children as young as three are connecting with friends they know and are meeting new friends on social network sites made just for them. Sites like Club Penguin, ToonTown, Webkinz and My Scene are experiencing explosive popularity. Children I know will rush home from school to invite their classmates into their Club Penguin igloo instead of playing with these same friends on the playground. Too young for email, text messages and even phones, social networking is becoming part of their everyday communications, a habit they will carry with them as they go through school and into the workplace.

Today, the majority of us over 30 have two primary contact points. Our email address and our (mobile) phone number. I am not talking about the tech savvy early adopters, who are constantly IM’ing, twittering or “pinging,” but rather the masses. If someone absolutely has to communicate with us, these are the two places that they will try first.

Increasingly thirty-somethings are becoming less and less reliant on email as a standalone silo of communication and more and more, they are choosing to center their primary communications on their Facebook account and their mobile phone. When they are at their PC, Facebook messaging is the way they exchange messages. It used to be IM. Remember that ever present MSN sound you would hear each time a new message arrived? I would go crazy as my kids would have 20 simultaneous conversations and I would hear that sound every five seconds for hours at a time each evening. That sound is fading into memory. Hotmail and Gmail open on the desktop? No. More than likely it’s the Facebook home page.

With the major social networking players, including not only Facebook and MySpace, but also LinkedIn, Plaxo Pulse, Ning and others, each counting their members in the tens of millions, it’s surprising they haven’t caught on to their role as the central hub for all communications. The capabilities of the social network communications infrastructure remain rudimentary. There are many pieces of the puzzle that are still missing.

Realizing that instant access to information about one’s social network comes with desire for real time communication with the people in that network, some of these social networks are starting to roll out instant messaging. Some are doing a better job than others. Those I’ve seen follow a pattern of enabling communications as an application layered on top of the social network platform. I don’t think a standalone IM client like the MySpace/Skype messenger is the answer. Something that integrates with the core communications experience is.

This need is even more apparent when you extend social network communications to mobile devices. Until our university students and teenagers become the next league of desk jockeys, they still spend the majority of their time away from a PC. But they are never without their mobile phones. Despite the fact that more people are electing to use their mobile phone as their only phone service, the mobile landscape hasn’t changed that much. While some phones have the ability to surf the Net, IM and record video, the mobile phone experience is still centered on SMS and phone calls.

Most of these kids can’t afford to spend a lot, so they are economical with their mobile usage. Ad supported communications will change this reality as the mobile experience is subsidized with interactive advertising. This shift is the blue ocean for social networks and will be the focus of attention so that the core communications experience follows the user wherever they are. Social network-based communication needs to be usable wherever these kids are; getting an alert about a new communication and then having a limited ability to engage in the conversation is frustrating.

When you look at Facebook and the number of users with the mobile application installed (the application that allows Facebook users access via a browser page on their mobile devices) compared to the overall user base, mobile social networking is still in its infancy: only three million installs of the mobile application versus 70+ million users of Facebook overall (this number does not include BlackBerry users who had the application pushed out to their device automatically). There are no stats on how much either is actually used on a regular basis, but it is surely pretty small given the limited usability of these applications and, most importantly, the real time interaction that is missing. Real time is where it’s at.

Let’s take a leaf out of the RIM book of wisdom. Look at how addictive the real time push of email has become for business users. That instantaneous “call to action” that makes the BlackBerry addictive is the same as SMS. Facebook SMS alerts are simple and immediate. Instant messaging is similar but mobile IM, while popular, is still far away from the usage we see with SMS.

Once social networks can realize the value to their users of building consolidated, real time communications into their core platform, we will notice a sea change in communications on par with the invention of the telephone. Does that sound like hyperbole? Think about it for a moment. The phone was the first mass real time communications tool and its adoption was fast and widespread. Integrating real time text, voice and even video communications into a core social network platform will tear down the silos that are keeping each communications service separate and distinct. Once consolidated, the social network becomes the key to all our interpersonal communications, and we can access it as fully on the PC as we can on the mobile, making communications possible from any device we own.

Because communications are both multi-faceted and siloed, we are forced to maintain numerous accounts: email, phone, instant messaging, twitter, etc. Why should I have to maintain contacts in Outlook, my online email account and my mobile device? Why do my voicemails end up in three different places, my home, my office and my mobile phone? It’s all about the multiple contact points and not knowing how to consolidate these.

To be clear, I am not talking about “unified messaging” which is a top down approach (think of the bushy end of the tree). I am thinking about a single point of entry where everyone gets to reach me wherever I decide that they should reach me. I have friends and a whole lot of information about them. I don’t need a separate contact list also, or many separate contact lists. I have categories for my friends. Some of them are acquaintances on a “limited profile.” I want to use these same techniques to determine who reaches me where and when. When I want to call someone, let me click their picture and based on their preferences and our relationship, point me to the right place to reach them whether it be by voice or text (or even video).

Let’s not forget one other very important piece. With communications centralized through a social network, the social network can derive revenue streams from something as commonplace as a phone call. In fact, given the types of usage these networks see every day, the social networks are forsaking $millions in lost revenue every day because they haven’t integrating communications into their core platform and are not taking advantage of the revolution they themselves started!

It’s time to make change happen. The social networks are battling not just for market leadership, but to become the centre of our personal universes. It’s not a guarantee that the most popular networks today will be the winners of tomorrow. What could be more compelling than offering people a central hub through which all communications takes place? I predict that the first company that embeds the type of communication platform I’ve described above into their core offering will be a clear market winner.

Talkster is featured in the March issue of O, The Oprah Magazine.
The article is titled: 14 Solid-Gold Ways to Save…Without Giving Up Your Latte

Talkster.com lets you chat for free with people around the world for as long as you please. Enter your home or cell number and a friend’s number at the website. Talkster issues a set of local numbers you can call to connect.

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Read about Talkster on trendwatching.com:

This month, we’ll be looking at FREE LOVE, which is all about the ongoing rise of ‘free stuff’, and the brands already making the most it. Not to mention the millions of consumers who are happily getting into a free-for-all mindset. Absorb and apply!

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By Maria Puccio
Marketing Manager at Talkster

It’s Valentine’s Day, a time when everyone’s thoughts turn to love, relationships, flowers and in my case – chocolate!

But here at Talkster, since communications are what we do, and most of our time is spent assuring that people can communicate easily and seamlessly, Valentine’s Day makes us reflect on our users (I like to call them “talksters”) and how they keep up with loved ones who are far away.

We’ve had lots of people write us to say that Talkster has helped them stay in touch with a long-distance loved one – be it a boyfriend, girlfriend, parent or sibling – by giving them the opportunity to call more often and feel closer to that person. We are always pleased to get those comments and notes because it shows us that people are using Talkster and liking it.

Patrick wrote to tell us that after having lived in Berlin for a over a year, he made lots of friends there, and now uses Talkster all the time to stay in touch now that he’s back in Australia.

But one of my favorite notes is from Catherine, who writes:

“I found this on Facebook, and honestly thought this was too good to be true… that there had to be some catch.

I looked into it as much as possible, read up on some reviews, and realized this might just be legit.

So someone extremely special to me lives in London, while I’m in the US. I haven’t heard his voice in over 3 months, and can’t see him for another 5. I prayed that this would work, because it would truly be a dream.

So I dialed, got the number to call….the phone is ringing…and he answers. My heart skipped a beat. We were able to talk for multiple hours.

I love this service, and thank you so much. You offer a truly amazing service that has given me the best Christmas present I could ever ask for. I got to hear the voice of the one I love again, thanks to Talkster.”

Since so many talksters are in long distance relationships, I was curious to know more about long distance relationships and communication. I did a bit of research to see what the experts say.

According to relationship expert Dr. Laura Berman, in her article, “Long-distance love: How to make it fly”, communication is essential.

Dr. Berman outlines how one of the problems long distance relationships face is not knowing where the person on the other end is, not being able to reach them and then worrying about what they’re up to. Dr. Berman’s solution to this is to always agree on a time when you are going to call each other.

“When your partner is miles away, it is easy to jump to conclusions when he doesn’t answer his phone….Even after you find out the truth (he was taking a nap and didn’t hear his phone), the stress and anxiety you created during those incommunicado hours have already taken their toll,” Berman says. “To avoid this problem in the future, agree on a time when you and your partner will call each other, no matter what comes up. Pick a time that is convenient for both of you, whether it is first thing in the morning or on your respective lunch breaks. Keep your phone date at all times, and if you must break it, be sure your partner knows ahead of time.”

Another problem Dr. Berman addresses that can arise in long distance relationships is loneliness. Dr. Berman’s solution is to “stay connected”. One way to do this is to find “a free online telephone service that lets you call land lines and cell phones all over the world”, Berman says.

And if you’re not in a relationship, Valentine’s Day is a great time to get in touch with friends or family and remind them that they’re important to you too. May from Toronto is planning a big Talkster conference call, where she can speak to family members in Vancouver, Hong Kong and mainland China all at once. Now that’s pretty sweet!

Wherever you are, and whomever you’re calling, Talkster wishes you a Happy Valentine’s Day! Stay in touch!

Celebrate the Year of the Rat with Free Calls from Talkster

By James Wanless
COO of Talkster

2008: The Year of the Rat

A Rat year is traditionally known as a time of hard work, activity and renewal. According to the Chinese zodiac, 2008 will be a great year to begin a new job, get married, launch a product or make a fresh start.

This seems fitting as Talkster has just announced the launch of free world dialing to or from anywhere in Mainland China! Now families can stay connected for the New Year for free by using the Talkster service, which is now available in Mandarin at www.talkster.cn.

With one-fifth of the world’s population residing in China, the addition of this country seemed a perfect fit for Talkster’s mission: to make telephony free—period. There is no catch here.

While other companies are offering special reduced rates as part of a limited time promotion, they won’t be offering free calls to China after the New Year’s Lantern Festival like Talkster will be. And, of course, there are talk time limits and hidden charges with those other services.

Talkster wants to make international, long distance and group phone calls free for all residents of China, as well as their friends and family in other countries around the world, year-round, with no restrictions on how long you can talk.

If you can’t make your New Year’s reunion dinner this Thursday, why not try free conference calling from Talkster to connect the entire family for the cost of a local call?

Don’t want to miss Shou Sui? Talk with your family members for free the night after your New Year celebration to reminisce about the events of the passing year and welcome the year that has arrived, without having to worry about expensive long distance calling or your calling card minutes running out.

Make sure your 吉祥話 (Jíxiánghùa) are heard loud, clear and inexpensively! Use Talkster to visit with family and friends spread across the globe for years to come.

May your New Year be prosperous and full of luck,

James Wanless

In China, the Rat is considered a courageous and enterprising animal example. People born in a Rat year are said to be realistic, perceptive, charming, ambitious, logical and creative. To learn more about the Chinese animal zodiac and find out what animal your birth year corresponds to, visit http://www.c-c-c.org/chineseculture/zodiac/Rat.html.

By James Wanless
COO of Talkster

An interesting post this week from our friend Luca Filigheddu comparing Talkster to a number of other (VoIP) services prompted me to put on my blogging hat. The services Luca compared were categorized as VoIP services but to a user of these services it’s not VoIP that makes it as interesting, rather it’s the cheap price.

Luca wrote a very good subjective piece that leads into a broader discussion about the cost of a call and the attempts to make it ever cheaper.

I have often heard it said that quality counts and at a certain point, trying to shave off a cent here and there on the cost of the call substantially reduces the quality. If you can’t shave the cost then how does a business create margin? If they give away calls between their users (calls that costs one of these businesses money) how do they in the long term make any money? We can all wait for the Skype/eBay acquisition fairy to come and visit us one night, but let’s face it, that’s not likely to happen.

In our experience (even long before starting Talkster) there’s nothing like free to acquire customers. Don’t get me wrong; you still have to give an acceptable level of quality, but free definitely “sells.” But at the end of the day, it doesn’t matter if something is free if its quality is sketchy.

Also, adding value (e.g. convenience, new features) to the call allows a voice service to differentiate its “free” service over the next company’s “more free” offer. Talkster has some things up our sleeve in this regard as well, but I am going to save that for another day.

I’ve written it many times here and discussed at length in interviews and at industry speaking opportunities - - Someone has to pay for free calls. Talkster believes that when we balance the issues of credit control (especially outside North America) with the minimal margins that cheap calls generate, our ad-supported model is the way forward for consumers. Advertisers pay for calls on the Talkster service. Because they pay for the call, we can ensure we are delivering the quality people expect when they place calls.

JaJah made an announcement about an ad-supported beta offering well after we launched our service at the CTIA show, and it certainly seems to be a bandwagon that a number of other companies are jumping on.

Advertising seems like an easy play but recognize that beyond the technical issues there are some fundamentals that need consideration. For example, advertising becomes annoying if it’s not relevant. Do I really want to listen to a commercial for discount car insurance for seniors if I am a 20 year old university student with nothing but a public transit pass? The answer is no.

If it’s targeted and relevant an ad becomes an offer. When an ad is regarded as an offer by the consumer on the receiving end, they no longer view it as obnoxious and are more likely to engage with it.

Equally, the advertisers need to reach the right audience in order to increase brand awareness, inquiries and ultimately sales of their products or services. Beyond targeting, to maximize the effectiveness of a campaign there can be “calls to action” within the advertising channel that allow callers to interact with an ad and bring immediacy to an offer.

At Talkster, our team has individuals with more than 30 years (yes, some of us – not me — are that old) of direct marketing experience and know how to make this work. Being able to effectively communicate the offer and deliver the mechanism to close the sale is at the core of what we have developed for advertisers.

For now we are satisfied to be recognized in the same pool as a number of VoIP players. But in the near future, we will be viewed in another light as we build on our Ad Supported Communications Platform and extend our reputation as more than just another cheap or free phone call.

It’s that time of year again where if you (like me and many others I know) have family spread around the globe you figure out how you can possibly get everyone together in one place at one time or else you spend the whole holiday season driving and flying from place to place to see them all. For the record, when I have grandchildren, I expect everyone to travel to me!

Joking aside, it’s tough to get one’s entire family in one place to catch-up on all that happens while we are apart. It doesn’t matter which time of the year it is, the family news gets passed from one person to another in a series of one-on-one conversations as the phone is passed around from person to person. This year will be different though. The Talkster family is very proud to play a part in connecting families this holiday season with our “Talkster Free World Dialing” service we launched this past October. With Talkster’s Free World Dialing friends and families can set up group calls with up to five other people from around the world.

It’s really easy to use and best of all the calls are free! All you do is go to the Talkster site from your PC or mobile phone, enter the names and numbers of the people that you want in the group call and each of them is assigned a local number to call to join the conversation.

When we built Talkster’s Free World Dialing we knew it had to be easy to use, even for people who don’t have a computer. This means when it’s time to make our family group conference call, I don’t have to rely on my old Uncle to remember what time the family call is going to start. All I do is dial the local number, record a short message telling my family to all to get on the line so we can chat and Talkster does the rest. Each of my family members gets a call from Talkster where they hear my short recorded message. They hang up the phone and dial in to their local Talkster number. Once they have connected, we are joined together. We all listen to a 10-second targeted audio ad that fully subsidizes the cost of our call, and then we can talk as long as we want.

It doesn’t matter if all of my family members don’t all call into our group call at exactly the same moment. They can join at any time the call is in progress. We can talk for as long as we like and people can come and go as they please.

This year there’s less traveling needed yet my family and yours can still share their news and good wishes together. I know nothing is as nice as being there, sitting around the table together with loved ones; but Talkster is a good alternative to keep families connected when you can’t all be in the same place at the same time.

Happy Holidays to you and yours from all of us in the Talkster family.

By James Wanless
COO of Talkster

Yes, I did write higher costs. While everyone was basking in the sunshine feeling happy about the EU’s recently enacted mandates to lower roaming charges that would let European vacationers call home from the beach in Spain for 49 Euro Cents and receive calls for 24 cents or less, there is one little detail that has been missed: for many operators the cost of a call within the country you are roaming has actually gone up! I have posted on this topic before, and this result is not entirely what I expected.

The EU mandate was to lower the cost of calling home and receiving calls while roaming. But the EU regulation left open a very large door into which many mobile operators have stepped – in country call rates. The unfortunate thing for people traveling in Europe is that your operator is not inclined to share these new rates with you. So in order to find the truth, I did some grassroots research on my own.

I did some digging with Belgian and UK Operators and here is what I found. With the Belgian Operator BASE, when you are roaming in the UK and want to make a call home to Belgium the old price of about 1 Euro has been changed to 49 cents. That’s great. But now, should you want to make a call in the UK (for example call a restaurant, hotel, local office, customers, etc .etc.) it used to cost you 28 cents a minute. But with the new EU roaming mandate, the cost is now 49 cents a minute – nearly double!

The other big money spinner is the cost of sending an SMS. 54 cents to send an SMS is a HUGE mark-up over the wholesale costs. And if you want to use the mobile internet or get your email? Euro 5.50 per megabyte.

There was a lot of talk about where the operators were going to make up the lost revenue from their roaming cash cow. I think that I have discovered some of them.

Here is a useful link to the official EU roaming site with further links to the individual operators (often outdated) sites on individual roaming costs http://ec.europa.eu/information_society/activities/roaming/implementation/benchmark/index_en.htm

Talkster of course has been working to help people using mobile phones to keep their roaming and long distance costs in check. We are on the cusp of unveiling our new service that will mitigate a lot of these roaming costs. Stay tuned for our announcement this Fall when we take the wrapper off our new service. We now know that roaming Europeans will LOVE it!

InformationWeek just ran a group review of six companies positioned as “Skype Alternatives.” The review was quite favorable to Talkster, stating:

“Talkster’s technology has an immediate benefit — it lets you pick the least expensive way to reach your contacts — and it’s got long-term potential as well, because voice communications are moving away from reliance on the 10-digit telephone number and over to Web 2.0 addressing schemes, such as IM handles that can be resolved to IP addresses. Talkster is positioning itself for the future.”

You can find the entire review here.