Sunny Ahn's WebLog

It continues to amaze me that there are still telcos in this world that are still looking to sell their directory business.  Yes, if you take a look at the recent purchase price of directory firms, it is easy to see why telcos are so enticed to sell.  Just look at what some firms have sold for in recent years.

Acquirer/Target/Amount (Euros billion)

• KKK and Goldman Sachs / PagesJaunes / 5.6
• RH Donnelley / DexMedia / 7.9
• TPI / Yell / 3.3
• BC Partners / SEAT  5.6
• Carlyle and WCA&S / QwestDex / 7.2
• RH Donnelley / Sprint / 2.3
• Bain Capital / SuperPages Canada / 1.3
• KKR / Bell Canada Directories / 1.9
• Apax and Hicks Muse / BT Yell / 3.5
• Macquarie / Yellow Brick Road / 2.7
• Apax and Cinven / VNU World Directories / 2.1

But there is a reason why both private equity and print firms are jumping at the opportunity to acquire these assets.  These directory assets certainly generate a healthy and constant revenue stream.  But more importantly, there are indirect assets (customers, brand) that are most crucial.  Specifically, for telcos, outside of their basic infrastructure (which depreciates and constantly needs upgrades), their brand and customers are their core assets.  Why would you ever give that up, particularly if you are a fixed line carrier.  It is hard to believe that a short-term cash infusion will, in the long term, provide the necessary foundation for growth if you sell your customer base and brand away.

The market is finally starting to move towards private, aliased-based directory listings that can be utilized for connectivity.  These DNS-based listings can be alpha character-based (e.g., Best Plumber in Boston) or numeric-based (e.g., a second alias phone number that is not your actual phone number).   By creating an abstraction laver between your actual phone number and your directory listings gives individuals the power of privacy, control and personalization.

People want to be connected between folks they know, but don’t want to reveal their private information (e.g., actual mobile phone number).   One can see the benefit for those within the social networking and dating world – connecting without revealing your personal details.  One can also see the applicability within the professional world – providing simple ways for people to pass their contact information in simple, easy-to-remember listings.

Market events are confirming this market move – you can download your Skype buddy list on your mobile phone and make mobile calls via this buddy list, without need the reveal your mobile number.   the new year promises to bring more developments – both privacy and convenience based. 

The latest rumor on the launch of a wireless 411 service in the US is that the service is not moving forward.  The problem from day one has been the view by the public, press and government of the lack of privacy to the consumer with such a service.  This lack of privacy is certainly real.  Consumers consider their mobile devices as the ‘last bastion’ of privacy, and are loathed when they get calls from people they don’t know.   Why would I list my name and mobile number in the directory?  I certainly would not, and I’m from the industry.  Even with opt-in, not publishing the number in alternative databases and not charging not to be listed, these feactures do not provide nearly enough privacy for the individual. 

In addition, the issue of successful connection is a real dilemma since only a handful of people would ever list themselves in such a fashion.  And with only a small percentage of individuals in the directory, the chance of success from a caller’s perspective to get the person one is looking for is so small, the telcos will certainly get a backlash of people complaining about not finding the right individual.

The general problem is that you can’t force a traditional model (directory assistance “DA” to fixed line devices) on a new one (DA to mobile phones).  Part of the issues is the perception of the service, given that people automatically think the service will be the same as the traditional one.  While I continue to believe there is alternative privacy technologies that can hide the phone number to contextual listings beyond ‘name and address’, technology alone is not going to solve the problem.

The service, if one ever succeeds in the US, has to be driven, in many respects, by the consumer themselves.  We see the beginnings of new models every day, in new listings being created by services such as Match.com, Myspace where identities are created, communication is enabled, yet privacy in left intact for individuals.  Let consumers drive how they are listed and what devices they want to associate with those listings within the groups/communities they belong in. 

I was just speaking with someone recently about the increased opportunity for contextual listings in both the online and mobile world.  “Words/names are the new numbers” he said – how do we get things more personal and targeted?

Interestingly, as phone numbers are quite unpersonal, and advertisers continue to look for ways to brand themselves, targeted-word based, contextual listings become a viable solution. 

In addition, as individuals continue to obtain multiple devices (and multiple contact methods – phone numbers, email addresses, etc.) the issue of privacy and control becomes great.  We have multiple identities – professional (the folks we work with), personal (the people we socialize with) and private (the people we privately communicate with) in nature – contextual listings can help segment those identities.

The CTIA launched the 6-digit short code service in the US today.  Questions still arise if many individuals actually utilized the 5 digit codes. 

http://www.wirelessweek.com/article/CA6339572.html

ICANN recently announced the approval for a DNS based .tel service to Telnic — “a universal text and navigation system for contact information over the Internet. Mobile device users could communicate and access the services of organizations or individuals with .tel domain names.”

Agree that this is long over due – the issue will be the demand of applicants, both indiividuals and businesses, that participate.  Names are definitely the new numbers. 

http://www.digitmag.co.uk/news/index.cfm?NewsID=5776

Our company received another patent on directory services and eCommerce, this time in New Zealand.  Its been a long road to enhance our intellectual property portfolio.  Continue to believe there is tremendous value in contextual listings for individuals (white page) and businesses (yellow page) that provide privacy and convenience. 

http://www.contextconnect.com/news.aspx?n=27

Take a look at my testimony to Congress on the topic of privacy and control as it relates to wireless directory services.  love your feedback.

 http://energycommerce.house.gov/108/Hearings/09292004hearing1387/Ahn2245.htm

It amazes me that there is no national integrated directory for emergency first responders and volunteer organizations.  The work by Comcare is certainly the beginning but more attention, education and funding needs to take place on this topic.  The US also needs an integrated public warning system that coordinates [land, water, air] border control organizations.  I have attached the latest Comcare newsletter on their EPAD product. 

http://www.comcare.org/projects/The%20EPAD%20Report%201Q2005%20Demo.pdf