Trends

Push to Talk

This new mobile service sets up a group call at the push of a button, says Vinutha V

With one call you can talk to many group members without spending any more on the call. That’s the beauty of Push to Talk (PTT). PTT is a breakthrough in mobile phone services. It lets users chat by simply pushing a button on a PTT-enabled mobile phone, there’s no need to dial. It is similar to a walkie-talkie. Both use "half-duplex mode" where only one person can talk at a time by pressing a button. The speaker transmits packets of data to the listeners, who cannot stream data while they are receiving it. Unlike a walkie-talkie that operates over radio frequencies PTT uses the cellular network increasing range and roaming capabilities.

However, the PTT-enabled handset has a buddy list showing who is available for chat. The service also permits PTT conversations to be set up between multiple users and conversations can be recorded and forwarded to other users.

PTT can be termed as ‘instant voice messaging’. We expect this technology to go the way of voicemail, call waiting and other successful features that were once cutting edge, but have become par for the course.

Testing the waters

PTT is still in a testing mode in India. Tata Teleservices (Tata Indicom), Hutchison Essar (Hutch) and Bharti Cellular (Airtel) have announced PTT services as they see tremendous potential for this technology in both business and personal usage. It can enable group communication to a greater extent. As India is one of the fastest growing markets for mobile technology in the APAC, consumers are seeking value-added services. The advantage of low cost and convenience will drive the PTT market in the country.

Opportunities for PTT

The technology has tremendous scope for cops, taxi drivers, logistics, security services, fleet management and pizza delivery to name but a few applications. Going by the feedback, cellular operators are optimistic about garnering a chunk of revenue from the service. “Test marketing tells us that 20 percent of our existing customers will be a good prospect for subscribing to the PTT service,” says Prabhat Pani, chief operating officer, Karnataka and Andhra Pradesh circle, Tata Teleservices. PTT is expected to be a hot app with youth, say cellular providers.

“Mobile phone services are constantly evolving. PTT incurs nominal investment as it uses the existing CDMA network,” says Pani. Hutch and Airtel too confirmed that their services will be available on the GPRS network.

Samuel Selvakumar, chief executive officer of Hutchison Essar South adds, “Offering distinct value-added services such as PTT helps us stay close to customers and increase customer loyalty.” By the middle of next year, Indian subscribers will be able to tap into this technology. “It’s going to be a 3G technology, which enhances customer retention. PTT will have a healthy market opportunity in India,” says Deepak Mehrotra, chief operating officer, Bharti Cellular, Karnataka.

It’s the ARPU

Cellular providers are betting heavily on growth from data services as the prices of voice calls plummet. The voice ARPU (Average Revenue Per User) is coming down because of reduced rates for voice calls. The ARPUs of private GSM operators dropped by 17 percent in 2003-04 from Rs 523 per subscriber in Q1 to Rs 432 in Q4. From a business standpoint, this is driving other carriers to offer PTT services.

Sources say that most cellular operators will offer PTT at a flat rate of Rs 100 per month allowing customers to make unlimited PTT calls. “If our existing customers opt for this application, it will be an ‘incremental and additional revenue’ for us,” says Pani. Tata Indicom, expects to launch its commercial PTT service before end-2004. It will price PTT services much lower than its existing services.

Handsets to Talk

Cell phone manufacturers are developing multi-standard support for PTT. Hutch is using GPRS to deliver PTT services compatible with a few models from Nokia (7650, 3650 and the 3660) and Sony Ericsson (P800 and P900). Tata Indicom’s PTT service on CDMA will be delivered via the Kyocera KX 440. Airtel is testing PTT service using Motorola, Sony Ericsson and Siemens handsets. “We are coming up with three to four mobile handsets for the GSM and CDMA platforms by early 2005,” Parmindra Kawtra, country head, director and general manager, Global Telecom Solution Sector, Motorola India.

This technology will be particularly handy when conversing with a group of colleagues or friends across locations. That said, instant communication is not guaranteed and delays of anywhere from 0 to 6 seconds can take place.