December 9, 2012

Mobile Video Calling Creates a New Frontier
By QUENTIN HARDY
NY Times

http://www.nytimes.com/2012/12/10/technology/mobile-video-calling-spreads-as-smartphones-and-tablets-improve.html


PALO ALTO, Calif. — The next competition in technology is your face — 
anywhere, anytime.

As the cameras and screens of smartphones and tablets improve, and as 
wireless networks offer higher bandwidth, more companies are getting 
into the business of enabling mobile video calls.

The details vary from one service to the next, but the experiences are 
similar: from anywhere in the world with a modern wireless network, a 
smartphone’s screen fills with the face of a friend or relative. The 
quality is about the same jerky-but-functional level as most desktop 
video. Sound is not always perfectly synced with the image, but it is 
very close. The calls start and end the same way, by pressing a button 
on the screen.

Mobile video calling has risen so quickly that industry analysts have 
not yet compiled exact numbers. But along the way, it is creating new 
business models, new stresses on mobile networks and even new rules of 
etiquette.

“All the communications — social messages, calls, texts and video — are 
merging fast,” said Eric Setton, co-founder and chief technology officer 
of Tango Mobile, whose free video calling service has 80 million active 
users. An additional 200,000 join daily, Mr. Setton said.

Once an interesting endeavor for a few start-ups like Tango, mobile 
video has caught the attention of big companies. Apple created FaceTime 
and made it a selling point for the iPad.

In September, the company made FaceTime available on cellular networks 
instead of limiting it to Wi-Fi systems, almost certainly in response to 
increasing consumer demand.

Last week, Yahoo purchased a video chat company called OnTheAir. And in 
2011, Microsoft paid $8.5 billion for Skype, a service for both video 
and audio-only calls. Though most people use Skype on desktop and laptop 
computers, the software for the service has been downloaded more than 
100 million times just by owners of phones running Google’s Android 
mobile operating system. Microsoft built a service for its Windows 8 
mobile phone that lets people receive calls even when Skype is not on.

Google, which has more than 100 million people a month using its Google 
Plus social networking service, now offers more than 200 apps for its 
video calling feature. It says it is interested not in making money on 
the applications, but in learning more about them so it can sell more 
ads by getting people to use its free video service, called Hangouts. 
Hangouts can be used for two-person or group calls, or for a video 
conference with up to 10 people.

“On a high level, Google works better when we know who you are and what 
your interests are,” said Nikhyl Singhal, director of product management 
for Google’s real-time communications group. “Video calling is becoming 
a basic service across different fronts.” While Mr. Singhal is an 
occasional user, he said, his 4-year-old daughter “is on it every day.”

Don’t expect video calling to improve productivity. Tango uses the same 
technology that enables video calls to sell games that people can play 
simultaneously. It sells virtual decorations like balloons to drop 
around someone’s image during a birthday call (both parties see the 
festive pixels). Google says some jokey applications on Hangouts, like a 
feature that can put a mustache over each caller, seem to encourage 
people to talk longer.

Currently, popular two-way games like Words With Friends on Facebook 
work by one player making a move and then passing the game over to the 
other player, not watching moves as they are made. Another promising 
area is avatars, like cartoon dogs and cats, that mouth speech when a 
user wants to have a video call but does not want to be seen.

The prospect of having to appear on-screen at any given moment might 
sound like a nonstarter for people who worry about bad hair days. But in 
fact, using mobile devices for video calls may be less bother than it seems.

“There may be natural inhibitions to being seen, but when I’m on a 
mobile device I’m out and about, so I’m more likely to be presentable,” 
said Michael Gartenberg, a consumer technology analyst at Gartner. “How 
people use this remains to be seen, but they are starting to expect it.”

Yet a new etiquette for mobile video calls is already emerging. People 
often text each other first to see if it’s O.K. to appear on camera. 
Video messages sent in the text box of a phone, like snippets of a party 
or a child’s first steps, are also useful precursors to video 
conversations. Mr. Singhal said making avatars for users of Hangout 
would be “an extraordinarily important area” as well.

The greatest challenge for the business may not be getting more 
consumers to use the service, but making sure the service works. Most 
phones have slight variations in things like camera placement and video 
formatting from one model to the next. “A camera can show you upside 
down if you load the wrong software on it,” said Mr. Setton of Tango.

As a result, the 80 engineers among Tango’s 110 employees have adjusted 
their software to work on more than 1,000 types of phones worldwide. The 
top 20 models have more than a million customers each, but the 
complexity of building software for a wider range of phones has made it 
hard for new mobile video companies to enter the field, Mr. Setton said.

Tango’s average video call used to last six minutes, Mr. Setton said, 
but when the company started adding other applications to go with the 
videos, like games and designs that float over people, the average call 
length rose to 12 minutes.

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