What stops you from using USSD services? Continued from the last post. And more to come.

On Thursday last week I have posted the following question on LinkedIn:

What stops you from using USSD services?

I have gathered 10 13 answers by Monday Thursday (Novosibirsk time). Of which two three people (who were prompted, and have received an explanation) said they are not familiar with USSD, even though the question is posted in Telecommunications section of LinkedIn’s Q+A. There are 20% of “I don’t know” answers (even more with the latest stats – 23%).

Good news: today I talked to my people and we will try to post a live demo of some coolest services which use USSD and which EVERYONE can try. Follow the blog for more info!

Back to the topic of obsticles to USSD though.

Wait! Before we launch into it, let’s celebrate our latest achivement — a new initiative for the mobile community! It’s in the form of a news:

Travelers Are Hungry for Information
Eyeline’s Patented System Will Serve Information to Roaming Travelers

May 1, 2008

During traveling one cannot use mobile services of the visiting network, like weather reports, translation services, or news alerts. Moreover, travel-specific services are usually unavailable on mobile phones.

“When a person is roaming, he or she is limited to basic mobile services – voice communication, text messaging, and packet data transfers. Updates on local weather,  visited city’s nightlife, news, and events delivered by USSD dialogues or Premium SMSes, which are consumed, by the way, by 15 percent of all mobile users, have never been offered in roaming because billing data exchange between networks for premium rate services was not there,” says Alexey Smelov, VP Foreign Markets.

Eyeline Communications Inc., a technology company serving the largest mobile operator in Russia with VAS solutions for more than 5 years, has received a patent for a system allowing provision of value added services in roaming.

The patented system removes the main stumbling block, namely limited information exchange between networks. VAS served to roaming visitors are recorded as premium rate voice communication (with labeling designed for later recognition of provided services) that is transmitted via regular protocols to the home network for billing.

Eyeline’s patented system allows mobile operators to bill and share VAS traffic. With VAS and roaming charges growing in importance every year, mobile operators can add 10 to 20% to their overall revenue by including VAS roaming traffic generated by information-hungry travelers.

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If you would like to learn more about Eyeline’s patented system “Provision of Value-Added Services in Roaming” or to schedule an interview with Alexey Smelov, call +7 (383) 363-0139 or email info@eyeline.mobi

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Now, back to the answers received to my question about main obsticles to using USSD.

“…limited routing and billing capabilities…” — points out Marinel Rosca (Service Development Manager – Product Development – http://www.acecomm.com/solutions/Welcome.html)

See the patent news above! We know how to overcome this. Also there are additional ways to go around these issues.

“It is considered “old way” — oh, we heard this one so many times! The author, Marinel Rosca, answers himself: “It is still one of the most handy Solutions when a SP is pressured to go live with a Service which is not totally prepared.” Even more: it is a way to start using mobile services on a daily basis by any business in any country… unprepared!

Murad Mamedov (Wide Area Specialist, http://www.telenity.com/usc.php) says: “From my practice I see that operators find USSD as a competitor to SMS.” Heard that one too. No, it is not a competitor. And it is better than SMS in terms of growth. Look at this graph — our real data which is very representative of any SMS/USSD service combination:

In words: it is better with USSD, worse without.

If reponses will be arriving at the rate they arrive now, I will have some time to prepare my answers to your answers. But let me tell you right now: I don’t see any serious threats to USSD rapid growth but for “bad marketing”.