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    More mobile social networking: Vodafone acquires ZYB

    Vodafone has acquired ZYB, a Danish company, for €31.5m. ZYB has developed a social networking and online management tool for backing up and sharing contact and calendar information online. This acquisition represents part of an intelligent effort by carriers to facilitate the movement of social networking services from PCs to the mobile phone.

    An increasingly important function of social networking services is to serve as a form of ad hoc unified communications for the general population. Consumers are using social networking services in order to maintain presence on a network, and mobile phones are an obvious extension of this effort. Services like Twitter and Jaiku were the first to gain widespread consumer adoption, and large generalist social networking services like Facebook quickly followed suit.

    “Consumers will increasingly be able to move seamlessly between the PC and the mobile phone, keeping their friends and contacts aware of their movements as they choose,” said Ri Pierce-Grove, analyst at independent market research firm Datamonitor. “This has a number of positive consequences for providers like Vodafone. It increases consumers' use of data plans, and, potentially, provides a new source of revenue via advertising. Both mobile providers and social networking services are competing to find the right mix of platforms and partnerships in order to meet consumer demand.”

    ZYB's upcoming Phonebook application is a clear move to ease consumers' movements between PC and mobile devices, as well as to deliver some of the benefits of unified communications. One of the great advantages of social networking services is that they significantly reduce the effort of keeping in touch with friends and keeping contacts updated. By allowing users to share and backup content when they are on the move, to share calendars, and to make it clear when they are available for a phone call, services like ZYB are likely to meet with positive reception.

    Enabling consumers to automatically communicate their location to their contact base is a risky move, and one that is meeting with initial resistance due to privacy concerns. However, with the right safeguards, presence-based social networking applications can succeed.

    Whether or not this particular acquisition will succeed is not obvious; this market is still in its early stages and competition is intense. However, by moving into the social networking sphere, Vodafone is demonstrating that it understands which way this market is going.

    About Ri Pierce-Grove

    Ri Pierce-Grove is an analyst on Datamonitor's Customer Interaction Team where she covers social networking and voice business technologies. She initiated and leads the company's social networking research area, where she focuses on how social networks become successful and what role they play in the enterprise. She is a highly regarded trend spotter and her work has been covered by major media internationally, including the New York Times, the Daily Telegraph, CBS Marketwatch, ITN News, Le Monde and CNET. Ri Pierce-Grove identified social networking as an important emerging research area. She surveyed the worldwide usage of dozens of social networking services and developed a methodology that compensates for systematic biases in web traffic sampling that allowed her to produce groundbreaking research into global market share, revenue and the international growth of social networking services. She has produced numerous reports and consulting projects in voice business, focusing on consulting and business systems integration, speech analytics, outbound interactive voice response, recording, and quality monitoring. Prior to joining Datamonitor, Ri was an independent analyst. She built her research credentials at the Columbia Institute for Tele-Information, where she focused on strategy, management, and policy issues in telecommunications, computing, and electronic mass media. She holds a B.A. in Political Science from Bryn Mawr College.
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