Why I Think EQO Is Doomed

Filed under: software,voip - 15 Sep 2008 0:01
Image representing EQO as depicted in CrunchBase
Image via CrunchBase, source unknown

I don’t like to prognosticate, but after reading the latest PR speak from EQO, I am not overly optimistic about EQO’s chances at success.

The latest thing they are releasing is a version of their EQO client geared specifically at operators. EQO originally started out as a way to bring Skype to your mobile, now they offer a multi-IM client along with a way to make international calls using “local” (to the caller) gateways. This is similar to the consumer Jajah service, Rebtel, and more recently, Truphone Anywhere.

While I don’t think their downloadable consumer-level application has this, they supposedly provide more functionality:

EQO CE transforms almost any mobile phone’s traditional phonebook into a social phonebook. EQO’s social phonebook allows users to stay connected to friends, family and business contacts – from anywhere at any time.  Whether users want to view their contacts’ presence, status and location, or communicate with them via IM, messaging and voice, EQO offers it all from an integrated mobile application.  EQO also interfaces with web-based social networks and content sites, allowing users to subscribe to friend and news feeds to get relevant information in a timely fashion.  Across all supported platforms, EQO’s community has exploded to millions of users in over 220 countries.

So why do I think this is a bad strategy? First, relying on the slow, plodding carriers to get built into their branded phones. Some of the things I’ve seen related to operator acceptance testing for mobile phones suggests this will be a long, slow process that could take years to see anything worth the trouble.

The client itself is fine for an end user, but a carrier might see it differently. It essentially cannibalizes SMS by giving people away around the cost–providing access to IM services. It eliminates International long distance charges–something the carriers make an obscene profit on, if you ask me.

Finally, while the Nokia version of the EQO client itself has improved quite a bit from the last time I looked at it, there are a number of other, similar clients out there, Palringo and Fring being two examples that also include voice on some level! Getting EQO CE pre-installed on a carrier phone–assuming that can be pulled off–might give them a leg up, but I can’t say I’m optimistic.

What do you think about this?

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6 Comments

  1. Pingback by The thing about useful stuff is

    links from Technoratiunder pressure to find a buyer for the company but seemingly hasn’t been successful. I previously blogged about my use of EQO here. Related articles by Zemanta Nimbuzz’s All-in-One Mobile IM VoIP App Eqo Take Social Networks MobileWhy I Think EQO Is DoomedNimbuzz secures $15 million in second round EQO an Echo Of Their Former Self EQO May Be Done

  2. Comment by Markus Göbel's Tech News Comments

    Mobile software hace become so boring lately.

    EQO, Shozu, Zyb, Fring, Moblica, Ovi and others have added the same features to their cellphone software, so that they all do the same now. They give access to the “most popular instant messaging and social networks, allowing users to stay connected to friends and family” (quoting from EQO’s press release). The other companies do exactly the same!

    It boils down to always the same services: Facebook, Gmail, Twitter, Flickr, Picasa and some more. How boring! I liked these services more when they concentrated on their original purpose.

  3. Pingback by Phoneboy dumps on EQO’s new strategy — Alec Saunders SquawkBox

    [...] dishes on EQO this morning in a piece titled Why I Think EQO is Doomed.  I agree with him that the hardest mobile strategy of all involves convincing carriers to put [...]

  4. Pingback by EQO - A Word from a Colleague - Unified Communications

    Kramer auto Pingback[...] of gateway for making international calls.This morning, my good friend Phoneboy weighed in on EQO.Why I Think EQO Is Doomed Image via CrunchBase, source unknown I don’t like to prognosticate, but after reading the latest PR [...]

  5. Comment by JimAtJaxtr

    I think adoption of the service could be problematic because of the slowness of the operators. Obviously having tossed my hat in with jaxtr, you know that I’m a fan of stuff that doesn’t need downloading, which is one barrier to entry for consumers. =) However, I do like the concept of converging more communication tools in the handset. I’m just not sure that that methodology will work soon enough. We’ll see.

  6. Comment by PhoneBoy

    I have to agree that mobile software is pretty boring. I think Jaxtr has better chances than EQO does, quite honestly. Lowering barriers is a good thing. Software downloads are a barrier for the vast majority.

  7. Pingback by EQO an Echo Of Their Former Self

    [...] this is true, I guess my prognostications on EQO’s latest business plan were right, though it could just as easily be the global economic crisis. EQO might be able to carve out a [...]

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