This is a transformative period for directory assistance (DA) service providers and callers alike. Call volumes are skewing toward mobile devices and competitive threats exist in the form of mobile Internet search, downloadable mapping applications and free DA alternatives. These competitive challenges raise strategic and tactical questions for mobile carriers and their service providers (about pricing and content) in the near term. The findings of a new Local Mobile Search consumer survey, sponsored by V-Enable, present a snapshot of mobile DA usage and of an industry very much in transition.

The market for voice biometrics-based authentication software is starting to mature. The technology has proven its efficacy and value as the basis of password reset applications for enterprise Help Desk, leading to tens of millions of dollars in recurring revenue. Yet the market will reach a positive inflection point as “customer-facing” deployments grow to support secure, phone-based access to financial services, e-government and electronic payments.

This report explores the evolution and transition from “traditional” wireless directory assistance (DA), where the revenue is supplied by consumers on a pay-per-use basis, to a “free,” potentially ad-supported model we’re calling speech-enabled mobile search (SEMS). In 2006, wireless carriers, device makers, mobile subscribers and advertisers combined to spend more than $4 billion on resources that used spoken words to extend the ability to search onto mobile devices. By 2010, that dollar value will exceed $7.5 billion.

Even with a potential FFIEC mandate for phone-based multifactor authentication on the horizon and the insidious cost of fraud continuing to rise, the question remains: Are voice biometrics ready for mass adoption? All directional indicators point to “Yes,” as does a growing roster of implementers and prospects. Speaker verification solutions have the potential to raise customer satisfaction while conforming to the strictures of “strong” authentication. A multitude of solutions providers are emerging to support two-factor authentication for telephone banking that remains cost-effective by leveraging existing CRM, Web services and security infrastructures.

Research findings based on a series of executive interviews coupled with a thorough literature review to identify “best practices” exhibited among providers of hosted or managed automated speech processing. Opus Research identifies what’s working now regarding real-world implementations focusing on the Five ‘Ps’ common to business analysis: Pricing, Promotion, Product, Partnerships and Personnel. In this report, we highlight techniques which correlate both with business success and customer satisfaction.