NZRO:Monday May 1, 5:03 pm Eastern Time
Free Voice Mail Service Offered
By BRUCE MEYERSON
AP Business Writer
NEW YORK (AP) -- From the people who introduced free computers and free Web access for those who don't mind some extra ads, now comes free voice mail for a home or business phone with the same tradeoff.
EVoice, which is being rolled out nationwide on Tuesday, joins a crowded field of ``unified messaging services'' that can direct phone calls, e-mail and faxes to a single in-box. Users pick up messages by dialing in with a phone or logging on to a Web site, where voice mail is delivered as an e-mail with an audio attachment.
The new service from eVoice distinguishes itself on the voice mail side as the first that doesn't requireusers to give out a separate phone number for would-be callers to leave a message.
Instead, calls to an eVoice user's existing phone number that go unanswered are forwarded directly to voice mail. Local phone companies typically sell that service for $8 a month to consumers and more than $10 a month for business lines.
Users also save money because eVoice and rivals such as Onebox.com and uReach.com provide a toll-free number to pick up messages, while most phone companies charge for a local call.
The catch is that each time eVoice users call in for their messages, they'll first hear a single advertisement lasting between five and 15 seconds.
If the ad-based strategy sounds familiar, it's worth noting that one of eVoice's backers is idealab!, the same company that helped launch NetZero (NasdaqNM:NZRO - news), the free Internet service with 3 million users, and Free-PC.com, an ill-fated venture that provided a free desktop computer and Internet link.
In both cases, users agreed to let NetZero and FreePC commandeer a small portion of their computer screens to show a stream of ads whenever they were online.
Despite a strong start, it remains to be seen whether NetZero can live by ads alone. A recent investment by Qualcomm, a wireless technology company that sees value in NetZero's established user base, suggests that ad revenues may not be enough.
Free-PC, meanwhile, was acquired in January by the computer maker eMachines, which pulled the plug on the freebies.
But while it's obvious that most people would rather avoid ads altogether, eVoice may prove less intrusive because the ads aren't continuous, analysts said. And on the flip side, eVoice may be a more effective marketing venue because the audience consists of people who are already listening closely to hear their voice mail.
``Playing ads while listening to voice mail is new. You get a very focused, captive audience, so it's opening up a new, premium advertising opportunity,'' said Mark Plakias, an industry analyst for The Kelsey Group, a consulting firm based in Princeton, N.J.
But, he added, ``Consumers do not have a lot of experience listening to advertisements over the phone, so one of the key things to watch for is whether there is fatigue over time with listening to audio ads.'' And while consumers may see the ads as a worthy tradeoff for free service, ``We think there are equally important segments of the market who prize time over saving money, and will pay for an advertising-free solution.''
Actually, borrowing another page from the Internet playbook, eVoice plans to offer a no-ads option for a few dollars a month, as well as other add-on services like news updates, generating fees that would lighten the company's dependence on ads.
``With free services, advertising just serves as a means to recoup some of costs. The real value is to acquire customerswho you can use to bring in other partners (selling other services) to generate additional revenues,'' said John Cha, an industry analyst at Frost and Sullivan in Mountain View, Calif.
Also, despite the cost of providing toll-free service, which has dropped considerably in recent years, eVoice hopes its users will call several times a day to generate more ad revenues.
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Qualcomm Inc (NasdaqNM:QCOM - news)
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