Blabbelon announces free VoIP-based conferencing

Blabbelon has launched a free VoIP-based conferencing service that proved technically viable for more than 7,000 simultaneous same-conference users during a beta trial. Conference controls are included so session leaders can use, create and maintain their own private or public groups with text messages, e-mail notifications and privacy management. The technology features Skype's SILK codec so users can enjoy wideband voice quality while simultaneously using other online applications, since Skype's SILK codec was designed to use 50% less network bandwidth than other network-based codecs.

The push-to-talk systems is a Web-based service that requires no software downloads so it works on Windows, Macs, Internet Explorer, Firefox and Google Chrome. The company has addressed user privacy by allowing only invited and known users to join a conference; users maintain anonymity with aliases.

Blabbelon will initially target millions of online players of Massively Multiplayer Online (MMO) games such as World of Warcraft. To build its initial user base, the company will leverage several channels including conventional online marketing and presence at tradeshows (such as PAX and Blizzcon). The service has a variety of other "viral" marketing tools in place so users can invite others via e-mail, invite in-system via aliases and manage contacts. Future product plans call for user tools that would facilitate connectivity to social networking sites such as Facebook Connect.

Blabbelon's founder eschews banner ads as a source of revenue so management plans to generate revenue in the long term through a variety of consumer and business applications, such as e-commerce, online auctions and sales meetings/seminars.

Our observations: Although Blabbelon's initial VoIP-based conferencing service targets MMO gamers, its long-term success will depend on expanding into a revenue-producing business model -- especially if it is successful in gaining even a fraction of the millions of free users it now targets. We believe Blabbelon will eventually need to either give in to an advertising-based revenue model or go after enterprise-grade customers to generate operating revenues. If the company adds premium voice conferencing features such as operator assistance or call-recording, then traditional conferencing providers should be prepared to face a very network-efficient conferencing service competitor.

Steve Taylor is president of Distributed Networking Associates and publisher/editor-in-chief of Webtorials. Larry Hettick is a principal analyst at Current Analysis.