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AOL, Time Warner Inc.'s Internet division, today unveiled new mobile phone services including an updated mobile portal using the company's mobile search technology. These are part of AOL's reinvention from its years as an Internet Service Provider to becoming a global Internet advertising and content company. Reinventing AOL's Business Model At the CTIA Wireless IT & Entertainment trade show in San Francisco today, AOL released their MyAOL and MyMobile services for mobile phones, in addition to the new AIM via SMS (Short Message Service) instant messaging product. After struggling to make the transition from an ISP which peaked at 27 million subscribers in 2002, into a free advertising supported portal with content, the new mobile services announced today are aimed at helping AOL compete with rivals Google, Yahoo and Microsoft. By expanding its mobile services AOL appears to be looking for growth in its advertising business and to keep existing customers happy. With recent layoffs numbering 2,000 on top of 450 last December, the changes within the company have appeared radical to some. CEO Randy Falco, who was known as "the conductor" during his tenure as second in command at NBC, sees the changes the company is going through as necessary. "It's hard for employees to grasp everything we're trying to do; it's hard on everyone," Falco said in a recent Washington Post article. "But it's necessary if there's going to be an AOL in the future," he said. AOL appears to be focusing on three primary areas in its new business model: - Publishing
- Web advertising
- Dial-up Internet access
Even as changes such as today's mobile feature rollout are taking place, speculation surrounding parent company Time Warner's plans for AOL abounds. During the second quarter of 2007 AOL received roughly 114 million unique visitors each month in the U.S. and 200 million worldwide, according to Scott Falconer, executive vice president of AOL Mobile. Several New Services Rolled Out At the heart of the new services is MyAOL mobile, a customizable mobile Web portal containing the same core features as offered in the company's desktop portal, centered around: - Sports
- Entertainment
- News
The new AOL MyMobile uses a single intuitive circular interface to select from among a suite of AOL services, including the MapQuest mapping system, the Moviefone theater finder and ticketing system, AOL's CityGuide, and the AOL Mail e-mail system. The service, currently available only for mobile phones that use the Windows Mobile operating system, will compete with Yahoo's similar Go Mobile interface. A test version for other wireless devices is in store later this quarter, according to Falcon. Among the new services announced today is a shopping feature which will allow users to view price tracking and retailer location information by entering a product name or barcode number. The new AIM via SMS service is an instant messaging service for cell phones allowing for free text messaging among those specifically chosen and allowed by users, with the only fees being regular text messaging charges. The service allows users to register their cell phone numbers and then friends can text to "AIMAIM", or 246246, to initiate the text messaging process. Unlike other downloadable mobile instant messaging applications, AOL via SMS is a stand alone system which won't force customers to choose from or view competing services such as Yahoo's Messenger and Microsoft's Live Messenger. Mobile customers who use Boost or Alltel will also be able to purchase an application from AOL allowing them to plot the locations of any of their AIM contacts who also use the application, through the use of the GPS system. Today is the formal debut of AOL's mobile portal, which has been available in beta test form since September. New Mobile Search Part of AOL Reinvention The new AOL mobile portal uses specialized search technology to show users only mobile-specific information in the results pages, such as Web sites optimized for mobile use, restaurant locations, and cell phone ring tones. Beginning last week the search engine results pages (SERPS, a term coined by Brett Tabke, founder and CEO of WebmasterWorld Inc.) on the AOL mobile portal began displaying paid listings alongside standard relevance-ranked entries, according to Falconer. For mobile users lacking the capability for full fledged Web browser access, AOL has improved its Wireless Application Protocol (WAP) enabled Web site, which will provide access to directions, weather information and 411 service. Falconer has commented on how different the mobile search market is from traditional search, where Google currently reigns supreme. "I would say it's still an open market. Google of course is the leader in online search but mobile search is fundamentally different," Falconer said in a recent article in InfoWorld. In May AOL acquired Third Screen Media Co., a mobile Web advertising company, for an undisclosed amount, and today the company announced the selection of New York-based Thumbplay for mobile entertainment content. Related Links:
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