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October 10, 2006

Portal-backed Wireless Voice Search to Reach 1.45 Billion Queries in 2010, According to The Kelsey Group

New report examines the anticipated disruption of the directory assistance market by the entrance of major search portals.

Princeton, NJ (October 10, 2006) -- A combination of factors—the expected introduction of wireless voice search products from the major search portals, population demographic shifts and continued declines in the number of wireline subscribers—will produce a significant disruption of the directory assistance market, according to The Kelsey Group. In the firm’s new report titled, “Wireless Voice Search: The Multi-Modal Revolution,” Kelsey Group analysts estimate that portal-backed voice search will reach 1.45 billion queries in 2010, representing 18 percent of total DA call volume in the U.S.

“We believe the wireless voice search market is poised for a major explosion in growth initiated by emerging free directory assistance players and catalyzed by the inevitable entry of at least one search portal by 2007,” said the report’s author, Matt Booth, Kelsey Group vice president and program director of Interactive Local Media. “When the cost to service a DA query drops below 10 cents, Internet pay-for-performance models will start generating a positive return. This will be a key transition point, driving growth in the voice search segment.”

Additional findings contained in the report include:

  • The U.S. DA industry will generate 6.3 billion information requests in 2006 across three distinct platforms: wireline, wireless and Voice over Internet Protocol, or VoIP. A fourth platform, free directory assistance, will add another 135 million DA calls.
  • During the forecast period, monthly free DA call volume will reach four times that of user-paid DA*.
  • The major search portals are expected to launch wireless voice search products by mid-2007.

Voice search is a key topic on the agenda at The Kelsey Group’s upcoming Interactive Local Media 2006 (ILM:06) conference, Nov. 29-Dec. 1, 2006, in Philadelphia, Pennsylvania. Two featured speaker presentations and one panel session will tackle the subject:

  • Directories and Voice Search — presented by Jean-Pascal Lion, vice president, marketing, Yellow Pages Group
  • Pay-per-Text: DA and Local Ad Revenue — presented by Seb Bishop, president, MIVA
  • Wireless Voice Search: Consumer Adoption Translates Into Seismic Market Shifts — panelists include George Garrick, CEO, Jingle Networks, Masoud Loghmani, CTO, LogicTree, and David Yoo, director, product marketing and strategy, Tellme Networks

ILM:06 is The Kelsey Group’s 11th conference devoted to digital media with a local focus. For more information about the conference, visit www.kelseygroup.com/ilm2006.

The “Wireless Voice Search: The Multi-Modal Revolution” report is available to Kelsey Group advisory services clients. Contact Steve Vasil at (905) 468-8786 or svasil@kelseygroup.com for more information on Kelsey Group advisory services.

About The Kelsey Group
The Kelsey Group is the leading provider of research, data and strategic analysis on directories, small-business advertising and online local media. Founded in 1986, the company has built a reputation as the premier analyst firm covering the directory publishing community and the emerging local search marketplace, providing advisory services (The Kelsey Report® and Interactive Local Media), publishing (Global Yellow Pages™ and Local Media Journal™), consulting (more than 300 individual assignments) and conferences (65 events).

* NOTE: This is consistent with current usage data.

For more information contact:

Eileen Pacheco
(781) 556-1026
eileen@tango-group.com

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