Demo08 demonstrates that traditional carriers are doomed

This year's Demo brought to light a telecommunications trend that must have the major carriers shaking in their boots. Simply put thanks to Web 2.0 and IP telephony, innovative startups are discovering they can create their own phone company and they don't really need the tradtional carriers to do it. In the late morning sessions of Demo08 this was demonstrated by two companies Toktumi and Ribbit. Toktumi gives

This year's Demo brought to light a telecommunications trend that must have the major carriers shaking in their boots.

Simply put thanks to Web 2.0 and IP telephony, innovative startups are discovering they can create their own phone company and they don't really need the tradtional carriers to do it.

In the late morning sessions of Demo08 this was demonstrated by two companies Toktumi and Ribbit.

Toktumi gives companies downloadable software tools that can be used with either a headset plugged into the PC or with an attached handset to the PC if that interface is more comfortable.

Once the software is downloaded a company is given a free phone number that includes voice mail, call forwarding, and voice conferencing among its many features.

If a company decides they like what they hear the free service is upgraded for $12.95 per month plus 2 cents per minutes.

When a call comes in users get the typical VoIP features such as called ID, call transfer, or an instant voice conference call setup.

The system also lets users dial by name or location search.

Ribbit, meanwhile, calls itself the first phone company to emerge from Silicon Valley. It creates Web telephony solutions that merge and integrate mobile phone communications with Web-based social networking.

A voiceware application offers what it calls a personal communications service, Ribit Amphibian.

Allowing the computer to answer a mobile phone call, once registered with Ribit users can answer their mobile phone from a Web page or any desktop.

The Web page acts as the telephone. This is a true Web 2.0 application with no downloads. It is simply an extension of the mobile phone number.

Unlike a mobile phone voice mail, Ribit also has speech to text to convert messages to text.

What is the most unusual part of the solution is Web 2.0 Caller ID.

While a user talks to a caller on the phone, the system goes out and searches for more information on the person, looking into social feeds and Web sites.

Ribit has an open API allowing developers to create applications on top of the platform.

At the conference the executives demonstrated an iPhone interface for phone calls and a chalkboard interface that allows users to chalk in a cell phone and then erase it after its use. Very cool.

Both Ribit and Tokumi are only the beginning but I think, to use a word from the pre-bubble bursting days, they threaten to in a very serious way disintermediate the giants of the telecommunications industry.

The carriers may fight back with partners by handing innovative services over to third parties but at the end of the day, applications like Ribit and Tokumi will demonstrate to users that they are not needed.