While the fight for dominance in the over-the-top (OTT) app space rages on in the United States, other countries are seeing similar battles take place. In the U.S., mobile VoIP services like Skype (News - Alert) and Viber are constantly making headlines—often against each other.
Now, China is seeing a similar rivalry between the longstanding Phonebook service from WeChat, an incredibly popular app that offers users call-related services, and relative newcomer Yixin.
Yixin is an OTT messaging app that was introduced in August 2013 as a joint venture by China Telecom (News - Alert) and Internet provider NetEase. While the app was limited to text-based messages only, a recent announcement stated that version 3.0 of the app will include newly added free phone call services using VoIP technology.
It’s widely known that Chinese telecom operators have been at odds with WeChat, called Weixin in China, since the app entered the scene, as it draws a huge amount of user traffic away from traditional phone services. Users can communicate over Wi-Fi with WeChat, and—like most OTT apps—this means that they can avoid costly data plans by accessing the same communication tools, such as texting and photo sharing, through a free app that operates over the Internet.
However, there are some drawbacks to WeChat’s VoIP calling service, Phonebook, and this may give Yixin the window of opportunity it needs as it introduces its own VoIP feature. Both the caller and the recipient must already have WeChat's Phonebook app downloaded in order for the Phonebook call to go through, and Phonebook can only function in a Wi-Fi environment. While this means saving money for users, it also means users are limited to only calling other people with the same app, and they are restricted to only areas where there is Wi-Fi for making and receiving calls.
Yixin 3.0, on the other hand, will require only one party to have installed the app in order for the call to be placed. Much like Skype, Yixin users will be able to call regular outside cell phone or landline numbers through the telecom network.
Edited by Stefania Viscusi