WebRTC Solutions Industry News

[June 22, 2005]

CEO Says Google Won't Compete With PayPal

By MICHAEL LIEDTKE
AP Business Writer

SAN FRANCISCO (AP) -- Google Inc. CEO Eric Schmidt on Tuesday denied recent media and analyst reports that the online search engine leader is gearing up to compete directly with eBay Inc.'s pioneering PayPal service, although he acknowledged some kind of electronic payment product is in the works.

Although he declined to provide any details about the project, Schmidt made it clear it won't trespass on PayPal's turf.

"We do not intend to offer a person-to-person, stored-value payments system," Schmidt said during an interview with The Associated Press.

That description fits PayPal, a 6-year-old service that creates "digital cash" by accepting credit card payments from its users and then delivering the payments to a designated recipient. The recipient then can either get real cash or leave all or part of the balance in a PayPal account for future transactions.

As e-commerce has blossomed, PayPal has thrived, growing from 24 test users in 1999 to 72 million accountholders through March. Looking to profit from the fees that PayPal collects from completing online transactions, San Jose-based eBay bought the service for $1.3 billion in 2002.

The Internet industry began buzzing about the possibility of Google competing with PayPal after the subject surfaced last week during an e-commerce conference hosted by Piper Jaffray. The Wall Street Journal subsequently reported Google hoped to roll out a rival payment service later this year, quoting people familiar with the company's plans.

Other media outlets, including The Associated Press, followed up with similar stories and stock market analysts released reports mulling the possible financial consequences of a showdown between Google and eBay, one of the search engine's biggest advertisers.

Google consistently declined comment until Schmidt tried to set the record straight Tuesday.

The Mountain View-based company's recent incorporation of a subsidiary called Google Payment Corp. fed the perception that a battle with PayPal loomed. But Schmidt indicated that subsidiary is working on something that won't stray far from its search engine.

"The payment services we are working on are a natural evolution of Google's existing online products and advertising programs which today connect millions of consumers and advertisers," Schmidt said. He declined to elaborate.

American Technology Research analyst David Edwards believes Google's payment product initially will be tied to its shopping comparison service, Froogle. The company also plans to let people view online videos stored in an index, prompting some other observers to predict the service will be designed to sell content found through its search engine.

The speculation about Google's plans have raised investor fears that PayPal's growth might taper off, squeezing eBay's profits. EBay shares have fallen by 3 percent so far this week, declining 34 cents Tuesday to close at $36.90 on the Nasdaq Stock Market.

At the same time, investors have been hoping Google will develop another source of revenue besides online advertising, which accounted for almost all the company's $369 million profit during the first three months of this year. Google shares are up 2.7 percent so far this week, gaining $1.14 Tuesday to close at $287.84 on the Nasdaq.

___

On The Net:

http://www.google.com

http://www.ebay.com

[ Back To WebRTC Solutions's Homepage ]

FOLLOW US

Featured Podcasts

Oracle in Enterprise Communications

Most in the industry have heard of the acquisition of Acme Packet by Oracle. What you may not know is that Oracle has a number of telecommunications products including a UC suite, WebRTC Session Controller, and Operations monitoring tools. Oracle is pursuing both the enterprise and service provider.

Featured Whitepapers

WebRTC Security Concerns

This whitepaper covers two of the most relevant topics in communications industry today: WebRTC and security. We will introduce the problem of security in WebRTC including those traditional VoIP attacks that are going to be present in WebRTC services. Later we will mention ad-hoc WebRTC attacks and protection mechanisms, to close with an overview of identity management solutions.

Migrating Real Time Communications Services to the Web

In the Internet age, businesses that own fixed and mobile communication networks, including traditional Communications Service Providers (CSPs) of all kinds, are being challenged with some tough questions: How do we stay relevant to our customers?

Delivering Enterprise-Class Communications with WebRTC

WebRTC is an emerging industry standard for enabling Web browsers with real-time communications capabilities. It enables enterprises to enhance Web sites, empower BYOD users, and improve video collaboration and on-line meetings, to name but a few examples.

WebRTC Report Extract Reprint

This document examines the growing important of WebRTC, both generally and for telecom service providers. It considers the expanding range of use-cases, the multiple layers of interoperability likely to be desired by telcos, and some implications in terms of network integration and mobility.

WEBRTC SOLUTIONS PAPERS, SLIDES, COLLATERAL

Robust Enterprise Grade WebRTC Systems and Services


The emerging WebRTC standard has become one of the industry's hottest topics – and with good reason. Being able to "communications enable the web" has Communications Service Providers as well as Enterprises busily making plans for deployment. But, as these plans unfold, reality is starting to intrude on those plans. Our expectations of telephony services are much higher than web browsing. We expect the phone to connect instantly, operate with minimal disruption, and work seamless across any network, anywhere, at any time. There is also an understanding that phone service is inherently secure. With WebRTC, the expectation is for these applications to behave in the same manner.

This session looks at the user experience and expectations of a WebRTC Enterprise service. It will also cover how a WebRTC enterprise handles security, reliability, and interoperability within browsers and networks.

ORACLE COMMUNICATIONS WEBRTC SESSION CONTROLLER

The Oracle Communications WebRTC Session Controller enables communications service providers (CSPs) and enterprises to offer WebRTC services – from virtually any device, across virtually any network – with carrier-grade reliability and security.

Sales Presentation: Oracle Communications WebRTC Session Controller

Agenda:
- WebRTC Market and Opportunities
- WebRTC Challenges
- Oracle Communication WebRTC Session   Controller
- Summary

ORACLE COMMUNICATIONS WEBRTC SESSION CONTROLLER SOLUTION

Communication Service Provider (CSP) voice service revenues continue to face pressure due to shifts in communication preferences and competition from non-traditional service providers. Voice communications are now often embedded into applications outside the domain of traditional telephony voice usage. CSPs have been challenged to effectively leverage and monetize new web-oriented communications technologies.