Wireless world hears call of voice recognition software

Cyntia Barrera Diaz

NEW YORK: The next generation of wireless infrastructure based on voice

recognition will bring more user-friendly applications to every-day devices like

cell phones and handheld computers on what many are already dubbing the next

Internet-like revolution.

"With all these devices there's one clear problem, there's no room for a

keyboard in them," said SpeechWorks International Inc., chief technology

officer and co-founder Michael Phillips, in a recent interview with Reuters.

SpeechWorks is a leading maker of voice recognition software.

"Speech as an output and input modality makes a lot of sense. The key is

to use speech in conjunction with other modalities at the same time: Speak and

get a map, for example," he said.

The spoken web



SpeechWorks, with funding from the US Defense Advanced Research Projects Agency
(DARPA), responsible for the development of the principles of the Internet, has

been working on the research of speech-based multi-modal access to content on

wireless devices over the last six months, Phillips said.

The company is currently working with Compaq Computer Corp., the No. 1 PC

maker, on how to extend the capabilities of its iPAQ pocket PC. SpeechWorks has

also joined efforts with Auvo Technologies and LOBBY7, both developers of

software for wireless Internet access.

"Before there's a widespread commercial adoption (of the new technology)

there may be commercial applications in more limited areas, like a telematics

device in a car," Phillips said referring to the integration of in-car

computer services with satellite navigation and mobile phone networks.

"This new generation of wireless devices is going to start to increase

the interest and demand for speech as an inter-phase," or communication

vehicle between the user and his or her PDA or cell phone, he added. SpeechWorks

is not alone in the race for developing the fastest and easiest-to-use

voice-operated technology that runs over Internet-protocol.

Putting voice everywhere



Rival Nuance Communications Inc. is also developing new applications that
will help companies get tighter control of internal and external communications,

as well as to reduce costs. Last week, Nuance announced an agreement with Cisco

Systems Inc. that will incorporate its software into the networking giant's

architecture for voice, video and integrated data (AVVID) products, expected to

launch in the second quarter of 2001.

AVVID provides companies with software for Internet telephony, and network

security control and management. "Think about the implications from the

enterprise perspective - dial by voice, access voice mail without having to

touchstone, have access to portal services," said Steve Ehrlich, Nuance's

vice president of marketing.

"The speech recognition market is where the Internet was maybe 12 years

ago," he said. "The growth potential is really significant: at the

minimum, what you are trying to do is to replace every touchstone system out

there."

Soft economy tones down impact



Despite the promising future of this sophisticated technology, analysts said it
may be a while before this has a strong impact on SpeechWorks and Nuance

results, given the US economic slowdown that is leading technology companies to

delay investment decisions.

"Over time, voice will get layered by almost everything that touches the

Internet," said, an analyst with CIBC World Markets, John Corcoran.

"But in this economic environment ... business is under pressure and the

picture is uncertain."

Nuance shares have recently been battered on the market. Losses were

particularly heavy two weeks ago after the Menlo Park, Calif-based company

warned of disappointing first-quarter earnings. On March 16, Nuance set a fresh

year-low, dragging SpeechWorks lower in its fall.

"If it's raining, everyone gets a little wet," Corcoran said.

"At the end of the day (voice-recognition wireless access) will gain

significant penetration. It's just that, with the economy slowing, that adoption

curve will take longer." SpeechWorks shares slipped 3/16, or 2.1 per cent,

to $8-13/16 on Tuesday, more than 90 per cent below its 52-week high of

$108-1/2. Nuance shares were off 43 cents, or 3.5 per cent, at $12.01, also more

than 90 per cent off its year high of $182.

(C) Reuters Limited 2001.