Facebook email: Latest strike to dominate communications?

Eden Zoller, Principal Analyst, Ovum

AUSTRALIA: If Facebook positions this as a full web email service it will put Google, Microsoft and Yahoo! on the defensive. It should also give telcos a lot to think about as Facebook is becoming an increasingly rich communication platform. All it needs to do now is put search into the equation.

An email service from Facebook makes a lot of sense. It has a huge base of 500 million users that already love to communicate and share, and Facebook is giving them richer ways to do this through virtual gifts, games, location and even voice thanks to the recent integration deal with Skype.

Adding email to the mix is a logical step and Facebook could tap into user data to provide an attractive, highly personalised service. You would also expect it to push mobile features given its big move in this direction.