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Sunday, 04/01/2001 8:34:48 AM

Sunday, April 01, 2001 8:34:48 AM

Post# of 93814
Wireless Hears Call of Voice Recognition Software

By Cyntia Barrera Diaz
http://dailynews.yahoo.com/h/nm/20010331/tc/voicerecognition_dc_2.html

NEW YORK (Reuters) - Buying or dumping stocks while driving to a ski resort? Looking for a map to guide you to the nearest diner on your first visit to a new city? With just one voice command on your cellphone?

The next generation of wireless infrastructure based on voice recognition will bring more user-friendly applications to every-day devices like cellphones and handheld computers on what many are already dubbing the next Internet-like revolution.

``All these devices (and) there's one clear problem: There's no room for a keyboard in them,'' said Michael Phillips, chief technology officer and co-founder of SpeechWorks International Inc. (NasdaqNM:SPWX - news), a leading maker of voice-recognition software, in a recent interview with Reuters.

``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 U.S. 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 multimodal access to content on wireless devices over the last six months, Phillips said.

The company is currently working with Compaq Computer Corp. (NYSE:CPQ - news), 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 interphase,'' or communication vehicle between the user and his or her PDA or cellphone, 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. (NasdaqNM:NUAN - news) 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. (NasdaqNM:CSCO - news) that will incorporate its software into the networking giant's AVVID products, expected to launch in the second quarter of 2001.

AVVID -- short for architecture for voice, video and integrated data -- 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 U.S. 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 John Corcoran, an analyst with CIBC World Markets. ``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.''





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