Many people were wondering during the last two years how the Israeli mobile VoIP company Fringland Ltd. wants to make any money. Their versatile software works on virtually every platform and supports more than 1.000 mobile handsets. I heard that 200.000 new users sign up every month to Fring, as well as 80 companies which want to become a SIP affiliate. More than 500 SIP companies are already using the Israeli software as an easy to deploy solution for mobile VoIP, by sending a preconfigured Fring to their users' handsets or telling their customers how to use it. Fring invested heavily in software development and has to channel the other 500 companies' traffic over its own servers. Every voice connection goes first from the cellphone to Fring's servers, no matter if it's on Skype, SIP or Google Talk. Fring could take its share from the other companies' earnings, but hey do it for free. Also there is no paid version of Fring. All these business ideas are still in the cloud.

So how does Fring want to make money?

The cell phone multi messenger, which also serves perfectly for nearly free VoIP calls over 3G, should soon be sponsored by advertising. At the OSiM World conference in Berlin I saw an unreleased software version with banner ads for McDonald's in Fring's chat window. In a former occassion I could already see advertising by Gillette. The Israeli company with $20 million in venture capital seems to finally care now for revenue streams. Although CEO Avi Shechter had told me in February in an interview at Barcelona's Mobile World Congress that the entire year of 2008 would be dedicated exclusively to software development and revenues would be irrelevant. "The McDonald's banner ads are just a demonstration", said Fring's cofounder Boaz Zilberman when we met in Berlin. So until now Fring makes no money from advertising but is proving the concept.


One problem is, says Boaz, that mobile advertising is not very common yet. The advertisers still don't understand it and therefore employ only small budgets. But these small budgets would be eaten up immediately on the millions of daily Fring messages. That's why the company is going for bigger clients and advertising networks like Doubleclick or others. Context sensitive advertising like at Google Mail is not on the agenda. "We would have to read every chat message", says Boaz. "But we don't want that because it would hurt our users' trust." The business model of another Israeli born company seems creepy: Pudding Media is even eavesdropping their users' conversations to deliver targeted advertising at the computer screen during the phone calls.

Fring is now developing from a sole software for messaging and VoIP to an universal contact solution, which even keeps track of your buddies' location by GPS. The latest version 3.36.6, which you can only download from Fring's developer website, has already joined the menus for messengers and social networks. The boundaries between these categories are every time more blurry, because for instance Facebook is also an instant messenger now. In future software versions, every person should appear only once in Fring's contact list. Until now some people appear twofold, threefold or even more times - because they are connected to Skype, MSN, ICQ or other services at the same time. One click at the buddy's icon will start a chat, no matter which messenger to other person is using, which can always be escalated into a Fring phone call via VoIP.

Labels: Fring, Google Talk, ICQ, Mobile VoIP, MSN messenger, Pudding Media, SIP, Skype, VoIP, VoIPo3G

                                      

Just a fast news break: O2 in Germany is not blocking the phone numbers of Rebtel anymore. Their blog says "Victory! Rebtel is officially back in town and we’re planning on staying for a loooong time without any unexpected interruptions." I just heard the good news from my contacts and already did some Rebtel calls with a German SIM card from O2. Rebtel's CEO Hjalmar Winbladh is very happy that the pressure from thousands of Rebtel users made this breakthrough possible. He had had asked to write emails to the boss of O2 in Germany, Mr. Jaime Smith Basterra (jaime.smith@o2.com) or call the O2 support desk on 0049 179 55 22 2. Hjalmar told me in an email:

"We are very grateful for the overwhelming support we have received from our users. They proved that together we can make a difference. O2 would not have changed their mind without our users mailing, visiting and calling O2's CEO and customer support. Thank you all Rebtel friend! People can now stay in touch their loved ones again and afford to pay for it. We hope this has shown other operators that people do not accept being told who they can call and if they can use VOIP-services or not. We will continue to support our users and offer some of the world's lowest rates and best quality calling."

It cannot be overheard: Rebtel is happy, but they also send a message to incumbent telco operators to never try that again. Actually not only the Swedish company was affected. There are still more callthrough services and chatlines which see their numbers constrained by O2 and E-Plus in Germany. Their numbers are blocked or "limited", which is an especially nasty trick that user handytim explains in the web forum Telefon-Treff.de: "The numbers are not blocked, only limited. In my test I could only establish 1 connection out of 100 trials". While blocking of certain phone numbers is illegal for mobile operators, limiting seems to allowed to save their bandwith. One has to ask what's the difference to a blockade if really one of 100 calls comes through.

The affected companies are listed in a Google Spreadsheet which forum user Vesko keeps up to date: Budgetmobil, DialNow, Calleasy, voipwise.com, nonoh.net, VoipBusterPro, yipl.de, Chat House, Bluerate, Speed-Chat, partyknack.de, 030chat.de and Phonecaster. As you might notice there are several Betamax services among them. If the company wasn't so reluctant to talk to its users, Betamax could make a similar call for help.

Labels: Betamax, Callthrough, Mobile VoIP, O2, Rebtel, VoIP

                                      

A commentator to my last post "Why Truphone and Gizmo5 applaud that Nokia turns it's back on mobile VoIP" doubts my argumentation by asking:

I thought Truphone is based on the built-in SIP client? Then it would seem unlikely that Truphone applauds Nokia dropping the mobile VoIP stack from certain models.

My answer is the following:

Yes, Truphone until now works on top of the built-in SIP client. But the Truphone software develops more and more into a standalone application: with the inclusion of SMS, callthrough where no Wifi is available, presence information and so forth. They aren't afraid of building their own SIP app since it ties the customer even more to them. Therefore Gigaom wrote:

Truphone isn’t waiting around for Nokia to do something. A company spokesman told us: “From Truphone’s perspective Nokia has removed the VoIP client from all the N-Series phones for the planned future. We are putting in a replacement client functionality so that existing customers are not orphaned.”

Don't forget that Truphone has a very high pricing for Wifi calls! Their software is convenient to install, but many other VoIP companies are three times cheaper. That's why they would be very happy to be your only mobile VoIP provider. Vyke already launched their own client, as you can read here, and Gizmo5's CEO Michael Robertson officially applauded Nokia's move in a FierceVoIP article.

The only losers are the cellphone users, since these 3rd party apps are much more difficult to use than the native SIP client. Read this insightful comment, posted at Phoneyboy's blog:

"I’m using VOIP on Nokia’s phone via my own asterisk server. How can Nokia expect me to develop my own Internet telephony application so that I can continue to use it? There are simply thousands of small users out there for whom this is beyond what they could do. This will leave them out in cold.

And further comment. Any third party application will have hard time to match the comfort of integrated symbian UI, where normal and internet calls are integrated together and one push of a button decides which one to make. Just compare this with Fring whose UI is just terrible."

We tinkerers who use Asterisk, Voxalot, Voipstunt, PBXes and Iptel.org are out of the game for the new Nseries devices. I am afraid that the Nokia E71 is the last cool device for a VoIP aficionado like me. Hopefully the Android devices will have more to give. Phoneboy calls us, who use 10 VoIP providers on our Nokia devices, a "minority". Nevertheless he "understands the frustration". Thank you!

But still I think that he is wrong, or maybe just blue-eyed, when he says: "It sounds like the problem is only limited to these two handsets". The problem affects all Symbian Series 60 3rd generation Feature Pack 2 (S60 3.2)! This means: All new handsets from now on are affected. Nokia's VoIP isn't revolutionary disruptive anymore, but has changed to a big boys' only business.

P. D.: I have just found a new Gigaom article about the topic: "Nokia Clarifies Its Future N-Series VoIP Plans". Thanks for quoting my thoughts.

Labels: Asterisk, Callthrough, Gizmo5, Mobile VoIP, Nokia, PBXes, SIP, SMS, Symbian, Truphone, VoIP, Voxalot, Vyke

                                      

Om Malik has asked "Is Nokia Turning Its Back on MobileVoIP?", pinpointing to the fact that the new Nseries devices N78 and N96 lack an own SIP client, while Nokia before embraced mobile VoIP on it's Nseries and Eseries devices. Charlie Schick of Nokia Conversations says the report of the death of VoIP has been "grossly exaggerated" and people like Phoneboy, Gizmo5's Michael Robertson or the company Truphone are buying that argumentation, although it has its flaws. Truphone, Gizmo5 and Fring must have realized immediately that they are winning from Nokia's move. That's why they are holding back their horses.

Nokia says that it's no problem that they have removed the native SIP client from their latest handsets, since companies can develop their own VoIP software based on great APIs. But it's not as easy as Nokia is trying to say: There are hundreds or thousands of companies without an own software for mobile VoIP. They just rely on the SIP standard. In Germany it's GMX, 1&1, Sipgate and the several Betamax daughters. Together they have millions of customers, I am one of them. These people cannot use VoIP on the new Nokia phones. I have always ten or more VoIP providers installed on my Nokia E61i's SIP client. This way I can always use the cheapest route and leverage free on net calls.

It would be nasty if had to install ten or more pieces of software for that purpose. It's already annoying that Truphone requires a special software because they don't give me my SIP password. That's a perversion of the idea of standards. If I need a special software for every company's offer why is there a standard called SIP?

So as a VoIP tinkerer I have to stay with the older Nokia devices, or at most I can change to the E71. But Nokia's new Symbian release, S60 3.2, is no option for me - as long as it has no own SIP client. It's obvious why companies like Fring, Truphone, Gizmo5, Vyke and others are applauding the Nokia move. It ties their customer to them and makes it more difficult to use other companies' offers. With a native SIP client, which allows to be connected to several different SIP services at the same time, I can be promiscuous. Even the most disruptive mobile VoIP companies prefer to lock me in their walled garden, but I don't want that.

I still believe that pressure from mobile operators has caused this move of Nokia. HSDPA and HSUPA have brought great bandwith to the latest handsets, enough to use it for Voice over 3G. With the right voice codec you can talk about 15 minutes and use only 1 Megabyte of data. Filtering for VoIP packets slows down the mobile data networks and therefore it's not very common. If you combine that with the right VoIP provider, like Betamax, this means free mobile phone calls to more than 30 countries. Only data prices apply.

Labels: Betamax, free phone calls, Fring, Gizmo5, Mobile VoIP, Nokia, Truphone, VoIP, VoIPo3G, Vyke