Great contacts and exclusive information from the Mobile World Congress 2008

The Mobile World Congress (MWC) 2008 in Barcelona was a great event. Thanks to Andy Abramson and the Nokia Blog relations program I met a lot of interesting fellow bloggers. My pal Alec Saunders was so nice to make a listing of the people we met:

Some of the great people and bloggers I bumped into at the show include Stowe Boyd, Darla Mack, Jonathan Greene, Matt Miller, Alan Reiter, Oliver Starr, Bill Tam, Lubna Dajani (get that blog going, Lubna!), Esme Vos, Martin Geddes, Dean Bubley, Xen Mendelsohn, Martyn Davies, Jonathan Zar, Loren Feldman (and it was me who mistook him for Ze Frank), Markus Goebel, Jeb Brilliant, James Body, Florian Seroussi, Daniel Appelquist and of course Pat Phelan. You can read more about the show on any of their blogs.

I would like to thank especially Martyn Davies from the VOIPSA blog. He gave me great hints to prepare my interview with Fring's CEO Avi Shechter - who was so kind to say that he is a regular reader of this blog, although he doesn't always share my opinion. Also the Cellity founders Sarik Weber and Tim von Törne outed themselves as regular followers. And Michael Poppler, European region sales manager of VoIP solution provider GIPS, even jumped out of his booth when he recognized my name on the MWC badge, saying that he always wanted to get to know me.

Thank you very much for this feedback!

It was the first time in a long period that I left my cave in Berlin from where I maintain contact to the IT industry largely by internet and phone. The next opportunity to meet me is a the CeBIT trade fair in Hannover. Needless to say that I brought lots of exclusive information back home from Barcelona. I will cover it in my next blog entries. Great changes are coming and some of the most pestering problems in mobile VoIP will be solved soon. (Not only that Packet8 made their MobileTalk a free product as I always advocated.) Some companies have have discovered new business models or changed their technology, but didn't announce it yet.

Most fun was my interview with Qik's co-founder Bhaskar Roy. His company is so hot that one venture capitalist even asked me to convince Bhaskar that he wants to do Qik's second round of funding. Qik should turn down all other offers. That's certainly a great way of living: Being haunted by rich people who compete to give you their money. But Qik deserves it. You just switch on the Nokia N95 and yet your face is broadcasted on the internet. Just look at the morons on Qik's start page who still don't realize that they are online and everyone can see them! My tip from Bhaskar: Dial zero and your broadcast switches immediately into privacy mode. Too sad that my Qik interview with Cellity just disappeared. Although Bhaskar had said that I could do it in offline mode and it would be uploaded automatically from the phone the next time I connected to Qik over Wifi.

Israeli mobile VoIP software miracle automatically connects the cheapest way

Last year I was nagging that "Packet8 MobileTalk could be done much better", and I was right. I could learn that now when the Israeli company Mobilemax installed for me on a cellphone the underlying software which powers Packet8's MobileTalk. It is a real mobile VoIP wonder weapon which I covered in an article for Areamobile. Companies like Truphone, Gizmo5, Wifimobile and Tpad should make its features a part of their mobile services to make them work also outside of the spare Wifi areas.

Internet telephony could be a killer application for mobile phones. But it has it quirks, shows a series of articles I wrote. In most cases you need at least a cell phone which can open mobile websites. It let's you do a mobile callback with VoIP providers like Jajah or Voxalot. After entering the phone numbers of the caller and the callee on a mobile website, a server rings up both and connects them over the internet. Of course this also costs double, but for international calls it's still cheaper than the own cell phone provider's prices. Only Wifi cell phone calls are less expensive. They only cost a few cents per minutes and often they are free. But Wifi isn't always available.

Mobilemax thus developed a software which automatically sends mobile phone calls the less expensive way over the internet whenever that's cheaper than normal calls. No need to open mobile websites on the phone or to trigger callbacks by SMS or instant messaging. The software simply sits unobtrusively in the background and automatically determines the way in which the call is connected. The user only needs to enter the number.

Establishing a call with VoIP software from Mobilemax

The program works on about 500 phones with Palm, BlackBerry, Symbian or Windows Mobile operating systems and last month it has been deployed for the first time by the US VoIP provider Packet8. Once a number has a foreign area code, the software starts to act and connects via a landline number to the server by Packet8. The server connects the telephone conversation with the other party over the VoIP network. Calls from the United States to Asia or Europe cost only a 2 to 5 US cents per minute more than the price of a local call. The American mobile operators normally charge up to three dollar minute. German companies like Running Mobile or Cellity offer similar solutions.

But the Israeli software has much more functions which the competitors lack and also Packet8 doesn't use. The program could also automatically decide to connect a phone call as a callback or over Wifi. Even VoIP calls over 3G will soon be possible, although all German mobile network operators seem to block them now I realized in some self-experiments. Mobilemax' software is a real miracle weapon for mobile VoIP and the handling is particularly pleasant, because no extra buttons have to be pressed. The software even senses in which country the user is and automatically chooses a local number for callthrough or callback. What a pity that consumers cannot have it. Mobilemax distributes the software only to companies. "We don't see ourselves providing the underlying service of the application and compete with our customers", said Mobilemax' Director of Business Development, Perry Nalevka, to me in an interview. The Packet8 customers pay $10 per month only to use it. In addition they get the VoIP telephone minutes billed.

Configuration also allows other VoIP flavours

Other companies want to follow the same business model, Nalevka said, which started as a one-touch-dialing solution for calling card users and roamers who had to use tens of access numbers, PINs and dial flows to make a call without being ripped off by the mobile operators. Six different service providers worldwide and several IPBX and enterprise mobility providers are now testing the software. So far several tens of thousands of licenses purchased.


Other companies who use it:

• Reliance - Indian provider launching in 8 countries soon.
• Gamma Telecom, UK - launched the Crosslink service targeting SMBs and enterprise users
• Tellink, Belgium - callback provider for SMBs and roamers
• Tel3, Miami FL - residential provider
• Boomering - SMB mobility & callback solutions for roamers
  

Today it supports the following configurations:

• Callthrough with PIN or PINless (CLI based).
• Roaming location based callthrough with multiple access numbers automatically selects the relevant access number according to the user's location.
• Seamless callback triggered by: DID, USSD, SMS, IP. The application triggers the callback, answers the incoming call and if needed sends the destination number.
• Dial around replacing prefixes in the dialed number (1010).
  

Further developments:

• Support additional phone models as they are released.
• Add new routes to seamlessly divert calls to: VoWIFI, Vo3G (to SIP or termination).
• Adding in-call Mobility features.

You can find more information about the software in Rich Tehrani's interview with Perry Nalevka: "MobileMax: Bullish on Fixed Mobile Convergence" (December 31, 2007).

oneFone's mobile VoIP is slick, but wiFon's seamless handover is even cooler

In the last days I played with Wifimobile's oneFone VoIP client for Nokia's E- and N-Series and liked it very much. Business Development Manager John O'Prey had invited me for a free trial.

The oneFone client is so easy to use that at first I did everything wrong. You just have to start the program and then you should forget it until your next call. Instead I pushed many buttons, because I didn't know how to dial a number. The program's contact list contained only four SIP addresses, which it had harvested from my address book. But how to dial other numbers? I didn't find a button and searched so much that that the program hung itself up.

I should have read the manual! In an email John explained to me:

To dial a landline minimise oneFone to the background and dial as normal. You can also dial directly from your contact list. Let oneFone run in the background and use your phone as you normally would.

And it really works like this. You start the program once and then let it disappear by hitting the "Back" button. Afterwards you can forget it. When you dial a number, in the same way as you always do on your mobile phone, the program kicks in and establishes the call over VoIP. Before the call really starts a voice says "Thank you for using Wifimobile". That's to indicate that this call will not appear on your normal phone bill but goes for free over Wifi. Unless of course that you make the oneFone call over 3G. I did that once and it cost me only 3 Cents of a Euro. The quality was acceptable, it nearly sounded like a normal GSM phone call. But taking into account the high data costs in Europe I recommend to use only the "Auto WLAN" mode which prevents VoIP calls over 3G.

The entire oneFone application seems like a least cost router for mobile phones. Comparable to Cellity the program kicks in only if it can connect the call cheaper than your cell phone contract. The website explains it:

Only £15.99 €11.99 £7.99 Per Month

The oneFone service from WiFiMobile allows you to make unlimited* free calls to landlines in over 40 countries as well as mobile phones in certain countries including the USA. For a list of countries that you can call for free click here.

All calls to landline and mobile numbers to countries not listed here are automatically routed through your normal GSM provider. This allows us to guarantee that customers are never charged more than the set monthly line rental.

*The unlimited free calls are subject to a fair usage policy.

The list of free countries covers probably every destination you need. I was happy to see that even Peru is free. What I really like about oneFone is how inobstrusive it is. You just don't notice the program anymore, once you have it enabled. They don't even give you a login to their website for a call history list. Calls go over oneFone free of charge, covered by the flatrate tariff, or they go over GSM and appear on your cell phone bill. So why keep track of them.

Also you don't need to give a new phone number to your pals, like you have to do as a Truphone user, because oneFone uses your normal cell phone number as caller ID when it establishes the call. So the company can directly work on an international scale, other than Truphone which has only UK or US numbers and still has to apply with the regulators for numbers from other countries.

Both companies give Wifi calls between their members for free. But oneFone's presence application, where you can see if your friends are online for free on net calls, really works. Other than Truphone which recently had to disable the presence feature in their client because "it was hammering the servers and becoming less reliable as more people upgraded and began to use it".

John O'Prey told me some more points which "distinguish oneFone not just from Truphone, but all providers who use the Nokia client":

• oneFone is a self developed and wholly owned stand alone VoIP client and Works in all Nokia E and N Series phones
  
• Presence is fully supported and operational
  
• Support for automatic roaming between WLAN and 3G
  
• Automatic selection of best Internet Access Point
  
• oneFone works in far more NATed environments than the Nokia client
  
• Adhoc conference support coming in a few days

By not relying on Nokia's own VoIP client they circumvent the mobile incumbents' agreement to lock down alternative VoIP providers. A smart move.

But would I really recommend oneFone? Not necessarily.

£15.99 / €11.99 / £7.99 per Month is quite a lot of money for Wifi phone calls from a mobile, given the fact that Truphone gives nearly the same countries for free until the end of 2007. And with VoIP from Betamax, which you can also install on your Nokia E- or N-Series, you get 120 days of free calls for just €10. My personal costs for mobile and fixed line telephony are together not more than €10 per month, although I am a busy journalist with family in Peru. So people have to think good if they really need Wifimobile's offer. After all it's a normal VoIP flatrate and, e. g., with the bellshare flat you get more or less the same for just €5,99.

Also I think that the proprietary oneFone client could do much more. Look at what they do at Eteleon! Their wiFon client allows a seamless handover between Wifi VoIP calls and GSM. During a phone call it continuously checks the strength of the Wifi signal. If it drops under a certain point the software tells the Eteleon server to continue the call over GSM. The German webzine Teltarif has tested the handover and was quite pleased. wiFon even gives a free fixed line number from your local area, so that also your friends can save money when they call you on your mobile.

Cellity gets funding from Skype's seed investor

In February Tim von Törne, VP Business Development of Cellity and former Germany head of Skype, told me that they were hoping for venture capital for an international rollout.

Cellity's business is a least cost router for mobile phones which allows mobile phone users to reduce their local call costs by 60 per cent and international call costs by up to 90 per cent. Before every mobile phone call a Java client checks in the background whether the call can be connected for a cheaper price trough Cellity's 0800 or local numbers. A good idea for low techies. I personally don't need it since I have a calltrough installed on my own ATA.

Now Cellity finally got their money, says the lates press release: Skype's seed investort Mangrove Capital Partners has invested in a funding round. Mangrove, which is based in Luxembourg, has participated alongside German VC Neuhaus Partners in the company.

Unfortunately Cellity seems to work quite crappy, tells Germany's savviest mobile phone nerd Henning Gajek in his latest blog post at Xonio.

Why does nobody admit that his company is a „minute stealer“?

I really like the term „minute stealer“ that Andy Abramson and Om Malik brought up. It explains in a very short way that VoIP companies like Jajah, Rebtel, Cellity, Truphone and others take shares of the telephony market from the well established, often monopoly like, old phone companies and make calls cheaper by tunneling them trough the internet. In the last months we should also speak of „mobile minute stealers“ since they do it also with cell phone calls that are even more expensive.

This is a great opportunity and so I wonder why nearly none of the new companies wants to call themselves a „minute stealer“. Are they afraid of waking the sleeping enemy?

Last week I researched for an article in a German economy magazine and talked to many important people in this market: Ari Virtanen (Vice President Convergence Products, Multimedia of Nokia), Eric Lagier (Head of Mobile Business Development at Skype), Roman Scharf (CEO of Jajah), Alexander Straub (co-founder of Truphone), Hjalmar Windbladh (CEO of Rebtel), Tim von Törne (co-founder of Cellity) and also to analysts, users and cell phone companies. Most of them say that they are no „minute stealers“ and no danger to established cell phone companies.

„A survey showed that 55 per cent of all Skype users never made a international mobile phone call“, told Eric Lagier from Skype. „So Skype is no competition to the mobile operators. If theses people now use Skype mobile to contact their friends abroad this does not take away mobile minutes from the operator.“ He refered to Skype on Wifi PDAs and Skype on mobile phones which „3“ offers together with an unlimited data deal in the UK and soon in Sweden and Denmark.

A similar contained comment came from Tim von Törne, co-founder of Cellity, which tunnels cell phone calls for small prices trough fixed phone lines: „We don't steal minutes, we only lower the prices.“ The rest of his argumentation was nearly the same like Roman Scharf's from Jajah: „With Jajah the mobile operator does not loose his client. He only does some international mobile calls with us but the operator can still bill him the local calls and the base fee.“ Then he passes the bill to others: „The real threat are Wifi phones because they bypass the mobile operators at all.“

Nicely put. So Nokia, which is the actual market leader for Wifi/GSM mobile phones, must be in trouble with Vodafone, T-Mobile, O2 and other mobile operators. Until now they are Nokia's biggest clients, but the new cell phones like E61, E70 or N81ie make Wifi calls possible and allow the easy installation of services like Jajah and Cellity which must hurt them. Does Nokia leave a sinking ship, with everytime smaller margins in the mobile phone industry, to concentrate with it's Wifi/GSM phones on the office market with its gross margins?

„Nokia has not changed it's strategy“, said Ari Virtanen, Vice President Convergence Products, Multimedia of Nokia. „I cannot see any conflict between Nokia and the mobile operators because of the Wifi capabilities.“ Really? I can't believe it. In Germany you can buy the E61 for 1 Euro together with a cell phone contract. „Most heavy mobile phone users spend 80 per cent of their time in Wifi areas: at home and in the office“, says Harry Behrens, CEO of 4S newcom. „Why should they use then expensive mobile phone connections when they can call with the same device nearly for free on Wifi?“

Sounds logically to me, a perfect „minute stealer“ scenario.

You have to keep in mind that people who download music for free instead of buying it on CD are persecuted and called thiefs. Even if they wouldn't have bought the CD anyway. So in music a person who uses an alternative way to access to songs is a „music stealer“ and a danger to the industry. But in telecommunications a person who uses an alternative way to access to mobile communication for free is no „minute stealer“ and no danger to the industry? Not quite convincing.

I agree more with Rebtel's Hjalmar Windbladh who said that „today's prices for mobile internet, mobile international phone calls and SMS are a daylight robbery“. Companies like Vodafone pay only 0,8 Euro Cent a minute for a mobile phone call from Germany to China, he explained to me. „So why do they cash 1 Euro or more from their costumers?“. This „toxic pricing“, as Windbladh calls it, brought in the „minute stealers“ like Rebtel which can connect the same phone call for some Cents. At least Alexander Straub of Truphone was not afraid to tell that „we are building our own network which allows free mobile phone calls worldwide.“

You companies ARE stealing minutes and you do quite a good job in it! When I compare your prices with my normal cell phone costs they can save me between 50 and 90 per cent. Be proud of it and don't hesitat to use the name „minute stealer“!

The network operators have understood your business anyway and they already have you on their radar. Rolf Hansen, CEO of the German MVNO Simyo even recommends to use Jajah for international calls since he cannot lower their prices in the near future. Vodafone, E-Plus and T-Mobile told me that they don't see you as a danger since you are still so small. But you will not be forever.

But maybe these companies just want to stay under the radar and don't want to attract too much attention. Their businesses live from very small margins on the phone minute. Often it's far less than a Cent. The big companies can push them out of business by just lowering their prices a little bit. Or they do it like AT&T which with one stroke of a feather created the largest unlimited calling community in the US: 100 million AT&T wireless and wireline phone numbers can call each other now for free.

Who will install then the software of the „minute stealers“ on his mobile phone?