Cubic Telecom's Maxroam in alliance with Celtrek

Irishman Pat Phelan, CEO of Cubic Telecom, is improving his product Maxroam. In the hype time around TechCrunch 40 competition in September 2007 we thought to see roaming prices around $0.20 in every country with this SIM card. That's not a reality yet, but not forgotten as a longer term aim. Now Cubic Telecom announced a cooperation with the folks at Global Roaming which offer a very similar SIM card, called Celtrek. The partnership will allow both companies to offer extended geographic coverage and data roaming on their existing products. Celtrek is stronger in the US market and Maxroam here in Europe.

Phoneboy Dameon Welch-Abemathy revealed an interesting detail in his post on The VoIP Weblog:

What wasn't announced in the press release, but slipped out on Pat's Jaiku stream was that the MAXroam service would soon be much cheaper in the US/Canada. Right now, it's prohibitively expensive, but Pat is saying by early 2008 the price should be about 12 cents (presuming Eurocents here). I'm not going to hold Pat to those rates, but if it's true, it does sound a fair bit better than the 1.18 Euros it now costs to receive and make calls within the USA.

Andy Abramson explains:

While their pricing isn't lower than buying local SIM cards, they do save you money if you are going from country to country, and you avoid a lot of unused minutes. They also give you the benefit of one number so friends and family can find you, making it a great gift for the student you know whose going to take a trip overseas.

Yes that's right. The pricing isn't lower than local SIM cards, but it's super convenient for frequent travellers to always have the same number on their SIM and don't have to worry too much for roaming prices. I am already playing around with a Cubic Phone from Pirelli and a Maxroam SIM card. The sound quality is fantastic while roaming on the German Vodafone network. I have a UK fixed line number for Maxroam and could also add a German number. They all would ring in whichever country I am.

The only thing that holds me back is that for Germany they only offer numbers from Hanover while I live in funky Berlin. He Pat, didn't they tell you that Hanover has the fame of being Germany's most boring city? So boring that in the 80ies and early 90ies Punks regularily gathered from all over the country to mix it up at least one time a year in their famous Chaos Days. So when I roam I will simply forward my existing Berlin number to the Maxroam UK number. As a Voipchecker I know how to do that for free, this I can save the €4.50 per month for a German Maxroam number.

Anyway, here is Cubic Telecom's press release:

Cubic Telecom and Global Roaming align forces
Alliance will focus on joint opportunities

CORK, Ireland – 30 November, 2007 – Cubic Telecom dba MAXroam and Global Roaming Inc. dba CelTrek have today announced a strategic alliance combining their marketing reach and technical know-how into a single partnership.

The partnership will allow both companies to offer extended geographic coverage and data roaming on their existing products. This is a substantial step forward for both companies in their goal to provide a single global communication platform that brings an end to the monopolistic behavior of the large cellular operators.

Pat Phelan said “I am delighted that Global Roaming has decided to partner with Cubic and I look forward to a world where anyone can call anyone at anytime without worrying about the cost.”

Florian Seroussi, CEO of Global Roaming Inc. said “This alliance gives us an opportunity to get a footprint in Europe in order to spread our ambition of offering low-cost roaming to consumers everywhere.”

Through the partnership both companies are currently actively engaged in joint proposals to large US and European enterprises and announcements on these are imminent.

ABOUT Cubic Telecom
Based in Cork, Ireland, with offices in Vancouver, Canada, Cubic Telecom is an innovative global communications company focused on introducing simple, high quality and high value telecommunications services. Its core target market is aggrieved customers across the globe who don’t understand why they can’t get value for money when making international calls while roaming.

ABOUT Global Roaming Inc.
Global Roaming, Inc, is a privately held Nevada corporation, with offices in Miami, Florida. The parent company has over 350 GSM network operator agreements covering more than 165 countries and all continents.

For further information, please contact:

Media Contact
USA
Giovanni Rodriguez,
The Conversation Group
M: +1 650 279 8415
giovanni@theconversationgroup.com

Europe
Patrick Smith, Sonus PR
T: +44 (0)20 7851 4890
M: +44 (0)7734 600553
patrick.smith@sonuspr.com

Company Contact
Cubic Telecom Limited
Pat Phelan, CEO
+353 21 425 0657
info@cubictelecom.com

Cubic Telecom Limited
Unit 1, Webworks
Eglington Street
Cork
Ireland

www.maxroam.com

Company Contact
Global Roaming Inc.
Jenny Callicott, COO
+1 305 249 3121
jenny@celtrek.com

Global Roaming Inc.
1021 Ives Dairy Road
Miami
FL, 33179
USA

www.celtrek.com

3Skypephone doesn't do mobile VoIP

Many commentators didn't realize that the 3Skypephone doesn't really do mobile VoIP. Even my friends at Areamobile thought at first that a 3G data flatrate would be necessary to use it. It was quite easy to get this false impression as the press release only said:

29th October 2007 – Skype, the global Internet communications company and 3, the mobile operator, have launched a new affordable handset that lets you make free Skype to Skype calls and send free Skype instant messages from your mobile phone to other Skype users no matter where they are.

The 3 Skypephone is a fully-featured 3G Internet phone with Skype built-in. In addition to Skype calls the phone makes conventional calls and can be used to access 3’s broad range of other internet services.

3 customers using the 3 Skypephone will be able to make Skype calls and send instant messages on the move with the push of a button. This is the first time an operator has offered a mass market device which is tailor-made for free calling over the internet from a mobile. Now, all of Skype’s 246 million registered can be reached for free with the 3 Skypephone. ...

No more technical details were given. But the mobile Skype calls on the 3Skypephone are basically GSM phone calls, since it's the iSkoot service which is powering them. The day after the launch iSkoot could send out their own press release:

„CAMBRIDGE, MA – October 30, 2007 – iSkoot today announced that it has been selected by Skype to help power the 3 Skypephone – the first ever mass-market Skype-enabled mobile handset. ..."

This means that Skype calls from the 3Skypephone aren't 3G VoIP calls. They are GSM calls from the phone to the 3-iSkoot server, which then cannels them over the fixed line internet to Skype. The data connection is only used to show the presence of the Skype buddies.

The 3Skypephone doesnt really do any mobile VoIP, since it uses Skype only in the fixed line part of the call. The bad voice quality, that for instance Luca critizes, is not because of unreliable 3G coverage. Possible causes are the low sound quality of the GSM codecs or transcoding issues at a gateway level. Yet still iSkoot is a nifty solution to guarantee Skype coverage nearly everywhere.

That's also why their FAQ list says:

Q: Will it work on 2G, 2.5G& 3G networks?
A: Wherever you have coverage in the UK, Skype will work. If you can make a normal voice call, you will be able to make a Skype Call.

Now it's also obvious why the technology doesn't work outside of the 3 network: It relies on free on net calls from the 3Skypephone to the 3-iSkoot server. Luca said that "if you are roaming (in Italy in some places you are under Tim coverage and not 3) Skype calls don’t work".

The 3Skypephone is no new invention but just another marketing skin for iSkoot. Take that TIME magazine if you want to elect your next "Invention Of the Year". ;)

New York Times has to correct article about Cubic Telecom's Maxroam

Please don't think that I am obsessed with Cubic Telecom's Maxroam. But one more thing has to be added. CEO Pat Phelan says that his company made a big mistake this week. I guess that refers to the wrong prices they communicated to their customers. Cubic Telecom sold more than 1,000 SIM cards in the first weekend of pre-sale, says their public relations agency. But now even the New York Times had to apologize to their readers for a very positive article about Maxroam that suddendly appeared wrong in great parts:

This review got an awful lot of people excited.

There's only one problem: those were the wrong rates. The Cubic phone still saves you money, but not as much as I wrote.
...

The company's Web site hadn't yet gone public. I asked its chief executive several times if I could see the Web site in his beta form, but he never did give me access.

So I sent him a list of sample calls I wanted his per-minute prices for. He returned the list with his prices filled in. They were incredibly low, around one-tenth the price you'd pay T-Mobile or AT&T.

But when his Web site (maxroam.com) finally went live, the same day my review appeared, readers immediately started sending me e-mail—sometimes very angry e-mail—letting me know that the Cubic prices online did not match the examples in my story.
...

At first, I thought that he must have been quoting me prices in Euro cents rather than American cents. That would explain about half the discrepancy.

But no, the prices online don't match what he quoted me, even in Euros. (Furthermore, the list I'd sent him included the T-Mobile and AT&T prices for all those sample calls in dollars. I assumed he'd know I wanted a comparison of apples to apples.)

So I wrote him just after the first reader complaints came in. "This has been set up too quickly this morning," he wrote back. "Pricing model will be fixed for tomorrow AM. Just an error from a rushing web designer, sorry."

Whew. Crisis averted.

Except the next day, there was no change to the prices. I wrote him again. This time, he replied: "This error was totally down to an error or miscommunication by our company. We have, however, decided to completely honor this error and update our prices accordingly. These new rates will be lodged today. We apologize for this and error and would like to thank you for bringing it to our attention."

Crisis averted?

Well, sort of. As far as I could tell, he planned to post the super-low prices he'd originally quoted me—but only for the country examples I'd supplied! Those were no longer representative samples; they were artificial samples to match my review.

And besides: he never did, in fact, change those prices (Bahamas, Russia, Greece, Iraq, and so on). They're still higher than what he originally told me.

That's not good, even for a startup company. It shouldn't have happened. Still Cubic Telecom has great features. New York Times' David Pogue lists them:

One of them, for example, lets you choose up to 50 phone numbers for your single phone, in cities all over the world. The idea is that your friends in other countries can now call you for the price of what, for them, is a local call. The Cubic phone is also a Wi-Fi phone, meaning that you can make unlimited calls around the world for a flat monthly fee when you're in Wi-Fi hot spots. And finally, Cubic's higher prices are still much better than most cellphones' international roaming rates. On average, then, it looks like the Cubic card saves you between 25 and 75 percent off the big carriers' rates. Not 90 percent, as I reported.

Journalists don't like it to be fooled. It makes them look stupid to their readers. Cubic Telecom's Sean O'Mahony has more explanations:

We've had lots of great comments from customers and we've made quite a few mistakes as well.

The biggest one was our rate sheet. A couple of times we posted the wrong one so people were confused about whether it was in euros or dollars. We also garnered the attention of David Pogue over at the NY Times who corrected his original piece. Of course Andy Abramson was onto the bandwagon immediately.

I say it's been a funny week because you'd think from all the comments from the "intelligentsia" that we were out to fool people. Our rates are public. They are good and they are honest. If you can find a better deal somewhere else then by all means buy that service.

Hat tips to Andy Abramson for reading that much media that he found the New York Times' correction. See also David Pogue's update article "Cubic Telecom Kerfluffle: The Final Chapter?" from October 6, 2007!

Cubic Telecom's Maxroam stirs up emotions

UPDATE:
On tuesday, October 2nd 2007, Maxroam has fixed their rate calculator. It doesn't say anymore that you can call to wherever in the world for just €0.35 when roaming in Germany. Now different prices apply for each country.

---

After Maxroam went live last week and sold 573 SIM cards on the first day, a big discussion broke out that you could also follow in the comments to my blog. People couldn't believe that when roaming in Germany you can call to wherever in the world for just €0.35. It sounds too good to be true. An anonymous poster even said:

Pat. If you are reading this please fix your rate calculator. If its correct than I will sign up but I promise you that you are going to lose a lot of money from me since I will be calling cuba for several hours a day and I know that there is no way you can cover the termination charges if you charge me based on the website. I work in the telecom industry and know what is and is not real. Please get of the correct rates.

But today the Maxroam rate calculator still says the same: €0.35 to wherever. I cannot verify the real rates either since I don't have a Maxroam SIM yet. Another poster, who calls himself Satphoneguy, commented last night:

I called and spoke to Pat Phelan on the phone today. There is definatly a bug in the rate calculator. He is working on it. For now I would not trust any of the rates to be accurate.

Soon we shall know what the actual rates look like.

I am not really sure if that comment is trustworthy, since Maxroam has to deal with "nasty comments over the last few days from corners seemingly jealous of maybe a tiny bit of growth for this fledgling company". That's how Cubic Telecom's CEO Pat Phelan calls it. He even put up a "new living room policy" to deal with annoying comments on his blog, not allowing them anymore.

From my desk in Berlin I am not yet able to verify what's true and what's not in Maxroam's rates and the commentators criticism. So I beg your pardon if perhaps I copied wrong prices from Maxroam's website. But one thing is for sure: Cubic Telecom is working day and night to complete the product. Pat Phelan even made an exclusive announcement on my blog:

I will give this to you exclusively here. We will have 15-20c USA roaming in next quarter, we will have MAXroam TO MAXroam regardless of country for under 20c in under 5 months, full triggering of call without the callback and global data roaming in under 6 months,this is not the end of a product this is just the beginning.

We intend to change the mobile infrastructure and bring the customer back to the centre. We could launch UK mobile sims with just a flight to the Isle Of Man but we don't want to be just a reseller, you know my personal experience of this business if I thought UK, Lichtenstein, Estonia was a better model I would have just become a reseller and resold the best model possible.

I also note that you commentors are anonymous whilst my phone is on the front page of my blog.

We really appreciate all your feedback.
thanks

So these are the "15 to 20 cents" prices we read about in the articles around TC40. Stay tuned for more to come! I will try hard to get more verified information and to write soon a review of Maxroam.

Cubic Telecom and Maxroam compared to other offers

Now it's nearly a week since Cubic Telecom presented their new product Maxroam at TechCrunch 40 (TC40), but still they don't reveal their real prices which should be found here. Still Maxroam says "Rates published soon" while Cubic Telecom's website consists only of a place holder and former price examples have dissappeared.

Sure, they claim that GSM calls are up to 80 per cent cheaper than the roaming rates offered by existing mobile service providers. But that's a usual claim which you can also hear from competing companies such as United Mobile. I would like to compare the prices by myself.

At least Alec Saunders got some numbers from Cubic Telecom's CEO Pat Phelan when they talked one day after TC40:

Calls from one Cubic subscriber to another are free when used in a hotspot. They also come with a MaxRoam SIM with 5 euros of credit. That's the kicker, frankly. The MaxRoam LD rates will make anyone turn their head sharply… for instance, calls in Canada cost .0063 euros. In the US, .0131 euros. In the UK… .011 euros. In addition, you can get a local number wherever you're going, so that when you travel others can call you cheaply as well.

Sounds great, but for which kind of calls do these costs apply? I guess that's just the WiFI rates since the San Francisco Chronicle writes:

You just slip the MAXRoam SIM into your unlocked GSM phone when you travel and then when you make phone calls abroad, it comes out to about 15 cents per minute, thanks to global roaming agreements that Cubic has worked out with operators around the world.

15 Cent is a great price, whether in euro or in dollar, and undercuts for instance United Mobile with its funny mobile numbers from Liechtenstein or Jersey by nearly 50 per cent. Only I would like to see where this rate applies. And why does VentureBeat write that Maxroam "will provide cell phone users with a SIM card that enables global calling for rates between 20 and 30 cents a minute in more than 160 countries"? That's a price difference of up to 100 per cent in two articles from the same day.

Still it's a great idea that Maxroam works also in Wifi hotspots where you don't have to pay two digit cent prices per minutes, but probably about one cent to most countries. Also these prices are not yet published, but I guess that's what Alec Saunders wrote about. The Wifi prices are of course great, but they have to be compared to the Wifi offers from Wifimobile and Truphone. Truphone calls to 40 countries are free until the end of the year, at Wifimobile you get the same for a flat rate price of $15.99 €11.99 £7.99 per month. In both cases you can use your existing cell phone number as caller ID, unless you are from the US or the UK, and don't have to bear the shame of these weird Liechtenstein, Iceland, Jersey, Estonia or the Isle of Man numbers. Wifimobile's new calltrough numbers in 11 countries even let you place calls outside a Wifi area.

Which brings me to Cubic Telecom's most interesting feature to slash roaming costs: Consumers get a single phone number, but can create multiple permanent local numbers for themselves - up to 50 - anywhere around the globe. All calls are forwarded to their Cubic Mobile phone, no matter where the calls originate, at the best rates for the callers. That's a cool idea, but Cubic Telecom is not the first to offer it. Local numbers for global SIMs are the new trend, I wrote two months ago. The German company GlobalSIM started already in july to give local fixed line numbers from 43 countries to their SIM card customers.

Like Nokia, whose Executive VP & General Manager of Multimedia Anssi Vanjoki recently said that they "copy with pride" from the iPhone, Cubic Telecom has taken all these available features and squashed them into one product. That's a real accomplishment. They even took an existing phone and and made media like FierceVoip or the San Francisco Chronicle call it the "Cubic Mobile Phone". Although it's the known Pirelli DualPhone DP-L10 which the German VoIP provider Sipgate already sells since january.

But now, dear Pat, I would really like to know the prices per minute.

Skype Founding Investor invests in United Mobile to "deliver a combination of Truphone, Jajah and Skype"

Skype's founding investor Morten Lund is investing in the international mobile network operator United Mobile. That's an international cell phone company, comparable to Roam4Free, GoSIM, BlueSIM, Che Mobil, GlobalSIM, SunSIM, TouristMobile or others, which allows outgoing calls at low rates in over 80 countries and to receive free incoming calls without roaming charges.

Morten Lund seems to brim over with enthusiasm for United Mobile’s business strategy of combining its services with so called Web 2.0 functionality and says:

“The business rationale behind United Mobile’s decision to integrate Web 2.0 features into its service offering is compelling. The organisation’s key objective is to transfer the Skype model to the mobile phone for average Joe who is travelling. United Mobile will deliver a combination of Truphone, Jajah and Skype on a “One SIM card Service”. The company will be a leader in delivering free mobile telephony worldwide. This pioneering new business model will be widely adopted in the world’s leading mobile markets in the near future.”

Free mobile telephony worldwide? That's what we want! At least me and all the VoIP telephony tweakers out there who are always looking for the cheapest way to call.

But what about "Truphone, Jajah and Skype on one SIM card"? Is there something going on between these companies? As far as I know from my professional life, United Mobile would need an authorization to mention the other companies' names in a press release. So where Truphone, Jajah and Skype involved in the press release? Or is United Mobile just name dropping them?

Is there something going on behind the courtain? A dark power forging a new VoIP empire out of these four companies?

As far as I see, United Mobile should have the best rates to terminate international cell phone calls. Truphone, Jajah and Skype could envy them. Also United Mobile has its own SIM cards. It would be very convenient for Truphone, Jajah and Skype if they could start their services from a SIM card, instead from their rather slowly phone client or mobile web page. Also it's obvious that these three minute stealers cannot expect support from mobile incumbents. So it would make sense to cooperate with a worldwide mobile MVNO.

Truphone has just presented their new Multi-SIM capability, which supports travellers who take international SIM cards with them abroad. Calls to their Truphone number will reach them whichever SIM they're using at the time. That's nice, but could be even more convenient. Who wants to always change his SIM card whenever he or she arrives at the Airport? Maybe soon it's not necessary anymore to change the SIM card? When will we see a real TruSIM? When a JajahSIM or a SkypeSIM?

Get out of the closet!

Fellow blogger Moshe Maeir already explained here and here how Jajah's access to Intel's patent portfolio helps them to embed Jajah's telephony functions at the chip level of mobile phones. All these developments explain how VoIP companies drool over more speed on mobile phones. Their applications start pretty slow on often feeble and battery sucking cell phones. It takes a minute until you are connected to Wifi and have established a call with one of their softwares.

I guess: Either the four companies are developing secretly something together, to make their mobile VoIP applications start faster from a SIM card. Or United Mobile is developing an application to blow them all away. In this case they have just used the brand names of Truphone, Jajah and Skype for press release name dropping.

At least I'm sure that United Mobile's next press release can be even more interesting. What do you think?