Video Archives

Truphone

Product Name

Truphone

Market Segment

Consumer Devices

Funding

Series A, January 2007: Venture funding from Burda Digital Ventures, Eden Ventures, Independent News & Media, Straub Ventures, Wellington Partners, $23.5 million.

Competitors

The provision of voice/text services on mobile handsets defines Truphone as a Mobile Internet Network Operator (MINO). Its main competitors are, therefore, any incumbent Mobile Network Operators wherever Truphone is used.

Product Description

Truphone enables mobile phone users to enjoy free/low-cost calls and text messages [SMS] by routing via Wi-Fi and the Internet whenever possible. The service is presently in beta and delivers Voice-over-IP, SMS-over-IP and “presence” (showing when contacts are online). A Truphone-enabled mobile handset automatically connects to wireless hotspot networks with which Truphone has roaming agreements without requiring user names or passwords, and also connects easily to personal or other open Wi-Fi networks.

Market Opportunity

IDC expects the smartphone market to rise to around 250 million units by 2010. Wi-Fi will be abundant. In 2006, 29% of 65 new Symbian smartphone models had Wi-Fi. The end-to-end IP connection Truphone establishes between on-net handsets will enable new services, besides Voice and SMS, to be introduced.

Demo Says

It may not happen in the next 12 months, but it certainly will happen—mobile operators will find their business model disrupted by consumers unwillingness to pay for metered minutes and new competitors who value services over connection fees. Truphone is at the leading edge of this change, by positioning its voice over WiFi services as a next-generation MVO. Truphone makes switching between Wi-Fi and GSM seamless for users, lowering the hurdles for user adoption and raising the bar on delivered value.