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Is Truphone the modern day Boo.com?
Published by Ewan on Tuesday 13th May 2008, 16:44 Comments | Filed under: Mobile

People tell me things about Truphone, the VOIP pioneer. I have no idea how accurate they are. Everything I’m being told is negative, though.

What I do know is that Jeb Brilliant of Brilliant Expos is a regular user. But the moment they want to charge him, he’s clear that he’ll look elsewhere.

I know a few other users… who ONLY use Truphone because it’s free. That can’t be a good position from which to grow, surely?

The future — at least, viewed from SMS Text News Towers, doesn’t look too bright, regardless of the money they raised recently.

If the rumoured burn rates are anywhere near reality, geez. I don’t know. Everyone I’ve met who’s been to their headquarters — apparently plush and very swish (I haven’t been) has remarked on the total waste of money they’ve been witnessing.

I do have high hopes for the company. Particularly if there’s a way of attaching a sim card to their VOIP service so I can use it ‘anywhere’ there’s GSM access. If the rates were good and I could get ubiquity of access a la GSM, I’d entertain using them as a primary operator and I’m sure a healthy percentage of the 250,000 SMS Text News audience would too. Right?

We’ll wait and see, eh? In the meantime — please — does anyone have any good news about Truphone?

Check out the piece I’ve just written after talking to Truphone directly this evening.

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  • bitflung
    good news about truphone? sure. i used them for quite a while. sadly, i don't use them much now - but let's just say that they got some $$$ from this happy customer (i bought at least one $10 top off - mostly to play with SMS over IP).

    good points:

    1. their OUTBOUND rates are on par with the per-minute rates of a monthly contract tariff in the usa. actually, just a bit better than most (nominally $40 gets you 450 minutes == ~$0.09/min - truphone USA to USA calls are about $0.06/min )

    2. inbound is always free, so round about 50% of your calls are just plain old free. so turn that 6 cents a minute into 3 cents a minute and smile.

    3. they give you a real PSTN accessible phone number. great guns.

    4. calls connect QUICKLY and are STABLE (compared to Gizmo, truphone is significantly better in call setup time as well as call quality).

    here's the statement of opinion that really digs deep, and i think many many people would agree with me (if not immediately, then eventually):

    If truphone offers SIM cards that can roam LOCALLY and include UNLIMITED OR VERY LARGE data plans economically, then they will have my business. I would pay up to $40/month for GSM data alone, if it provided me with unlimited GSM data and required no contract. would be great if i could make/receive a few calls over GSM without paying extra (you know, for road trips) but i'd be content with a reasonable GSM voice tariff.

    thats it. the killer app. truphone is SO close.... just push SIM cards to us, charge monthly for all-we-can-eat data within our home country (i'll find wifi when i'm abroad! i need convenience on a daily basis at home!) and let us pay your normal, relatively cheap, voip prices for calls.

    good news about truphone? sure i've got that: they have the assets required to do this right. have they done it yet? not exactly, but i wouldn't be surprised to see them do it. all told, they've done a fantastic job at what they've tried for so far - so if they attempt what i've described then i'll be an early adopter and snicker loudly at anyone using a Verizon handset.
  • rafeblandford
    I've heard some similar comments, but I think a lot of it is trash talk. Clearly there's a lot of competition in the VoIP space. However Truphone looks set to be taking a rather different route to others (i.e. becoming an operator) rather than looking to downloads / partnerships with ISPs / operators as others seem to plan. While I do think this is a more risky route (and Truphone are investing a lot in it) I think the potential is commensurate with that risk (and more likely to have legs in the short term as it is an easy conceptual leap for normobs).

    Despite a lot of talk there's been relatively few deals between ISPs / operators and mVoIP providers that I'm aware of (Fring has done some stuff here). I've got a relatively limited understanding of the underlying technology, but it does seem that Truphone have a strength here (e.g. do a comparison between the various quality levels). One of the problems with mVoIP is that despite a lot of potential it does depend of people adopting it (be via an install or SIM card). Personally I think the sim route is going to get more people likely to pay for calls. A lot of the downloaders are looking for free calls. Making money out of those users is going to be hard and probably done through advertising... I guess it is the 2 million free customers versus 200,000 paying £20 a month argument.
  • Excellent points Rafe!
  • Ewan,
    I was actually mistaken last time we spoke about Truphone. I recalculated and they are cheaper then the plan I am going to be switching to. Truphone is offering 6cents/min to any US number, let's focus on the US because that's where I make the majority of my calls, though I do call abroad a great deal. My carrier of choice AT&T is offering
    450min at .088cents/min is $39.99
    900min at .066cents/min is $59.99
    Now I don't need more then 900 min if I am able to make Truphone calls and with Truphone I can use my prepaid minutes anywhere in the world. Plus I'm sure they won't expire right away either. I'm rethinking Truphone now and might just use them as my primary phone for business calls. I also have mixed feelings about having to use a sim card to take advantage of their service. I like the idea but still won't give up my AT&T sim/number. I will use Truphone to compliment AT&T not to replace it. I need 2 numbers 1 for work and 1 for personal.
    If Truphone offered a flat rate plan for unlimited calls I would most definitely take advantage of that and I think if they can combine that with and without a sim card then they're in business. Well that would be ideal for me and I think a lot of other people, but I think having the options of using their service with and without a sim card is KEY and so is offering a flat rate option.
    Anyways Ewan, I just wanted append what you said and add that I may look elsewhere but I'm still going to stick to Truphone.
  • I think that bodes well for Truphone, Jeb!
  • When I've brought up the "cost of calls" issue with Truphone, they are telling me that people are actually paying those rates. Why? The quality is fantastic. Quality is worth paying extra for.
  • Gabe
    I use Truphone quite a bit – nearly always for international calls or when I’m abroad and phoning back to the UK. This saves a good bit of money, but you’re restricted to areas of good WiFi signal (a major drawback of any mobile VOIP service)

    I like the way it integrates with the Nokias and doesn’t require a specialist client. I don’t mind paying for calls. Rates are competitive enough.

    I don’t buy the termination revenue argument, though. Why would you give your Truphone number out instead of your normal number?

    Call quality to European mobiles is often appalling… but it can be hard to tell if it’s the WiFi, the termination service, the foreign mobile network, or the receivers’ handset that’s at fault.

    What I’d like would a feature that integrates international call bypass with the TruPhone account– so I could make “normal” international mobile calls at lower cost.

    I like Truphone, it’s a useful service
  • Funnily enough Truphone just texted me to let me know I had 2p left of my original £2 credit. I intend to top up soon to use it for overseas calls. It'll be especially useful in Japan in a couple of months' time.

    Nothing negative to say about them really, their service is reliable. I just hope, with the gossip about overspending at their office, that they're not getting too big for their boots too fast!
  • guys I use truphone since the beginning, about 12 months ago. I moved my whole office and my family on it. I used to have extra ordinary high charges from my network operator and now, I pay about £50 / months for all my national and international calls (and I do a lot) to truphone. Compared to my £250 - £400 / months phone bill I feel in heaven. Looking forward to use it in the holiday season. Most of the time I realize I am in my own wifi, home, office, some friends and I am all setup to call via truphone. Never had an issue with call quality, so they got my VOTE (keep on going)... you are the best mobile provider I have used...
  • truphone to truphone will remain free FOREVER ... so what's the big issue here
  • Anonymous
    I believe there's a bit of re-structuring going on as a result of the new influx of cash. Maybe now would be the right time to write a business plan with a section on revenue generation?
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