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Fring – A Good Deal
by Andrew McCaskey
VoIP on the iPhone: Fring PDF Print E-mail
Written by Andrew McCaskey
Sunday, 05 October 2008 21:37
One more displacement by VoIP: Free cellular minutes and SMS have arrived for the iPhone and iPod Touch in the form of the free application Fring.
Skype, MSN Messenger, ICQ, Google Talk, SIP, Twitter, AIM & Yahoo! It’s hard to imagine that AT&T are very enthusiastic about this one at all. In fact, it is a sign of Apple’s power in the AT&T deal that they can get this app approved and listed in the app store. Not only does Fring remove minutes of wireless revenue, it permits international calling via Skype and by enabling IM, chews away at SMS revenue.
From AT&T’s perspective, Apple is still a bit of a flashy attraction – the loss leader display on the end cap in the supermarket. For many if not most AT&T iPhone customers – the Fring application is going to get downloaded – demonstrated and then forgotten as the next cool app comes out next week. What it will do is make sure that barriers to use – calling, sending messages, keeping in touch more than ever remain low and embedded into their customer’s lifestyle. You call because you are bored, you text to amuse, not inform. You use the device even more. Because you can.
As long as Fring is slightly more hassle to use- a sign on dialog, a username/password. Remembering phone numbers and not being able to cut and paste. All of them add up to just a little more inconvenience.
What they – and Apple will remember is that to show that demo to your friends – you are going to need an Apple product. And, with the exception of the iPod Touch, you will be going through AT&T to get it. They also know that while Free is good, convenience is even better. Just like the house odds in the casino, AT&T does not need to have a big edge to make it very profitable- just a long time. Plus a little knowledge of human nature.
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