MOUNTAIN VIEW, Calif.—PeerMe Inc., a wireless Voice over Internet Protocol company, said it launched a free service for Sprint Nextel Corp. CDMA2000 1x EV-DO phone users that allows them to make unlimited global calls.
The service uses VoIP technology to provide the free unlimited calls, said PeerMe. Users still pay a monthly fee to the carrier, it said.
“Nobody in the cell phone industry has done a marketing campaign touting the tremendous cost savings that can result from using peer-to-peer voice on a wireless broadband mobile device,” said Tom Lasater, chief executive officer of PeerMe. “Carriers are probably scared of cannibalizing their revenues, but let’s look at the real cost of offering this service. Most people pay a flat fee for what is basically unlimited talk time within the U.S., so PeerMe usage is going to affect revenue from overseas calls.”
“The reality is that the erosion of revenue from overseas calls already happened in the 1990s,” said Lasater. “Sprint should do a massive advertising campaign touting their EVDO-enabled devices as the solution for outrageous communications costs. Sprint could not only crush its mobile competitors with this strategy, they could also blindside the DSL and fixed-line broadband industry.”
Sprint Nextel representatives did not immediately return requests for comment.
