Start-up MobileMax Ltd., which has developed a product for discount international calls from cellphones, is targeting a huge market, as anyone who has traveled abroad with their cellphone knows. The company recently raised $5 million in its second financing round from Leon Recanati’s investment group GlenRock Israel and others.
MobileMax was founded 18 months ago by three entrepreneurs, two of whom are inactive, while the third, Raanan Cohen, serves as CEO. Cohen previously held senior positions in various communications start-ups, including Cash-U (now Unipier Ltd.), and worked at the Prime Minister’s Office.
Cohen said the discount international calls services market totaled $6-10 billion a year. “Everyone knows how expensive it is to make an international call from a mobile phone. Although there are quite a few discount call services, they are rather inconvenient to use, and the range of rates is between ten and twenty-fold.”
MobileMax has developed two products: hardware and software. The software is designed for smart phones and installed in them; the hardware is a small component attached to less sophisticated mobile phones. Both products enable direct international calls from mobile phones.
“Globes”: How does it work?
Cohen: “The software identifies the call and directs either to a pre-selected discount international calls carrier, or a selected service provider.”
Cohen says those using MobileMax’s product will not notice it. “The product is transparent. A person simply dials the number, and that’s it. We sell to service providers Bezeq International, Barak, and Golden Lines across the world. Another advantage for operators is that installation of the service is not complicated, and doesn’t require complex integration or needless expenses. The engine we developed is customized to the operator’s specifications.”
Aren’t wireless operators furious?
“We thought we’d make enemies out of wireless operators, but we were surprised to discover that they were greatly interested in boosting traffic. Today, anyone who doesn’t want to pay high rate for international calls, and doesn’t arrange an inexpensive service, simply doesn’t use his or her mobile phone. Wireless operators prefer for people to use their mobile phones overseas, even if the call doesn’t go through them, because they make money on air-time. In addition, some operators can offer the service to their subscribers, since they, too, now operate all kinds of discount international calls services.”
Sources close to MobileMax said this week that not only international calls carriers were interested in the company’s products, but large technology companies, such as Amdocs Ltd. (NYSE: DOX) and Comverse Technology Inc. (Nasdaq: CMVT) were also interested in buying the service for their staff.
Cohen declined to comment about contracts not yet signed, but said, “We’re very focused, and interested in selling the service to operators, so that they will provide support for end-users. This will make it possible for us to continue focusing on technological development.”
GlenRock strategic investment manager Ziv Kop said, “The company provides a technology product that meets a real need in a huge market. The investment in MobileMax follows our investments in technology companies outside the standard investments by venture capital funds. These companies target the needs of the individual end-user.” Kop is a director at MobileMax.
Published by Globes [online], Israel business news - www.globes.co.il - on March 9, 2006
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