Monday 29 October 2007

Jaxtr - the dirty details

With all the "free calls" sites and services out there it can be very confusing. A lot of people are looking for free calls to India. Most services don't include places with higher costs such as India, in their "free calls" supported countries. Jaxtr is (or at least was) an exception. Except now people are starting to report problems:
** You cannot call to the same number second time.
** US Local number what they provide never function.
** Sudden disconnect the calls while talking.
** only US people have 100 Minutes, all other country they allow only 3 - 16 minutes per month as rollover.

Tuesday 4 September 2007

VOIPStunt not dialling

I'm using VOIPStunt, however, for the last 3 months or so, I can connect to the SIP service (get the internet call logo), and it dials without any error messages. However, I basically can't hear anything at all. The phone will quite happily stay like that infinitely, but I know that the other person's phone doesn't even ring. Any ideas?

Jaxtr math doesn't add up

Jaxtr also seems to be another of these companies where the math just doesn't work and one has to wonder on what basis they raised money and (supposedly) have received acquisition offers.

According to Tech Untangled, they are signing up 16,000 accounts per day. That is pretty impressive, for sure (if true - and nobody is saying how much they're spending in marketing to get those subs).

But looking closer, they say that 80% of their customers are in "220 countries outside the US." According to Michael Cerda, a majority of usage comes from "India, China, and Sri Lanka (the CEO himself said about 75% of their users are in these areas)" -- we know these geographies do not tend to hold high revenue potential:

Customers there are loyal only to your offer of "free" or "cheap" - when something cheaper comes along, those customers are gone.

Jaxtr plans to make money by charging people who use more than their allotted 100 minutes per month. An interesting choice, given that there aren't many businesses with lower margins than calling minutes.

Their stated goal is to reach 20 million subscribers in 12 months and to get 1% of these to pay for additional minutes.

That math doesn't add up. Jaxtr gives out local numbers to the caller (not one number for the callee). These have real costs, whether they are used or not. Jaxtr gives away the first 100 minutes (and extra minutes for signing up new customers). Given that about 75% of users are making calls from mobile phones, these 100 minutes also have significant costs (mobile calls outside the US cost typically 10x - 20x the cost of landline calls).

I don't even see how the supposed 1% of paying customers will result in gross margin, or, in other words, how such a customer offsets the costs of that one customer. To say nothing of how they will offset the costs of the other 99%! And all this is BEFORE any marketing costs, G&A, salaries, etc.

My math says that those 16,000 new accounts represent, conservatively, at least $10K in new monthly costs added per day (I would not be surprised if it were really $100K); and that means their monthly costs increase by roughly $300K each month, which means they burn through the $10 million they just raised in less than 12 months, before they hit their goal. Even if they reach their goal, if they get 1% to pay $2 per month (average), they will have revenues of $400K per month -- but their costs will be something like $20 million per month! Of course, this doesn't factor in advertising revenue, but I don't think that changes things enough to make Jaxtr work (especially given that these are just direct operating costs, not including salaries, marketing etc.)

Although, I suppose in this game of "sell it while it's hot", the whole idea of profits is not part of the equation. Skype didn't need any for their multi-billion dollar sale to Ebay (and may still not have any profits, given how Ebay doesn't say). Grandcentral didn't even have revenues. The list goes on.

Friday 31 August 2007

Emergency PhoneGnome Service Migration

Notice to PhoneGnome customers

Today, at 3PM PDT, we received a notice from one of our data center
providers that they will be ceasing all operations on August 31 - 2
days from now. A significant portion of PhoneGnome operations are
hosted by this provider and it is unlikely that we can rehost these
services in only two days.

As a result, some PhoneGnome customers will experience service
interruptions; we request that you remain patient as we work to
restore PhoneGnome services. We will do our very best to minimize
service interruptions, but we request that you refrain from calling
or sending email as that may distract from our service recovery
efforts.

Thursday 23 August 2007

GrandCentral could not port over numbers

This has got to be painful for a service that promises you one number for life. GrandCentral, one of the latest Google acquisitions, that offers you one number for life that rings on all your phones has been forced to change some of their customers’ phone numbers. Due to problems with one of their upstream providers, GrandCentral could not port over some 400 numbers to another carrier and was forced to assign these customers a new phone number.

Even though GrandCentral immediately informed the affected users and assigned them a new number this will affect the credibility of the service. Users were only given notice 10 days in advance and will no longer be able to use their new number as of 31 August.

“Having to change my number would be very disruptive and a huge hassle. The possibility of this happening has become my biggest hesitation with fully embracing and using my GrandCentral number,” said Ben Spinks, practice manager at Tipp City Veterinary Hospital in Ohio. “I have gone so far as to include it in my business e-mail signatures, but I am still nervous about getting my business cards reprinted.”

Friday 17 August 2007

Yoomba spams your contact lists

Aggressive Yoomba - Early users of consolidation service complain Yoomba spams their contact lists with invitations to join up.

Some early users of Yoomba's new e-mail calling and chat service are complaining that the service spams their e-mail contact lists.

Launched on Thursday, Yoomba is a free, peer-to-peer VoIP client that lets any e-mail address owner place a VoIP call or begin an instant-messaging session with any other e-mail address, whether or not the recipient is also a Yoomba user. The service adds a button to e-mail interfaces allowing users to call or chat with anyone on their e-mail contact list.

But some users are complaining about how the service sends out e-mail messages to all of their contacts inviting them to use the service.

"It spammed my entire contact list... I call that a 'virus,'" said one reader in an e-mail, who asked not to be named.

Another user had a similar experience. At the prompt that read "Here are your closest friends on Yoomba, let them know you are on," the user hit the "next" button.

"Of course those were not in fact my closest friends 'on' Yoomba, but rather my entire contact list, which it proceeded to spam," said the user in an anonymous posting to the Network World Web site. "How embarrassing. Needless to say, I uninstalled."

"These guys put in this cute little feature where after install, it brings up a screen to add contacts. If you don't read carefully (or maybe even if you do ... I can't seem to get back to the screen) it spams all of your freaking contacts!!!," said the user in a posting. "Looks to me like it's just another IM/VOIP client, but with an auto add-all-your-contacts-and-spam-them 'feature'."

Thursday 16 August 2007

Skype Suffers Major Outage

Skype has suffered a major service outage that started from approximately 3am PST Thursday.

Skype advised that their engineering team had determined that the downtime was due to a software issue, with the problem expected to be solved “within 12 to 24 hours.”

The issue was serious enough to cause Skype to temporarily disable all downloads of the Skype client.

Skpe has had a very strong record of uptime previously and this outage is a first in recent memory. In comparison Twitter was down intermittently from 7pm PST Wednesday for around 6 hours, a fairy regular occurrence. Skype remained down at the time of writing as at 7:30am PST.

Friday 3 August 2007

Shame On You Rebtel

If they call anybody from their Rebtel address book they are diverted to strangers. If they then go to the Rebtel website to register a new "friend" to call - it is 100 % certain they will not call this friend but a complete stranger.