Cheap talk about talking cheap?


To avoid expensive overseas calls many people in the developing countries rely on callback systems (invented in 1990 by Argentine/Spanish entrepreneur Martin Varsavsky). Here is how it works. A call is placed to a toll free number, followed by a PIN code unique to each subscriber. Within seconds of the subscriber hanging up a computer calls back to accept the desired destination number. Trans border calls set up using callback systems are far cheaper than the rates charged by local phone companies since callback calls originate from low tariff networks in the West (notably America).

Understandably this practice incenses telephone monopolies and the governments that support them. Large chunks of income is lost by operators along with depressed tax collected. One way to stifle callback systems is to blacklist and block calls to known toll free numbers. In some countries legal action is an option available to the operator and is a deterrent for those contemplating use of call back networks.

New technologies have made possible anonymous, stealth access to callback networks. Most of the new callback services are web-based. For the urban poor that translates into a trip to the nearest internet cafe to place a cheap international call. While internet based systems are harder for operators to tinker with, determined governments have demonstrated capability to block websites offering callback services.

Mobile phone callback services offer renewed hope for price sensitive phone users. Fring, Truphone and Skype Mobile are mobile phone applications targeted at the mass market. While these rely on Voice over IP, others such as Nimbuzz, Talkster and Jajah support traditional voice calls through callback. It is difficult for governments and operators to detect and block callback services on mobile phones.

Rebtel applies a different model. When you subscribe to this service you receive a local number in the country you wish to call. Suppose you have family in the UK and you work in Thailand. When your family dial your local UK number, assigned by Rebtel, the call is automatically re-routed to your Thai number. You pay for the cost of a local call in Thailand. Thats it.

As technology evolves we may soon realise that it is not cheap talk talking about talking cheap.

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