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Free international calls offer - too good to be true?

By Mauricio Freitas, in , posted: 22-Feb-2010 10:23

Today I've noticed this ad in one of our pages (already blocked the advertiser of course):



It sounds too good to be true, right?

First you have to realise that 028 is not a free number (I have blanked out the rest of their 028 number). So while you might get a "free" call to some country, you still have to pay the call to their access number. New Zealand 028 numbers are charged like mobile phone calls, so they are not cheap.

In these cases it might actually be cheaper to simply call the international number from your mobile. Unless you too have an 028 number, supplied by 2talk. Calls from 028 numbers to other 028 numbers are free - this is the best case scenario.

As pointed out by Steve in the comments, here is the catch: the company can carry very cheap calls to international destinations, but instead of offering a free access number in New Zealand, it offers a 028 number, which is charged at mobile rates - so they make money on the difference.

As I said, it might be cheaper to just use your mobile to call those international destinations instead.





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Comment by sbiddle, on 22-Feb-2010 10:32

What a great business model..

Receive inbound call revenue from 2talk for terminating an 028 number that is charged at mobile rates and then make an outgoing call that's costing significantly less.

There's a cash cow. Why didn't I do it first!


Comment by taneb1, on 22-Feb-2010 10:34

I wonder how this would work with something like 2Talk which allows free calls to other 028 numbers, if it would still charge for a call or if it would be free (Depending on if the 028 number was a NZ 028 number)


Comment by Nic Wise, on 22-Feb-2010 11:07

Sounds like a good deal - the user pays "nothing" (assuming they have inter-network mobile-to-mobile calls included), the terminating carrier gets the interconnect amount (eg 30c/min?), and then just routes it over VOIP for close to free - as long as the voip minutes cost less than the termination charge minimim, it's a simple margin calculation.

Smart. :) I'm sure TCNZ and VFNZ will try to squash it, tho - but hey, aren't they the ones who want to keep the MTR stuff anyway?


Comment by coffeebaron, on 22-Feb-2010 11:12

@taneb1
Just tired from my 2talk number. I was not charged, so could be a winner :)


Author's note by freitasm, on 22-Feb-2010 11:15

Nic, IIRC there isn't a mobile-to-mobile network free rate in New Zealand. But you can place 028 calls free to 028 numbers - and there's a free 2talk 028 number plan. Here's how you can get the free calls - otherwise it will be expensive.


Comment by simon14, on 22-Feb-2010 11:24

Why remove the ad though? I first saw it over a week ago and looked into it... it was quite clear that the call to the 028 number was charged at as a mobile call.
I sometimes don't use all my free minutes up so i could always call overseas for free at the end of my billing cycle to make the most of those minutes.


Comment by Pat, on 22-Feb-2010 11:25

I thought Black and white had 028


Author's note by freitasm, on 22-Feb-2010 11:25

I removed the ad because it'sn not clear enough the calls are charged. This is explained in their ToS under the "FREE SERVICE" heading.  I thought it was misleadig and I didn't want the ads on Geekzone.


Comment by Jason Pollock, on 22-Feb-2010 11:30

This is a class of service in the "Iowa Free Conference Service" and "Iowa Free Long Distance" lines.

It is a form of arbitrage, where they rely on the fact that they can purchase international long distance minutes for a lot less than the going termination rates - much like the previous Free ISP services that used to be here.

Their target market are individuals with minute plans, or unlimited calling (like in the US).

http://techcrunch.com/2007/01/12/complicated-laws-free-calls/
http://blog.tomevslin.com/2006/10/free_internatio.html

It's taken a couple of years to get here, probably because it's being torn down in the US market. For example, AT&T and Google are refusing to route long distance calls to those numbers.

In other words, it may be fishy, but it doesn't have to be in order to make a profit. :)


Comment by sbiddle, on 22-Feb-2010 11:38

@taneb1 Not all 028 to 028 calls are free. 2talk 028 to 2talk 028 calls are free.

The 028 number range is also used by other providers other than 2talk.


Comment by paradoxsm, on 22-Feb-2010 12:17

Why remove the ad? the site is quite clear about how they work and when "you shouldn't use us" It's a great idea if you have a plethora of free minutes on your mobile and want to use them up because otherwise many of them get wasted, this is the true cash-cow.

Pay-in-advance use-it-or-lose-it plans ar a ripoff, period. and sadly companies are moving away from the decent plans such as Telecom flexi and Xnet's pay-per-MB


Comment by JasonDarwin, on 24-Feb-2010 17:25

Responsible to pull the ads.


Comment by Chris, on 4-Mar-2010 04:57

@freitasm

Please take a look at the updated page on our website regarding free international calling from NZ: http://www.mojocall.com/nz/

Since this is a new concept to NZ, I have made it more clear on our landing page that calling our access number will bill you at the NZ national mobile rate, and from there you can make an international call for no additional charges.

In some cases if you've signed up for certain plans with Telecom/Voda, it is cheaper for you to direct dial some international destinations than use MojoCall. Most of those plans only cover 5-15 destinations though, and usually require that you purchase an add-on to your plan or be in a monthly plan with a higher number of minutes.

If you have extra mobile minutes on your monthly account, need to make an international call on the go, or only make a few international calls a month, MojoCall is a great way to do it and save money.

I hope you'll reconsider your blocking of advertising on our site.


Comment by bobby, on 7-May-2010 01:14

@coffeebaron

calling from 2talk doesn't work. are you sure?? try now?


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Mauricio Freitas
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New Zealand


I live in New Zealand and my interests include mobile devices, good books, movies and food of course! 

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