Low-cost calling application Ringo today introduced calls within the country at 19 paise per minute, which it claims to be 90 per cent cheaper than the standard rate offered by most telecom operators.
Ringo, which uses the network of mobile operators to make calls, is aiming to have a million customers in 3-6 months.
“Our local calling service is not only the cheapest in India right now, but free of typical telecom-related hassles such as STD charges and differential pricing,” Ringo CEO and founder Bhavin Turakhia said here.
He said Ringo is able to offer cheaper calling by purchasing minutes in bulk at low prices from telecom operators and passing on the accrued savings to its customers.
The company uses top-end technology that connects both the initiator and the recipient of a call via a conference bridge.
Turakhia, however, did not share details.
“We buy bulk minutes from telecom operators through aggregators such as Tata Communications, British Telecom and Verizon,” he added.
The company in January had launched the international voice calling service, which is available in over 100 countries as of now.
Asked if Ringo will eat into the voice revenues of mobile operators, who might claim that the app’s quality is not very good, Turakhia said, “If they (telcos) talk about voice quality of the app being lower, they are actually putting themselves down because Ringo is not making the call, Ringo is using their network to make the call.”
Ringo users can call any landline or mobile in the country at a flat rate of 19 paise/min, without any additional charges like roaming, STD or top-up cards.