Cubic Telecom to Launch Global Phone

It’s amazing the way the Internet keeps toppling traditional businesses. Telegrams have gone away. Music CD sales are tanking. Newspapers are hurting.

One especially lucrative business, however, has somehow escaped the Internet’s notice so far: international cellphone calls.

That’s about to change. Early next month, a small company called Cubic Telecom will release what it’s calling the first global mobile phone.

But first, some background. Cellphones from T-Mobile and AT&T rely on the same type of network (called GSM) that most of the rest of the world uses. In theory, then, you can take these phones to other countries and make calls as usual. (Most Verizon and Sprint phones work only in the United States.)

Unfortunately, international roaming runs from $1 to $5 a minute. A 20-minute call home from the Bahamas on a T-Mobile phone will set you back $60. The same call home from Russia on an AT&T cellphone will cost a cool $100.

Sure, you could always rent a phone or use a phone card when you travel — but then nobody knows how to reach you.

It costs a lot to dial overseas from here, too. Verizon charges $1.50 a minute for calls to most countries. AT&T’s rates can be truly Dr. Seussian — like $2.52 to Greece, $2.80 to Iraq and $3.65 to Australia. That’s per minute. Make one 20-minute call to New Zealand, and you owe $75 to AT&T.

Now, most carriers offer special international plans: you pay more a month, you get slightly lower roaming rates. But even they can’t touch the appeal of Cubic’s cellphone. It makes calls to or from any of 214 countries — for 50 to 90 percent off what the big carriers would charge.

On this phone, a 20-minute call from the Bahamas costs $5.80 (that’s 90 percent off T-Mobile’s rate). The Cubic price from Russia is 49 cents a minute (90 percent lower than AT&T).

And there’s no monthly fee and no commitment for any of this. It works like a prepaid phone, where you put some money in your account and use it up as you talk.

At this point, the appropriate world traveler’s response ought to be involuntary drooling, but there’s more to the story. Most of it is more good news, but also more complexity.

For example, consider this: at the MaxRoam.com site from Cubic, you can request local phone numbers in up to 50 cities at no charge. Now you can have a Paris number, a London number and a Mexico City number that your friends overseas can use to call your cellphone.

No longer must you hand out a series of international phone numbers for each trip you make, or expect your colleagues in the United States to pay $50 a pop to reach you.

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