Ireland's Cubic Telecom mixes Wi-Fi and low-cost GSM

Telecoms start up Cubic Telecom has launched a mobile phone service which it claims offers locally priced calls no matter what country the user is in.

The Irish firm said that it could offer cheap calls using its Maxroam Sim card because it had struck deals with GSM carriers around the globe.

Cubic claimed that its GSM calls are up to 80 per cent cheaper than the roaming rates offered by existing mobile service providers.

The company only offers two mobile handsets, both of which are Wi-Fi enabled to also use VoIP.

"The Wi-Fi network we use is either the one you have at home, or in your office, or one of our partner networks that cover over 100,000 public hotspots around the world," the Cubic website claims.

Ovum analyst Matthew Howett suggested that the service is most likely a reaction to the recent decision to regulate international roaming in Europe.

"Cubic will be subject to the recent international roaming legislation in Europe and will be using GSM because it will be classified as a reseller," Howett said. "I suspect the situation is different where it uses Wi-Fi."

Howett added that Cubic must negotiate at the wholesale level with each carrier because it does not have its own network.

"In Europe the maximum wholesale charge is now 30 eurocents, inclusive of origination and transit costs, which is set to fall further over the next two years," he said. "This is good news for Cubic."

Cubic claimed that its offering is different because it is designed as a service not a technology.

"All users want is a mobile phone that is simple to use, relatively cheap and allows them to make calls to anyone in the world, from anywhere in the world, at anytime they choose without having to worry about the price," said a company statement.