Muentel

There are many free SMS websites worldwide, but most allow the user to send free SMS only within a particular country, since they have to ensure compatibility with the various cellphone companies there.

Since most countries have started maintaining do not call registries, it is difficult for marketing to advertise their message using the mobile network. To overcome this problem, many have starting programs where users get paid for receiving SMSes. Their target audience are usually students and housewives , who have a lot of free time and wish to earn some extra money.

Most offline communities or networks use physical products which have a finite cost related to their raw material, manufacturing costs for every unit that is produced. This limits the profit margin for these products and the company’s profits also vary depending on the variation in the input prices.

Unlike physical products, software products can be replicated at almost no cost to the original developer of the product. The main cost is related to the initial coding, testing and marketing of the product. Once a software product has a large user base, the customers are forced to pay for customisation or regular upgrades to the software. This is why some of the most profitable companies today are software companies like Microsoft, Google and Oracle.

Setting up telecom networks involves a lot of expenditure in both hardware and software by the telecom provider. A part of this cost could be recovered by building virtual communities which are accessible for free only to subscribers of the particular network. Users of other networks can access these services only by purchasing a prepaid card, but may instead prefer to become direct subscribers instead.

Though the usage of telephones has increased drastically in the last few years, especially with the introduction of low cost cellphones, many telecom companies  (or telcos) do not make much profit. This is because the margins in this industry are poor due to low average revenue per user and high advertising and distribution overheads.

One way a telecom company can improve their margins is by using their network of subscribers to cross sell other products. A single telephone by itself is not of much use, since the person owning the phone cannot call anyone else. As the number of people increases, the value of the network increases exponentially, as its use becomes widespread.

A new customer brings 3 benefits to a company - pays the company a fee, he is aware of the products and features offered and increases the reach of the company. Many cellular networks and telecom companies offer features which are free to regular subscribers of their product, but users of competitors services have to pay a fee.

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