ChatTime mobile app offers low-cost long-distance calling

Opinion
Dec 6, 20113 mins

About a month ago, we covered the launch of a free mobile app by AT&T that offered substantially reduced long distance calling rates from an AT&T mobile phone. Today, we report on a similar offer using a service called ChatTime, with a couple of notable differences: Not only is the app free, but calls between ChatTime users in 53 countries are also free of long distance charges.

Another difference from the AT&T mobile app: ChatTime is not restricted to one service provider’s network; it can be used on any mobile network that supports an iPhone. And unlike the AT&T option to use a Wi-Fi, ChatTime does not offer Wi-Fi hotspot access to its service, although that option may be coming in the future.

BACKGROUND: AT&T to offer free mobile VoIP app for international calls

ChatTime has a similar infrastructure to the AT&T service in that the app uses the mobile voice channel to establish the call, then the call is sent via a ChatTime’s private IP network to its long distance destination. Since the calls are initiated on a domestic mobile voice network, local voice minutes of use are accrued from user’s mobile voice (access) network. ChatTime also offers low-cost long-distance and international calls to “off-net” phones that are not using the ChatTime mobile app.

Our observations: As we noted in the original report on AT&T’s mobile app, several carriers offer a way to reduce international calling rates using VoIP/IP in tandem with a mobile phone including Verizon (in a partnership with Skype announced here more than a year ago), and Vonage (covered in this October 2011 newsletter) so ChatTime offers one more option for callers looking to reduce their costs, or to call for free when on-net to other ChatTime users.

Many of these mobile options are reminiscent of the days when wireline callers used a prepaid calling card or a 10-10 access code to take advantage of VoIP networks that weren’t quite ready to dial direct. Back then, it was the both the signaling channel and quality of service on a wireline IP network that was the roadblock to direct dialing — another parallel we see with VoIP over mobile networks today.

As voice over LTE standards emerge, perhaps one day voice calls will ride these data channels for free as a mobile service. But then again, we’ve heard that same argument for more than a decade suggesting that free VoIP calls on wireline are also imminent. And while we do see some free VoIP calls (e.g. Skype), we’re still waiting for universally free voice in both worlds.