Exclusive: Viber testing new business model, hijacking your cellular calls
Share on Facebook
Share on Twitter
Share on Google+
Share on Linkedin
Share on Email

Photo Credit: PR

Photo Credit: PR

You may soon begin receiving non-Viber phone calls through your Viber app

Photo Credit: PR

Photo Credit: PR

Last month, Viber announced reaching 200 million users of their service. The company’s current growth is particularly impressive, with data showing half a million new users joining the service every day. Until recently though, it wasn’t clear how the company was planning to generate revenue from these users since the app it offers is free.

However, according to new information received by Geektime, apparently Viber has come up with a formula to monetize their massive user base by taking control of some of the lines through which Viber users calls’ pass through. What actually happens is that if the Viber app is installed on your device, it could very well be that you will begin to receive regular phone calls through your Viber app as well as Viber calls, if the caller is using a carrier for which Viber has taken over Call Termination activities.

How it works and how Viber is benefiting?

To explain the way in which the new model of Viber works, you first need a little background into the workings of the international phone ecosystem in general. Every call that you make is filtered first and foremost through a wireless carrier who transfers the call to a PBX central redirector. The PBX in turn, decides which ‘terminator’ to send the call through based on inter corporate contracts. The terminator that receives the call from the PBX, then routes the call to the receiving wireless carrier who transfers it to the receiving phone.

shutterstock_130439015

The entity to which the PBX server forwards a call is called a terminator, and the process is called Call Termination. Companies looking to be terminators must work out deals with local carriers for the right to be the ones transferring outgoing calls from one specific country to another for that carrier. Terminator airtime revenue varies from country to country; for example, in the UK terminators receive a max of 0.67 pence per minute and in Italy the price is 1.5 cents (of a Euro) per minute.

How does this relate to Viber? Geektime learned that the company started a pilot project with a Dutch mobile operator to become a terminator for the carrier, conducting its own Call Termination processes. It works as follows: An outgoing call via the Dutch cellular operator passes through the Viber terminator. If the target party is a Viber user, the call will be accepted by the Viber app. If not, the Viber terminator will have to find an alternate route to transfer the call. Why become a terminator? Because as a terminator, Viber gets paid for every call that comes their way and is subsequently routed to a Viber end user. With 200 million users now, the amount of calls which will ultimately be routed to Viber users may, in all statistical probability, wind up creating a highly profitable scenario for the company. Why would a mobile operator cooperate with Viber? It all depends on Viber’s rates. If they offer cheaper rates than other terminators, why not?

shutterstock_114463471

How can users profit from this?

The next time you get a regular call from someone who’s not on your Viber contact list through your Viber app, you’re most probably an unwitting participant in Viber’s pilot test to see if their new business model is working and profitable, and whether it’s worthwhile to begin thinking about a broader global rollout. As far as the user is concerned, Viber’s entrance into the global terminator market might increase competition and influence pricing wars which can lower your international calling rates in general.

As far as local-to-local calls are concerned, Viber’s move will not have much impact as the regulation dynamic to break into such markets are often complex and tightly controlled by the local carriers.

Update: Viber’s official response to the following:

“Viber is running multiple tests at any given point in time aimed at exploring innovative ways to integrate with the standard telephony system and offer new and exciting service. 

The service mentioned in the article is one such test that was run with an extremely small number of users, reflecting less than 0.0002% of call volume on the Viber system.

If we ever made this service commercially available it will be on an optional basis.”

 

Photo Credit: Shutterstock, Shutterstock

Share on:Share
Share on Facebook
Share on Twitter
Share on Google+
Share on Linkedin
Share on Email
Avishay Bassa

About Avishay Bassa


Seasoned web developer, Gadget freak and loves everything Google, Android and open source. Avishay is the guy in charge of dismantling every new gadget that dares step into our office and hopefully put it back together and write a review about it afterwards.

More Goodies From Avishay Bassa


Internet
Internet
Internet

More Goodies From Mobile


Wix Expands with Acquisition of Restaurant Solutions Provider OpenRest

Giant robot combat sports might actually get funded

India is the world’s fastest growing country for software product startups, says report

  • http://www.retrify.com irfan

    that’s a great monetization model from Viber.IF they could make revenue using this business model,then they can handle such a huge user base

  • Mike

    Great article, explains a lot since today’s update has added their “Viber Out” feature and also an option in the Settings which is on by default of what exactly this was talking about, that is–Viber intercepting all your calls and routing it through the app. I wouldn’t care so much because I know they have to make money somehow and my 2+ years of using Viber for free has to be paid by somebody right? But here’s the thing, they’re practically shoving that Viber Out crap down our throats. Whenever you go into the contact screen of Viber, it no longer just displays your Viber contacts, it displays ALL your contacts in an attempt to get you to use Viber Out (Skype like feature). And the part that pisses me off the most… you can’t turn it off. For that session you can choose to have just your Viber contacts listed, but as soon as you leave the app and come back in… ta-da!!! ALL your contacts show up again, and you have the “option” of calling non-Viber contacts with “Viber Out”. If it wasn’t for my gf having a WP 8 and there are no good alternatives to Viber on that ecosystem I would have trashed Viber today.

  • Bes

    Incoming calls on my phone has been viber calls from non-viber users. How do I remove mine from this hijack and testing. The incoming international calls from non-voter phones are
    terrible. Please help.

    • Bes

      viber*

Don't Adblock
Me Please