Facilities-based telecommunications provider IDT Corp. unveiled its TuYo Mobile prepaid wireless service targeting the rapidly growing-and increasingly targeted-Hispanic community. IDT said the TuYo Mobile service will offer a bilingual customer experience, international calling and text messaging, and “culturally relevant” music, ringtones, games and graphics.
IDT said the prepaid service will use a yet unnamed “major” GSM carrier-though indications are that it will run on Cingular Wireless L.L.C.’s GSM network-offer handsets from Nokia Corp. and Motorola Inc., logistic services from Brightpoint Inc. and Subscriber Identity Module cards from Gemplus SA. The service is expected to launch during the fourth quarter and initially will be available to dealers from IDT’s distribution affiliate Union Telecard Alliance.
IDT said it currently sells more than 350 million long-distance calling cards per year in the United States and offers prepaid mobile services in Russia and the United Kingdom.
“While other companies are just beginning to discover the Hispanic segment, IDT has been committed to providing highly valued products to millions of Latinos in their communities for over a decade,” said Jim Courter, chief executive officer and vice chairman of IDT.
The TuYo launch will join several other companies that have recently announced plans to target the Hispanic market. InPhonic Inc. earlier this year launched its Viva Liberty extension of its Liberty Wireless mobile virtual network operator service, joining Movida Communications Inc.’s MVNO offering.
A number of established wireless operators also recently have increased their Hispanic marketing and service efforts. Verizon Wireless reported last week that it has launched an authorized agent location devoted specifically to the Spanish-speaking population in Atlanta. The company said the store, called ToDo Communications, is the first communication store in Georgia that is Hispanic owned and has a bilingual staff.
Despite the increasing competition, IDT expressed confidence in being able to penetrate the market.
“We are not a new entrant,” said Rob Schwartz, executive vice president of IDT and president of TuYo Mobile. “We have been selling to the Hispanic market for some time and expect the mobile service will tap into that established market.”
Schwartz cited Virgin Mobile USA L.L.C. as a benchmark for TuYo, noting Virgin Mobile had little brand name recognition when it entered the U.S. market, but was effective in targeting a specific demographic. Virgin Mobile launched its prepaid MVNO service in mid-2002 targeting the youth market and has to date signed more than 3 million customers.
Analysts increasingly have touted the benefits of targeting the Hispanic market with mobile services. Many have cited claims of more than 40 million residents in the United States who rely on Spanish as a first language, and many Latin American countries have strong wireless service industries. Prepaid and non-contract services have been tipped as an effective way to target that customer segment due to the mobility of the service and few credit demands.
In an unrelated announcement, Zamia Group L.L.C. said it has teamed with CellPoint Connect AB to launch a mobile digital content service targeted at the Latino markets in the United States and Mexico.
The service, called Sabormobil, includes a mobile digital content site accessible in both Spanish and English. It features Latin and Raggae ringtones, as well as a library of pictures and games. Plans call for the site to offer a mobile flirt service developed by CellPoint called SmartFlirt.
The first product, a Sabormobil Ringtone/Wallpaper Card, is scheduled to launch this week.
