The Ringo Case - A Lesson For Startups

Nine months ago I was introduced to an app called Ringo that turned out one of the best apps I had ever used. I could call US at just 80 paise a minute and on top of that I didn’t need a data connection. Having used it in the remote areas in Uttaranchal, I even tweeted if I could give an award for the best app I would have given it to Ringo. So much love for an app.

Getting in The Wrong Lane
There is a thrill in being the fast and the furious. The downside too, you might also get finished up just as well. Ringo got a bit too ambitious when last week it launched local calling at just 19 paise. I asked Bhavin Turakhia, CEO and Founder of Ringo, that wasn’t it almost suicidal considering that the operators probably won’t allow this. He seemed ambitious with a wait and watch policy. Fast forward a week ahead and Ringo domestic calling has ceased to function.

“The service is a fully legal, compliant service, and follows all aspects of the DoT and TRAI regulations. However, in spite of being fully compliant with the law, the service allegedly seems to have been blocked as of half an hour ago (November 30) without any notice to our service providers,” the company said in a blog.


Why Ringo Got It Wrong
Ringo’s offer at 19 for domestic calling isn’t such a great deal. Considering with packs a customer can get deals as less as 30 paise. 80 paise for calling US without wifi is a good deal whereas 19 paise for domestic isn’t such a big deal.

Cumbersome: Conference Bridge technology works well in international calls. For domestic is more like press it and talk not. Having to go through so many clicks for calls that you make every few minutes is too cumbersome.

Ringo’s Caller identity problem: A different caller number and sms based informing the customer who the real caller is too cumbersome in times now

Voice quality: There was an issue was voice quality also with overload.

Dont mess with the operator: I am no lover of operators being on the other side in the net neutrality debate, however messing up with the operator in a direct confrontation with Airtel or Vodafone, with a less than innovative product, seemed more like a rabbit against a tiger.

What Makes Ringo Great
80 paise a call to US without wifi is just awesome. International calling without wifi at cheap prices is their strength.

Good voice quality.

Innovativeness: a rudimentary idea like a conference bridge into savings for consumer.

The Last Word
There is a lesson to be learnt from the Ringo case. Getting disruptive just for the namesake doesn’t work, there has to be substance behind the disruption.

The biggest strength of startups is in their innovativeness, in the solutions they provide and the benefits and savings for the consumer. Ringo could have easily built on their strength and taken international calling to a whole new dimension especially in areas where internet is limited or maybe even offered a “better”, cheaper way of local calling.