Wynncom mobiles has entered into an exclusive agreement with free SMS service application provider 160by2.com, to have its mobile phones preinstalled with mobile applications developed by 160by2 to enable users to send free SMS to mobile subscribers in India, UAE, Kuwait, Saudi Arabia, Singapore, Malaysia and Philippines. 160by2, which launched international SMS services last year, plans to expand this offering to Bahrain, Yemen, Qatar and Oman in the Middle East. In comparison, Airtel charges Rs. 3 for an SMS to the Gulf region, and BSNL charges Rs. 5 for an international SMS. 160by2 also allows users to back up their mobile phone book, which they can then access for sending SMS.
Nikhil adds: a pre-load deal works rather well for 160by2, bringing new users who want free SMS on to their site, but I wonder why this deal with Wynncom is ‘exclusive. The value for Wynncom is evident: they will be the only handset manufacturer to offer free SMS to consumers at the time of purchase of the handset, but why would 160by2 want to limit their handset pre-load arrangement to just one handset manufacturer? Is there some revenue share on the purchase of the handset, or a exclusive licensing fee being paid to 160by2?