Mobile VAS and ringback tone company OnMobile has reported a net profit of Rs 9.33 crore for the June quarter after narrowing losses steadily from the previous quarters. OnMobile has been shutting down non-core businesses and moving to a new business models and developing products for the same. In a call with analysts, CEO Rajiv Pancholy and senior management talked about how the company is achieving the same. 1. Sprint deal: OnMobile announced that it has entered into a deal with US-based carrier Sprint for their ringback tone service. However, under the new deal existing customers of Sprint's ringback tone service will be transitioned and become OnMobile customers which will take on the responsibility of marketing the service. "Sprint will obviously remain a partner and then provide the vital customer billing service," Pancholy said. "As compared to the traditional wide level B2B model that we have pursuit in the past, a much larger percentage of customer spend will now be booked as OnMobile’s revenues..... With this, we will have the freedom to introduce new features and new capabilities rapidly and most importantly have a direct connection with the end consumer to understand the needs and to respond to them in a timely fashion," he added. Pancholy also elaborated on why they were shifting to a more consumer-focused model using India as an analogy. "But in general for every, let’s say, rupee that is spent every Rs 10 spent by the customer in India about 15% goes off in taxes. Of…
