Fring, which makes a VoIP application for 3G and WiFi-enabled mobile phones, has raised $12 million in its second round of capital.
Israel's Fring, like other mobile VoIP services Yeigo and Truphone, lets you use your data plan -- and not your mobile minutes -- to make cheaper calls. Considering that stand-alone unlimited data plans go for $80/month, compared to around $200/month for unlimited minutes, this is at once a compelling value proposition for users and a potential threat to mobile carriers' status-quo.
In Britain, T-Mobile UK has tried to thwart the menace by blocking calls to Truphone numbers, preventing Truphone users from accepting incoming calls. But these services are bound to proliferate, and T-Mobile's blunt-edged approach is unlikely to fend off the challenge from mobile VoIP for long. (Jesse Kopelman has an in-depth look at the carriers' problems here.)
Israel's Fring offers a downloadable application that works on Windows Mobile and Symbian phones. It allows free calls to other VoIP users and charges the standard VoIP rates for calls to landlines and mobile phones. It also connects to multiple IM services like Google Talk, MSN Messenger, and ICQ. (CrunchGear has a review here)
North Bridge Venture Partners led the round, which included VenFind LTD and Fring's existing investors, Pitango Venture Capital, Veritas Venture Partners, and Yossi Vardi.