Last week, V-ENABLE got a big score. The company announced a deal with MetroPCS Communications (NYSE: PCS) to provide a mobile 411 service, which is based on a monthly payment. Keep in mind that the typical wireless operator may charge as much as $2 per 411 call. To get some more perspective on things -- and the 411 sector -- I had a chance to interview Dipanshu Sharma, who is the founder of V-ENABLE.
Q: How are things at V-Enable? What are you seeing in the free 411 marketplace?
A: V-Enable is doing quite well. Life at V-Enable is busier than ever. V-Enable is in the center of a business that is in transition. 411 is an age-old business and had not seen much innovation for decades. With the advent of local advertising shifting from yellow book to internet and now to mobile, the 411 business is seeing its share of innovation. There are three business models that are currently being practiced
1. Regular $1.50-$1.79 per 411 call (declining)
2. Unlimited 411 calling for a fixed price $2.99-$3.99
3. Free Directory Assistance (advertising supported)
Both unlimited and FREE DA models are seeing fast growth. The unlimited model allows users to talk to the operator without any annoying voice advertising and also limiting how much users spend on 411 per month. Free models takes all the cost away but users have to deal with voice ads.
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