Gratistelefon Svenska AB, a Stockholm-based firm, is planning a worldwide expansion of its free telephone service, which is funded by advertisements interrupting the calls. Gratistelefon – which translates as FreePhone – has already signed up an Australian company, trading as FreeFone Australia Ltd, and has another lined up in the Philippines. It claims to be holding negotiations with buyers in 23 different countries, including other Nordic countries, France, Germany and the US. Gratistelefon has been running a trial system for 30,000 subscribers in the Southern Swedish city of Lund since November of last year, through local operator Tele2 AB and says it’s in final negotiations with partners to launch a first commercial service very soon. The company’s software, which it sells for around $150,000 for a 100,000 subscriber system, enables telephone operators to offer customers free telephone services that are funded by advertisements interrupting calls at set intervals – the Swedish service offers a ten second advertisement every two minutes. The 12-person firm is looking for additional funding and considering an initial public offering.
