Time Warner Cable Makes Calls to Mexico Free - Reaching Out to Latinos as WhatsApp Threatens Status Quo
With dirt-cheap international messaging apps like WhatsApp coming to prominence, thanks to Facebook's not-so-cheap acquisition of the company, the pressure is on telecoms to keep their customers, like many Latinos, who frequently communicate across borders. Time Warner Cable (which also provides phone service) is responding with free calls to Mexico.
"Staying in touch with family and friends just got a whole lot easier," said Jay Gormley, TWC's director of content production in the company's announcement, "especially for our nation's fastest growing population. Time Warner Cable is expanding its 'Unlimited Home Phone National Plan' to include free calls to Mexico."
With the expansion, calls to Mexico are treated the same way as long-distance calls which apply to anywhere in the U.S., Canada, Puerto Rico, Guam, and the U.S. Virgin Islands -- which are also included and unlimited, under the plan, no matter what time.
"The expansion of our most popular Phone plan to include unlimited calls to Mexico will bring huge value to the millions of TWC Home Phone users who have friends and family in Mexico," said Jeff Lindsay, General Manager for Home Phone at TWC in the company's release. "We're excited to offer truly unlimited calling to Mexico as part of our main calling plan."
In its announcement, TWC touted leaders of Latino organizations that praised the addition of Mexico to the plan which otherwise includes the U.S., its territories, and Canada. "Commitment to family is central to Latino communities," said national executive director of the League of United Latin American Citizens (LULAC) Brent A. Wilkes. "LULAC greatly appreciates Time Warner Cable's leadership in using its technology in innovative ways and offering affordable solutions that help families stay connected. This will have a tangible impact for Latino families across the country."
President of the National Hispanic Caucus of State Legislators (NHCSL) Eduardo Bhatia also stated, "NHCSL commends Time Warner Cable on its new service. Family is the nexus of the Latino community; NHCSL appreciates commitments from the private sector to lowering costs for hard working families as they remain connected to those outside of the United States."
WhatsApp's Challenge
The popularity of WhatsApp, an internet-based messaging service that allows unlimited international texting for $1 per year (not including the data cost), and its recent acquisition by giant Facebook for a record $19 billion, has put the pressure on legacy communications services.
Facebook's CEO Mark Zuckerberg believes WhatsApp is on track to hit a billion users, and combined with the billion-plus Facebookers worldwide, the messaging service represents a big threat to status quo international communication.
That threat has already led AT&T to give subscribers to its Mobile Share plan free international texting to 190 countries. Verizon's recent "More Everything" announcement included the same new feature.
And WhatsApp/Facebook's threat to legacy communications industries recently became exponentially bigger, when WhatsApp's head announced at Mobile World Congress 2014 that the app would begin featuring unlimited international voice calls over the internet for the same $1 per annum fee.
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