Established in 2001, Hermes Phone is a leading provider of prepaid phone-to-phone and PC-to-phone services. The company s target customers are Central and Eastern Europe nationals, located in USA, UK or Canada.
Since the launch of its prepaid call services Hermes Phone has become the leading telecom provider to those destinations due to the successful deployment of its low-cost, high-quality service strategy.
There were two market specifics that lead Hermes Phone founders to believe that there will be a significant demand for a low-cost calling service for the destination of Central and Eastern Europe:
- The severe economical and social crisis that started in the early 1990 s became the reason for an emigrant wave to the West
- Since 1998, the Work & Travel programs for students from the region became very popular and an increasing number of young people started spending their summer vacations in USA and UK
Both of these consumer groups had the need for frequent long-distance calls to their homes and at the same time were especially price sensitive.
That appeared to be a lucrative customer niche that could be successfully filled out by the low-cost IP telephony. However, being a niche player in the VoIP business, introduced the challenge of providing a highly customized service to the end-customer and reducing costs as much as possible.