Scratch Wireless: Cambridge Startup Vows to Make Mobile Service Free. Rolls Out Android Device

Cambridge-based startup, Scratch Wireless is shaking up the cell phone world. Talk about bold, disruptive moves, this team is taking on the likes of Verizon Wireless, AT&T and Sprint.

By offering up free talk, text and data Scratch Wireless wants to ensure you never pay for mobile service again. Who can’t get behind that?

Investors such as CommonAngels Ventures and several other prominent angels are among those that have gotten behind the movement

Earlier this week, Scratch Wireless announced the release of the Coolpad Arise, a new Scratch-enabled Android smartphone. The smartphone, available for $99, is equipped with the groundbreaking Scratch Wireless service, which lets consumers access unlimited free talk, text and data over Wi-Fi networks, without ever signing a contract or paying a penny for service.

I caught up with Scratch Wireless Co-Founder and CEO, Alan Berrey, to learn more about the startup’s early journey and what’s ahead for this team attacking a mega-market.

VF: Alan, simplify this for our readers — What is Scratch Wireless?

Scratch Wireless is the world’s first truly free mobile service. We are able to offer this service by leveraging the growing number of Wi-Fi hotspots available in homes, schools, offices and countless public places and only leveraging cellular networks to fill in the gaps, an approach we call Wi-Fi First.

When consumers buy the Scratch-enabled smartphone — right now, the Coolpad Arise for $99 — they can then use it for free over existing Wi-Fi networks and can text for free even when there is no Wi-Fi. That’s it. You can bring your old number with you, and if you need to make a call or use data when you’re not in Wi-Fi, you can buy a pass (which start at $1.99). But you never have to buy anything if you don’t want to. Texting — which is what most people use predominantly, anyway — is always free. In fact, Scratch’s current customers already are “living free,” with two thirds of users not paying a penny for service in any given month.

VF: Free mobile service seems too good to be true. Do you see that sentiment a lot and has it hindered early traction at all?

When you buy a tablet or laptop, you connect it to Wi-Fi and use it for free. So, why not smartphones too? Once consumers think about it like that, they tend to get it and really embrace it since it just makes sense. Since our launch in January 2014 we have been incredibly lucky to receive a strong and excited response from consumers looking to move away from the traditional high-priced monthly plan offered by carrier giants like AT&T and Verizon. In recent months, major tech and cable players, like Google and Cablevision, have introduced Wi-Fi based services further validating our market, which has increased the traction for Wi-Fi First in leading the future of wireless communications.

VF: Can you speak to the traction Scratch has seen thus far?

Before Tuesday’s launch, Scratch was operating under an invitation-only wall in order to control the flow of devices. Over the last 18 months, we have received interest from tens of thousands of consumers looking to purchase a device, and are extremely optimistic about the traction we will see in the coming weeks and months now that we have general availability with the Coolpad device.

VF: Can you share how did this idea come about and what made you and your founding team jump into this head on?

My co-founder Eric Giler and I both recognized the growing prevalence of Wi-Fi in our daily lives — from the workplace to home and schools, Wi-Fi is everywhere. However, no one seemed to be taking advantage of these connections to improve wireless communications in the cellular sector. And as a parent, I knew firsthand how expensive the typical family plan is. So we decided to build a phone company from the ground up. We designed Scratch Wireless to disrupt the current carrier-dominated telecom market and offer consumers a free option for staying connected on smartphones that include all the messaging, apps and gaming capabilities users have come to expect.

VF: You’re going up against some major players (that’s what makes it fun, right?). With that in mind, what can we expect from Scratch moving forward — short-term and long?

We are thrilled to see the Wi-First market heat up in recent weeks and months, as it further demonstrates that the wireless market is ripe for disruption and validates the model we’ve been working towards for the last few years.

Our focus at Scratch is to remain hyper-focused on offering consumers the best wireless service possible. In the coming months we plan to introduce a number of additional devices at varying price points to give consumers more personalized options to best fit their needs. As a long term goal, we plan to bring our service to new markets and spread the Wi-Fi First revolution across the globe.

VF: Availability — Where and how can people get Scratch Wireless?

Consumers can pre-order the Coolpad Arise device on our website for $99, which will begin shipping in mid-June.

Josh Boyle is Director of Marketing & Community, VentureFizz. You can follow him on Twitter @jb_sid and keep up with his latest posts by signing up for the VentureFizz Weekly Email!