Future global data connectivity without worrying about your costs, with Guy Zbarsky of Keepgo, Israel

Episode Notes

• Why Keepgo is an exciting company (for me)
• Problem they’re targeting – offering an alternative to the rip-off scheme by others
• Beginnings of Keepgo and its multiple pivots
• Virtual SIM technology to replace plastic SIM cards?
• Different virtual SIM technology standards
• What virtual SIM technology has to do with Airbnb
• Timeline Guy expects for virtual SIM’s adoption by the public and the bright future for all of us to make extra money
• Keepgo’s past and current uniqueness on the market
• Business tools Guy uses to manage his company
• The wisdom Guy would take back to his 20-year-old self
• His favorite book he uses for his business
• Guy’s daily habits and how they help him (re-)focus
• Cultural differences he highlights and how he thinks we can overcome those
• Guy’s last bit of advice, take home message – why you should start a business

Contact

• Facebook: https://www.facebook.com/KeepGo.Web2Go
• Linkedin: https://www.linkedin.com/company/keepgo
• Twitter: @keepgo

Episode Transcript

Future global data connectivity without worrying about your costs, with Guy Zbarsky of Keepgo, Israel

Why Keepgo is an exciting company (for me)

I'm quite excited as a discussions with you, with you guys during and after the trade show were rather interesting to start with. Nowadays many of us fly around very easily because the cost of travel is going down, you know, in recent years, it went down, it has gone down tremendously. It's not uncommon these days, that it's cheaper to fly then to take the train even for shorter distances. If we fly, it means we travel outside our country of residence oftentimes. So even to faraway places. I love to travel both privately and professionally. So this is a very interesting topic for me your business and you know, when we travel, like for longer distances, and many times, frequently, many times, my own memories come into my mind vividly, the world travel that I did a few years ago, when I bought different SIM cards to be able to cover my data consumption needs for my phone via my phone. And, you know, I ran into this problem, which was my pain point that I had to deal with. Sometimes if I didn't change the card with the roaming problems, and when I actually changed to the local SIM card I had to deal with the pain of getting the card going to a local dealer or right at the airport.

Problem they’re targeting – offering an alternative to the rip-off scheme by others

Well Keepgo, our current business basically addresses the roaming problem and problem of travelers around the globe and trying to find a proper solution for their internet mobile data needs. So our current product basically offers connectivity all around the globe, with very easy setup and a very, very good, cheap prices.

Beginnings of Keepgo and its multiple pivots

Yes, sure. You won't believe it. But we started about 9 - 10 years ago when the first smartphones were introduced to the market. I know it sounds, you know, like the first smartphones were introduced 20 or 30 or 50 years ago, but actually first smartphone, which was iPhone 3G was introduced to the market and became commercially available in 2008, 13 years ago. It's difficult to believe that, you know, 10 years after we have like the whole population of the planet using smartphones. Well, maybe, except for some rare, you know, areas, but most of the developed countries, all the people that know smartphones was in only 10 years, not to mention all the app, you know, like Snapchat and WhatsApp, WeChat and Ways and the Google Maps and others that we have not seen that only 10 years ago. So the technology is moving very fast and telecom industry and we started with my partner nine years ago, when basically those first iPhone 3G became commercially available. We, we love gadgets, and we bought those devices. And then we suddenly understood that a smartphone can be a great system during travellers, for travellers, you know, during your travels beforehand, if you remember, people were usually not taking the standard feature phone with them when they were going abroad because it was very expensive to use, no data, no internet, basically, you don't need your device, you know, your voice standard feature phone device when you're going abroad. And people just were leaving the devices, the phones feature phones at home. And then the last smartphones arrived to the market. And we aim as my partner were like, hey, wow, this would be very cool. We probably we expect from now on that people will be traveling abroad with smartphones, that's probably what will happen. So what we need is very funny, we checked, you know, destination where most of the travellers were going and we found that were the most easy destination for us also because of English language, which was United States travellers going to the United Kingdom. So well, I went to UK and my partner went to United States I bought, you know, 10 iPhones with local SIM card and I sent them to my partner the United States and he started to rent them out. And they were, you know, standard beginning I would say it was out of any funds, just our own money and actually was where we recover very quickly, very popular by a couple of months, we were break even and more destination became were relevant. So we started to provide, to rent iPhones to more destination. And not only that, we also started to tailor the smartphone per customer destination. So for example, if you were going to Japan, we were bringing styling for you Japanese from Slater and Japanese maps and no, you know, like that recommendation, restaurant recommendation and all local apps for your travel to Japan with the local Japanese SIM card. Well, yeah, so this was our initial model, a model we have started this as mentioned, we are we were bootstrapped. And then we became breakeven in one year. But approximately in 2010, the rental model became more unpopular and went down very significantly because people started to buy their own smartphones, they don't need us anymore. They all had smartphones, but they didn't have the local SIM cards or local bundles. If you remember back in 2010, network operators were not offering any data bundles roaming. Data roaming was extremely expensive, yeah, it was like $10 per megabyte $20 - $50 per megabyte very expensive, a role like home solution or cheap roaming bundles were not introduced to the market yet. So we have pivoted from renting iPhones to basically selling data SIM cards. We still had those local SIM cards from different destinations and we pivoted into selling a local SIM cards to people who were traveling and this also became even more popular so we switched into different models we started to offer different bundles European bundles, world bundle, data only bundle, no data only bundle, you know different options. And later on, we switched to different data connectivity solutions for businesses, not only for B2C for for travelers, say but also for businesses and therefore IT, for machines. It was a natural switch and nowadays so we officially represent so many big network operators, like AT&T, like Telefonica, Vodafone, T-Mobile, we are partnering with all those companies, we have bilateral agreements with them, we offer their services, and we can provide basically any type of connectivity to any device anywhere on the globe. That's the situation now a days.

Virtual SIM technology to replace plastic SIM cards?

Yes of course, well, we have all always been, me and my partner we are both engineers. So we are always into this R&D and developing some technologies in this area in our niche. So the very beginning we have developed a couple of sophisticated aggregation portals and systems. So all our services are easily monitored online and you can track all the usage and you can track all the devices and if you're a b2b customer you can track all your employees traveling and using the data, etc, etc. At some point, approximately three, four years ago, we have started you know, we have started to plan, what are the team should be doing in the upcoming years. And our vision was that telecom industry will be switching approximately in 2020 into SIMless devices which means the standard plastic SIM card that we are used to is getting outdated. Plastic SIM card, it's technology that was invented in 1991, about 30 years ago. And it's really outdated. You know, all the telecom is moving forward, feature phones, smartphones, 3G, 4G 5G and so on, but SIM cards, we still use the same technology. So as we invented it in 2020, approximately, smartphone manufacturers will start working on devices with our SIM card. And we ourselves started to work on the standard, so-called SIMless standard, which is devices without a SIM card. So about one year ago, we had finished our development that we have developed hotspot, a virtual SIM hotspot, it's basically it's a hotspot and connect to any carrier around the globe without a SIM card, without any agreement without any contract. We just press the button and the device is connected with the best connectivity and the best coverage because virtual SIM, but we call it basically the technology, name, virtual SIM and we have successfully developed it about one year ago. It's commercial, commercially available, and we do sell it now. So that's that was basically the development that we were in the last three years.

Different virtual SIM technology standards

Well, the biggest difference of our technology so-called virtual SIM standard and EC standard is that EC requires agreement of operator and not on the agreement, it requires a operator to disclose, basically to disclose the private keys of the potential customers, let's say this way. So if I want to create a SIM card, and to use EC standard, and I want to have a let's say, Vodafone profile of this SIM card, I need Vodafone to cooperate with me and cooperate on a very deep level. And with virtual SIM I don't need this type of cooperation. With virtual SIM at the present time what I have is this SIM banks which are in the data center and I just go to kiosk I just buy 1000 SIM cards I plug all those SIM cards into those SIM banks and the profile of those SIM card is virtually transferred into potential device. So in my case is establishing a agreement was operator basically providing coverage in your destination. It's available simple story, I just have to find a provider there is somebody who is willing to sell me a SIM cards. It can be a bigger network operator, virtual network operator, it will be a some kind of local reseller, local provider, I just buy from him hundreds of SIM cards and I'm ready to provide coverage in the new destination. With EC it works way, way, way more difficult, therefore with EC usually you see less destinations covered and less operators involved into this project.

What virtual SIM technology has to do with Airbnb

Well, the issue is the following: technologically it is already possible. Technology is already there. Okay. So basically, starting 2017, starting last year, it is possible technologically. Now, the question is, first of all: can all the gadget manufacturers adopt this technology. So let's say, from approximately two years from now, most of the devices will adopt SIM-free technology, and we will not use plastic SIM cards. So starting two years from now, we will not have plastic SIM cards. And I would say approximately 1-2 years after that so let's say 2022, we will have those Amazons for mobile data and we will have those Ebays for mobile data, and we will have those UBERS or Airbnbs and you name it for mobile data.

Timeline Guy expects for virtual SIM’s adoption by the public and the bright future for all of us to make extra money

This technology we do see, this technology is being adopted. We do see multiple standards being adopted as well. And, for example, a GS Americanization nowadays are working on eSIM standard, which is also some kind of programmable SIM card that does not requires physical plastic SIM card and you already see it in some devices like smart watches, and even the Apple iPad, they're not using plastic SIM card, they're using a programmable those eSIM, and other SIM cards, etc. So we do believe that in 2020 more and more devices, more and more manufacturers will create devices without a plastic SIM card and basically yes, plastic SIM cards, consider it dead technology that is going nowhere and very soon, we will not use them at all. So that's how we envision it. And once again, you can see it already happens. And the question is, say, where do we see ourselves in this industry and in this Telecom, this rapid change. So that's basically our new project that was introduced in Amsterdam at a conference. The issue is that once you have those non plastic SIM cards, so-called Virtual SIM cards, SIMless devices, you can create the ability, basically technologically it’s possible for people to exchange their mobile data, so for example, if you have a device with virtual SIM card, you can give me your virtual SIM card over there temporarily for one day for two days, for one month for any amount of time. You're one that I'll give you back the SIM card well okay yes and this is possible and once again as possible for mobile data solely because you know if we're talking about voice then if you give me your SIM card basically get your your phone number as well but when data you don't have a phone number, you know people not calling you this data so it's not a big deal but basically this technology can be in different implementations but what we see and how we envision the future basically a future as shared telecom so-called. We head about shared economy.

Keepgo’s past and current uniqueness on the market

Well, it was unique say two or three years ago. But nowadays say there are, I would say, about a dozen companies that are doing different virtual SIM technologies, different standards, different implementations. It basically becomes a commodity and you see more and more different devices, with virtual SIM technology being used on the market and being sold on the market. So it becomes a commodity, it's not the super innovative technology anymore. Yeah, you know, it was innovative one year in 2017. But the telecom industry, as mentioned, you know, 10 years ago was when the first smartphone was introduced. So one year it's like, it's a huge period., so one year after, it's already not a super innovator technology. It is innovative yet, of course, but you'll see more and more companies doing this, this kind of services and this kind of R&D.

Business tools Guy uses to manage his company

Well, first of all, enjoy your work. It's not a tool, but it's the basic concept that you should start from. And always, you know, think about work as, but whatever you're doing is, you know, as fun as educational, even though in many cases, it's very difficult and in many cases, it requires, you know, a lot of energy from you, and requires a lot of, you know, it's not so easy, it looks like, but the bottom line, just enjoy what you're doing. That's the key, that's the key. And that's the basis and if you are not enjoying what you're doing, it will be very difficult, because, you know, especially in startups, you should be 150% dedicated to what you're doing. And then you have basically almost every day in your obstacle that you should overcome. And if you're not enjoying, and you're not fully dedicated, it will be very, very difficult to overcome those obstacles. So just start with developing this passion. And that's the basis but tools, professional tools that we're using a well, the most popular tools is Trello, okay, I really enjoy this tool. It's very convenient, very intuitive. And I do like working with Trello. And I do like working also with Slack, which is a communication tool. It also integrates very well, with Trello, it's easy to monitor everything. I would say those are two most popular and now I'm trying to get used to Ok, Google tool, which works pretty good. And I'm starting to use it. It's very convenient, you know, to write notes, to call forever. ok, Google. Google assistant. So I'm trying. I was trying, you know, testing innovative tools.

The wisdom Guy would take back to his 20-year-old self

Well, be prepared for a little roller coaster, but always stay positive

His favorite book he uses for his business

Well, it's very difficult to name one. But I would advise Tim Ferriss' Four Hour Workweek.

Guy’s daily habits and how they help him (re-)focus

Yes, of course, of course. First of all, I do karate and it helps me a lot because it's a lot of similarity in some way, a lot of similarity in karate, and business. In karate, you're working hard on overcoming obstacles in some way and to achieve your belts, you know, Green Belt, brown belt, black belt, etc, etc, etc. and you have a certain track so, and also in karate, you do some meditation and you do some relaxation and you do some fights which all those skills I use a business and you know, I feel it's very funny but when I before a fight karate I feel about the same what I'm feeling before negotiation with somebody. Okay, I'm very focused I'm very nervous I'm very this and that very same feelings before you know important negotiations and the fight in karate so I'm doing twice a week Karate which very helps me and also in business it's another aspect of karate, in business it's very difficult to relax, to forget about your work for a while. So you're always involved, you always think about it, you always think about what should I do next, how can I resolve this problem or what what what should I do here and there was this and then so on and so on. So in Karate it's it's really a way for me to relax and not to think about the work you know, because if during the fight I'm thinking about anything else but the fights I just get some punch in my head and you know very quickly focus back on the fight and not on the work. So after after those two hours trainings I feel very fresh and feel very energetic and I feel very clean and wellrested because I was not thinking about my business for the whole two hours wow it's really a lot.

Cultural differences he highlights and how he thinks we can overcome those

Well, cultural differences nowadays becomes more and more relevant for all of us because of globalization, because we work internationally. It's not only that we have a team in the Netherlands itself, it's also we have different freelancers in different countries, from United States, Australia, we had a long-term partnership with Japanese partners and, and more and more, but still, I'm going back here to values and all over the globe, people have, can share same values. So for example, in some countries integrity is more important and in others it's less important. But once you find people with same values, you know, the cultural differences are less relevant. So I would say be loyal to yourself, okay. Don't try to behave like a French person in France and Japanese person in Japan. It will not work anyway. But if you are loyal to yourself and loyal to your your values, you will overcome any inter-country, inter-cultural difference. You can work with any person anywhere around the globe. If you're share the same values, and once again integrity, working hard, bringing results, you know, being good to your customers, etc, etc. That's what I'm talking about.

Guy’s last bit of advice, take home message – why you should start a business

Well, it's a difficult question but I would encourage people to go and start their own businesses. It's very interesting, it's very challenging it's you know in some ways like having kids on one side having kids it's challenging, it's not commercially profitable but still people have kids because of fun, because of the love, alive because you know when somebody can say that you have missed you know your if your do your lifetime checklist what the person should do during his lifetime kids definitely one of those checklists. You can argue or cannot argue, but you know, if you have lived your life without kids it's like you have not checkmarked one point in this checklist. So business is about the same for me. I have both kids and a business so I believe that you know, living life and not starting at some point your own business, even a small one, even for a short time even you know, to understand that it's not yours but still doing it for for half a year for one year trying to do the business it's very important I believe and I believe that every person should experience in his life short or long period of being a businessman and it's good not only for this person it's very good basically for the humanity because basically when you're a businessman, you're basically in some way you are moving the human and you're moving them forward in some way you're you're driving the economy you're doing good to the people in some way. So be good to the people, drive the economy forward, experience being the businessman it's very good then. Good luck to all.