Borderless Phones Investors for $10M

Hoping to work its way into an ethnic telecom niche under the radar of industry giants like Nokia and Telecom, Borderless Communications has sent out proposals on a $10 million first-round funding.

The offering is structured as an immediate $5 million investment with additional capital to be added while the company grows. Mark McCarroll, general partner at Borderless, said that the deal could be closed by late this week, probably with a corporate venture partner.

Such expediency could prove a significant boon to Borderless as it begins to market its Internet-based product to Vietnamese residents in the test markets of Dallas, Houston and Los Angeles. More specifically, the company aims to lower the telephone charges associated with calling Vietnam from the U.S. by utilizing existing infrastructure to implement voice transmissions over IP rather than over traditional telephone cables.

“We will offer subscribers a way for them to call family and friends back in Vietnam for a much lower cost than they pay now… [a savings of] around $150 a month on average,” McCarroll said. He added that customers will pay a monthly subscription fee and, in return, receive the equivalent of a prepaid phone card accompanied by a toll-free number.

What makes Borderless unique, according to the funding prospectus, is that it has already developed a partnership with the Vietnamese government while other companies are simply working on systems that link T-1 lines from home offices in the U.S. to satellite offices in Vietnam. McCarroll explained that the business-to-government relationship was cemented when he helped facilitate the sale of needed hospital equipment to Vietnamese medical facilities.