Why Phone Service Should Be Free with Derek Ting

What if the frustration of a college student with a phone bill became the seed of a company serving 10 million people?

Derek Ting is a multifaceted entrepreneur and filmmaker, known as the co-founder and CEO of telecom company TextNow, offering free mobile services, and also as an actor, director, and writer of action films like Agent Recon, starring alongside Chuck Norris. A native of New York with roots in Hong Kong, he splits his time between LA and HK, blending tech innovation with entertainment..

In this episode, Derek shares the relationships that shaped his path, from a mother who sacrificed to give him access to the right environment, to a sixth-grade friend who introduced him to computers and investing, to the one investor who said yes when everyone else said no. His story is a masterclass in building something meaningful from the ground up.

 

[00:03:00] Who Is Derek Ting?

• Co-founder and CEO of TextNow, a free phone service app

• Started the company 16 years ago as a college student tired of paying for phone service

• Currently serves 10 million monthly users

[00:04:00] The Birth of TextNow

• The first iPhone charged separately for texting, calling, and data; Derek saw a better way

• Aha moment: users were turning iPod touches into phones because they couldn't afford service

• Recruited a college classmate to build out the full product; he became co-founder

[00:05:20] Phone Service Is a Necessity, Not a Luxury

• Many users had no other way to communicate with friends and family

• You need a phone number to book a doctor's appointment or apply for a job

• That realization turned a texting app into a much bigger mission

[00:07:40] From Hobby to Business: The Early App Store Days

• The iPhone SDK let anyone, including college students, build and sell software for the first time

• First app: a daily recipe app for a dollar; then a lemonade stand video game

• TextNow grew from that same spirit of building things to solve his own problems

[00:12:40] Cashflow Crisis and the Last Door He Knocked On

• Reinvested everything into carrier infrastructure, wiping out profit, then ran out of cash

• Knocked on every VC door in Canada in 2011 and collected rejection after rejection

• Remembered a man whose niece was a customer and who had mentioned he was a VC

• Reached out, met him at a conference, played it cool, and closed the deal; he is still a shareholder today

[00:17:40] Where TextNow Is Headed

• Mission from day one: make phone service completely free

• The flywheel: more free value drives more users, more advertisers, and more revenue to fund more features

• Customer base is diverse: young people, those in financial rough patches, anyone needing a second line

[00:20:40] The Relationship That Started Everything: His Mom

• Derek's biggest influence is his mother, a Hong Kong immigrant who prioritized his education above everything

• She stretched her finances to move him from public to private school in sixth grade

• That decision changed his peer group and opened doors he never would have found otherwise

[00:22:00] The Sixth-Grade Friend Who Sparked It All

• At private school Derek met a friend who was already building computers and buying stocks in sixth grade

• He learned about technology and economics simply by spending time around him

• Without that friendship, Derek believes he would never have ended up in tech or business

 

KEY QUOTES

"Phone service is expensive and it's actually not a luxury. It's a necessity. You need it to get a doctor's appointment, to apply for a job." - Derek Ting

"I was running out of doors to knock on. The last door I knocked on became the door that worked out." - Derek Ting

CONNECT WITH DEREK TING

🌐 TextNow: www.textnow.com 

💼 LinkedIn: linkedin.com/in/derekting 

📘 Facebook: facebook.com/derekting

 

Thanks for tuning in!

If you liked my show, please LEAVE A 5-STAR REVIEW, like, and subscribe!

Find me on:

Apple Podcasts | Spotify |  iHeart Radio | Stitcher