Nilanjana Bhowmik

With all the news about iPhones and mobile content lately we thought we’d check in with Cellufun CEO Arthur Goikhman. Arthur heads up an ad-sponsored mobile gaming company that provides free games and content for web-enabled mobile phones. It’s a market segment that is growing rapidly, which is one reason why we decided to invest in the Company. Last month, Cellufun had 3 million unique visitors and more than 22 million page views. The Company continues to experience success with plans to launch new games in the near future. Arthur agreed to answer our questions about Cellufun and the dynamics of the mobile market

Q: Since Cellufun was founded in 2005 what changes have you witnessed in the mobile market?

Arthur: Major changes have occurred in several areas. First, the walled garden has continued eroding with many carriers offering all you can eat data plans and Google and Paypal taking significant steps towards mobile transaction processing. Second, there has been tremendous growth in the importance of, if not yet the dollars spent on, mobile advertising and the creation of a number of startups in the space. And lastly, with companies such as ESPN, Amp’d and Disney, the rise and fall of the Mobile Virtual Network Operator (MVNO) model is a significant factor in the space.

Q: Cellfun is based on a social networking business model. What was behind this decision?

Arthur: From the beginning we were about multiplayer and connected games. League and team formation occur naturally in that kind of gaming environment. From that to social networking is in fact a quick leap, one that we made as soon as we started shipping product and observing user behavior.

Q: In the age of social networking mobile phones are a viable option for social networking and the potential is really just being tapped. How has the response been from users?

Arthur: One of the most popular features we have in our new MobilePet myPhone game is having your friends visit and play with your pet. This kind of interaction tends to take off like wildfire on the phone.

Q: Have the most popular games been mind games such as Chess or Sudoku or the interactive games such as MobilePet? Has this surprised you at all?

Arthur: They have somewhat different profiles and audiences. In terms of overall numbers, MobilePet has been by far the most popular game.

Q: On Cellufun’s Web site you offer ratings and high scores. Do you find the mobile games are directing people back to your Web site? Can users interact over Cellufun’s Web site or just through the games?

Arthur: Users interact primarily over Cellufun’s WAP site and directly within certain games, like Chess. Our Web site has been less of a factor, but we expect that to change with the launch of The Mobile Ring, our new game.

Q: For the MobilePet games you offer a penguin and even myphone, a pet phone to help those with gadget envy who don’t have the iPhone. Which one is more popular?

Arthur: Perhaps unsurprisingly, MobilePet Dog is by far the most popular overall. Of course since the launch, MobilePet myPhone has been getting all the attention. We had kids begging parents for their phones during company parties last week.

Q: Lastly, if mobile social networking is now what is next?

Arthur: On the technology side, I find expanding WiFi support for phones to be really exciting. I am very happy to see both the iPhone and T-Mobile’s recent offerings emphasize that. This kind of hybrid network should help speed up interactive content. I think expanding GPS/location options can play a significant role in entertainment as well. The carriers are also talking up video (both calling and entertainment content). And of course we’d all love to be able to use a mobile phone to pay for products.

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