Zact Wants To Change What You Pay For Cellular Services

NEW YORK ( TheStreet) - Dr. Greg Raleigh wants to change how and what you pay for your smartphone services. His new venture called Zact also aims to lower your monthly bill.

Zact is launching today and currently utilizes Sprint's ( S) 3G and 4G/LTE networks but can be also be used by any other provider on the planet. The difference here is how these services are offered.

Raleigh seems to know exactly what he's doing when it comes to cellular stuff. He's been involved in a number of previous technology companies like Clarity Wireless (now Cisco ( CSCO)) and Airgo (now Qualcomm ( QCOM)). According to his bio, he "invented core technology in 4G/LTE devices as well as developing the Wi-fi standards known as 802.11n and 802.11ac". I've spoken with him. He knows his stuff.

Raleigh is the founder of the California-based company called ItsOn - a group of experts trying to change the way mobile services are delivered and consumed. ItsOn is privately-held and is funded by Andreessen Horowitz, SV Angel, Verizon ( VZ), Vodafone ( VOD), and Best Buy ( BBY). In addition to selling their new ideas to other companies, ItsOn decided to market a cloud-based service of their own - Zact - to show everyone how it could/should be done.

Zact wants to change what you pay for your monthly cell phone service. The idea is simple. You'll be able to pick and choose each and every facet of your monthly service - such voice calls, SMS, and mobile Web - and pay for what you want and need. If you see you're going over your chosen allotment of minutes or messages or data you can adjust your account on your phone - on the fly.

For instance, say you're at 300 minutes (or however much you choose) of voice and there's another week to go in the month. You can adjust your Zact account accordingly. On the fly. On your phone. Right then and there. Whether you need more or fewer services you make the changes yourself. Just need email and not other Web services? There is an option for that too.

If you own a business, large or small, think what this kind of control could save on a monthly basis.

Want to make sure your children don't abuse their privileges? You can block their use of certain services or programs. Or, when they can use their phones (like during school or study hours). Or, who they can call and when. Everything is adjustable.

Here is the best part, during the company's beta testing they found that monthly service charges were approximately $31 per month (before taxes). They also guarantee that you'll never overpay. Zact promises to automatically credit money back to your account so that you wind-up paying for the "plan increment that would have fit you best".

At pre-launch, starting today, Zact will will work on two (unsubsidized) LG Google Android ( GOOG) handsets that you'll need to purchase outright - the Optimus Elite ($199) and the Viper 4G LTE ($399). The phones are expected to begin shipping next month,

Dr. Raleigh told me that the service was created to be cellular-standard agnostic - which means it could also be adapted for Apple's ( AAPL) iOS and Microsoft's ( MSFT) Windows Phones or any other platform if someone was interested.

He said they're in talks with other cellular providers, around the world, about creating similar offerings for their customers based on Zact technologies. He said he'd let us know when there was something official to announce.

--Written by Gary Krakow in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

Gary Krakow is TheStreet's senior technology correspondent.

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