Free Newsletter
Skype on Nokia N97 invokes wrath of carriers
Free newsletter via e-mail
Tools
O2 and Orange are reportedly quite unhappy about Nokia's plans to bundle Skype onto its flagship N97 device. The two mobile carriers may not stock the N97 or any future N-series phone loaded with Skype, so either Skype goes, or the phone goes.
The report from Mobile Today says the fight is around ownership of the customer, as well as the potential lost revenue from calls routed through Skype rather than through the carrier. One operator is quoted as saying "‘This is another example of [Nokia] trying to build an ecosystem that is all about Nokia and reduces the operator to a dumb pipe...Nokia has tried several ways to own the customer over the years and operators have had to say no."
Other UK operators seem to be content to work with Skype, with T-Mobile offering its support for a Skype-loaded N97 and mobile carrier 3 already having a handset with a Skype client. An unnamed source defined Nokia's position and noted that 3 has done well by its Skype-loaded phone.
Mobile carriers are no doubt more than a little nervous at Skype's continued proliferation into what used to be a pristine space to make money before all this fancy data/client stuff appeared to cut into roaming and international calling profits. Not to mention all the high-profile lobbying Skype is doing to promote open networks and network neutrality.
On the other side of the coin, mobile VoIP players have to be unnerved that Skype continues to crunch into their space with a bigger brand and landing deals with Nokia and Sony Ericsson. Carriers and the mobile VoIP firms are likely to be conducting some backroom "The enemy-of-my-enemy" discussions if they can work out terms without cutting each other's throats in the process.
For more:
- MobileToday UK calls it. Post.
Related articles
Skype embeds on Nokia, Sony-Ericsson phones - FierceVoIP
Fear the Skype - FierceVoIP
More stories about Mobile VoIP Mobile Carriers sony ericsson Skype orange Open Networks o2 Nokia N Series
Comments
Posted by Anonymous | February 28, 2009 - 2:36am
The comment "own the customer" reeks of arrogance.
Posted by Ankur | February 28, 2009 - 4:32am
Skype loaded on mobile is a natural response to customers' demand. Communication will keep getting cheaper and better. It is a natural check on the free hand that operators have enjoyed in maintaining their unreasonable pricing till now.
Cheers!
Posted by Doug Mohney | February 28, 2009 - 2:16pm
I hate to defend this, but "Own the customer" is a legit concern in some respects -- especially if you don't want to end up being a dumb-pipe service.
Posted by Anonymous | April 4, 2009 - 12:35pm
ya right, the phone companies are just pissed THEY dont own you. thats there turf and skype is walking on it
Posted by Olu | March 1, 2009 - 12:09pm
I think that with the introduction of skype on mobile phones such as the Nokia N97 is good for the market and industry because competition is encouraged in free market economies and everybody is out there to do their best and the consumer is the ultimate winner by having a variety of choices to make to meet their demands.At the same time,it helps to cut back all those unscrupulous pricing and charges by some of these mobile operators.
Posted by Jonathan Ye | March 2, 2009 - 3:29am
Also carriers that offer these various calling alternatives or bundle/brand their services with external mobile voip operators stand to benefit in the long run from increased customer loyalty compared to those that don't (Orange/O2).
Smaller Mobile voip/voice operators like this company out of Canada and Singapore (Packetera Communications Inc's itokk.mobi - mobile voip solutions) have one distinct advantage and business model - they can offer marketing partners and other communication service providers ala Jajah's white label solution:
A lower, more realistic investment to entry, revenue share and of course the flexibility and willingness to work with subscriber and membership only entities such as real estate networks, dating and travel sites, smaller Carriers, Cables Cos, ISPs, ITSPs etc. This being said, an optimistic and valuable approach to retaining and attracting new customers with voice, regardless of the industry you're in.
Posted by Anonymous | March 2, 2009 - 12:30pm
Once again the mobile carriers show their true colors. They state that Nokia is trying to make it "...all about them with the carriers just being a dumb pipe." Well, I got news for them - they are just a pipe. Just like my internet or LD carrier. It is about the customer and customer service, not who OWNS the customer. If a phone vendor comes out with a device that gives me more options and has the ability to save me money, especially in the current climate, then I want to use it and I would be extremely upset with my carrier if they didn't allow it because they were too greedy.
At the end of the day you treat customers fairly, provide good service at a fair rate, and good customer service and you build customer LOYALTY, not OWNERSHIP.
Posted by mark | March 2, 2009 - 4:25pm
Please forgive my somewhat "knee jerk" comment here, but, though it is completely understandable that cxr's would want to guard market share etc. in the final analysis they do not "own" customers, but "serve" customers. Should the value (perceived or real) that access / openness to skype etc. out pace the value that these cxrs offer they will loose the opportunity to serve these customers and the associated benefits (market share, advertising, profit etc.) to a "T-Mo". If it is not happening they may consider negotiating relationships with Nokia and skype etc, for power plays may not work forever.
Posted by IvoG | March 4, 2009 - 10:08am
Ha Ha I have skype on my N80IE since 2007 that's why we have Fring. Nokia just decided to use skype directly. what is so wrong with that, anyway Skype or Live hotmail or Google talk there is always way arround the expencive communication that. The future is in VoIP. The carriers try to rip us of especially like prices $2 per min for rouming and etc.
Comments (12) | Post a comment