Thursday, February 18, 2010

Skype and Verizon

With the new agreement between Skype and Verizon, some analysts are speculating that the penetration of Internet phone call providers into cellular operators' network might speed up in the future.

In the US, Skype is blocked on mobile networks, and the service is available only on the Apple iPhone over Wi-Fi. AT&T, the exclusive American carrier for the iPhone, has said that it would allow Skype and voice-over-Internet-protocol services to operate its 3G network, but Skype has not made an application available.

In Europe, Skype is carried by the company 3 in Britain, Ireland, Austria, Denmark, Italy and Sweden. But many other cellular operators still block its calls, prohibit their customers from downloading Skype's software or outlaw the use of VoIP service in standard sales contracts. Some carriers are imposing fees to undermine Skype's attraction.

However, the barriers to Skype and similar Internet calling services, like Google Voice, are coming under increasing scrutiny as the Internet goes mobile. By 2013, the number of Internet-ready mobile phones will surpass the number of computers in the world for the first time, according to Gartner, a research firm.

In the United States, last July the federal Communications Commission asked Apple to explain why it had not approved Google Voice, an application that lets callers circumvent mobile network calling charges, for the iPhone. Apple told the FCC that it was studying Google's application. Carriers in the United States could have more difficulty blocking VoIP services as they introduce 4G data networks, faster than 3G.

Skype's deal with Verizon Wireless, the largest United States carrier, may make the service more available. In exchange for access to its 3G network, Verizon attached many conditions to its agreement with Skype. Skype users will have to buy voice and data plans from Verizon and also one of nine smartphones sold by the operator. Also, any Skype calls placed to United States residents who do not have Skype accounts will be deducted from the caller's package of Verizon voice minutes. Calls placed outside the United States and domestic calls to Skype users will be free.

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