3 Lets Skype On Network Print E-mail
Written by Adam Gosling   
Tuesday, 30 October 2007
3 has befriended Skype - not only allowing free Skype to Skype calls and IM across its network., but positiviely encouraging it.



The two have announced a widespread roll-out of a new mobile / Skypephone, expected to be available locally before Christmas. The phones are a fully-featured 3G mobile phone, but has Skype built-in thanks to Qualcomm's Brew platform.

This means it can still access 3's other content services and makes normal calls too, but the Skype functionality is an added benefit. The phone has a 2 megapixel camera, mp3 player, mobile TV and internet, and weighs just 86 grams. 3 describes it as "small and shiny" and available in black or white with blue or pink trim.

The handset was developed by Skype and 3 in partnership with Qualcomm, using Qualcomm's BREW platform to enable Skype to work with core handset features such as address book and messaging.

The Skype functionality is accessed by pressing the phone's large Skype button, giving users access to 3 million registered Skype users in Australia and 246 million worldwide.

The free calls are not unlimited however, but you'll be hard pushed to use the, 4,000 minutes of free Skype to Skype calls and 10,000 free Skype chat messages each month.

"People like using Skype and enjoying free calls on their PC, so why not set Skype free on the mobile and in a way that's really easy to use," said Nigel Dews, CEO 3. "This is simply giving people what they want, and challenging the traditional phone company view that dictates customers get charged for everything they do, with access to VOIP on the mobile being essentially off limits. We believe that's fundamentally flawed and wanted to make Skype on the mobile as easy and free as it should be."

John Delaney, principal analyst at Ovum points out that 3's competitors have taken a lot of flak for their "alleged hostility towards customers using VoIP" on their networks.

"Now here comes 3, not only encouraging its customers to use VoIP, but bending over backwards to make it easy for them. That this initiative is being taken by 3 is no coincidence, of course. As the smallest and newest of the UK mobile operators, 3's best hope for growth is to disrupt the status quo wherever it can," he said.

"We think 3 might have something of a hit with the Skype Phone - albeit within a niche, unless (1) it expands the range of handsets available and (2) it makes Skype In/Out available - at present only Skype-to-Skype is supported. The package is attractive, and the cost of acquiring it is low. The phone is cheap at £50 but, crucially, it doesn't look or feel cheap: it has a slim, elegant design, it's nicely finished and it has a pretty good spec for its price point, including a 2 megapixel camera. In combination with the promise of ‘free phone calls', it's likely to get at least a second look from customers who haven't necessarily set their hearts on the latest from Nokia or Samsung.

"To get the Skype phone off the ground, 3 will have to do a lot more marketing follow-up than it did with the X-Series. X-Series was launched with some serious hoo-hah almost a year ago, but it hasn't been promoted very effectively since then. However, the Skype phone has two advantages over X-Series as a market proposition: it's simpler and more focused; and its target market is wider, encompassing people who just want to make phone calls, and can't/don't want to spend a lot of money on their phone," said Delaney.

"In the short term, 3 may be able to use the Skype phone effectively to boost its subscriber numbers. In the long term, though, if 3 is successful with the Skype phone, the X-Series and similar projects, it might end up creating its own strategic problems. Imagine the scenario: on your mobile phone you use Skype for phone calls, Hotmail for messaging, Google for search and directions, YouTube for TV and music. What do you need your mobile operator for? The answer could turn out to be: subsidising phones, carrying data packets, and dealing with problems & complaints. Does that add up to an attractive business?"

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