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Strange Bedfellows?! Verizon Wireless announces support of Skype mobile


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Verizon Wireless and Skype announced a strategic partnership that, beginning March 25th, will allow unlimited Skype to Skype calling on nine Verizon Wireless 3G smart phones.

Initially, the Skype mobile application will allow users to:
" Make and receive unlimited Skype-to-Skype voice calls to any Skype contact
" Send and receive unlimited instant messages with other Skype users
" Manage the Skype contact list directly from the mobile applications
" Call international phone numbers at low Skype rates

Verizon will support Skype on the following Smartphone models out of the gates:
" Blackberry: Storm 9550, Storm2 9550, Curve 8330, 8530, 8830 World Edition, Tour 9630
" Motorola: DROID, DEVOUR
" HTC: DROID ERIS

Yankee Groups Take :

" Very interesting move by Verizon who have clearly chosen to put strategic focus on 3G data service differentiation even though, ironically, the voice portion of the Skype service will be delivered on Verizons 3G voice RAN. At the press conference, Verizon claimed the decision to forgo native VoIP to the handset was based on the coverage and reliability of the Verizon 3G voice network and not because of spectrum efficiency.

" This partnership represents a key shift in strategy for Verizon who historically resisted the idea of opening networks to 3rd party application providers although that stance is changing. Unconfirmed speculation is that the deal is indeed exclusive for a period of 2-3 years.

" While there is some real risk to core Verizon voice revenue, much of that risk is mitigated by shrinking revenues attributed to international long-distance and the growth of smart phone data plans. Verizon customers who attempt to Skype-out to U.S. based telephone numbers will be billed against their existing Verizon minute plans—an important caveat for potential users to understand.

" Verizon surely looks at the free and exclusive Skype application as a key feather in its cap vs. AT&T with iPHONE AND a key driver to sell mobile data plans given the requirement that subscribers must have one to use the application. This agreement gives VZW a leg up on AT&T and Apple who presently only support Skype on the iPHONE over wifi access, not the AT&T 3G voice/data radio network which greatly limits mobility.

" This partnership represents a boon for Skype who will surely see growing network effects of having a partner with 91M subscribers and nationwide coverage [albeit only a fraction of those subscribers using 3G smartphones]. The benefits of the combination of mobility and Skype are pretty obvious given that the current usage model for most Skype users is one of appointment calling i.e. Hey make sure you are at your PC at 6:00, Ill Skype ya. The always on and mobility aspect of the application will greatly enhance the utility of Skype which adds to its brand value, acceptance, and revenues.

" Those of us who watch the IMS/RCS space are forced to scratch our heads and ponder the implications this might have on the adoption of RCS. Rich Communication Services, which are enabled by IMS, are positioned to deliver on many of the same dynamic features inherent in the Skype platform. Many of us believe that telecom operators could use RCS to build their own central position around the dynamic, presence enabled address book. This move seems to at least water down that type of position for Verizon, but I’m interested in what you think??

//

SOURCE


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