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AT&T Can't Afford to Block Skype

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With the FCC lurking around seemingly every corner these days, AT&T's decision allowing VoIP to run over its 3G network is really not much of a surprise. Behind closed doors, the carrier may be decrying the "dumb pipe" implications of the move, but in reality it's quite simply the right thing to do, both from a consumer and a business standpoint.

While Skype is a cheap alternative for overseas calling, I can't see many iPhone users bypassing their device's native calling abilities altogether in deference of any VoIP client. For one thing, call quality and reliability still leave something to be desired.

And don't feel too bad for AT&T. Sure, it will be missing out on some overage minutes, but it's still going to require a minimum of 450 anytime minutes at $39.99 per month on any iPhone plan. And then there's the hefty $30 per month for an iPhone data plan. Of course, most customers will throw in at least 1,500 text messages for $15 per month, if not $20 for unlimited texts. If you're keeping track, we're up to $85 per month on the inside, $90 on the outside. Compare that with Sprint's Anytime plans and I'm left shaking my head.

But even AT&T realizes that this is all really about the FCC's charge to shake up the wireless industry and adopt a true spirit of openness. As Verizon Wireless chums along hand-in-hand with Android, vowing Google Voice on handsets, AT&T can't afford to stand in the corner with its arms crossed.

I'm the first to admit that wireless networks are very different than their wired cousins. I also agree with AT&T's Ralph de la Vega in his keynote at CTIA in San Diego that the American wireless industry is one of the most competitive on the globe. And yes, carriers need to be able to manage their networks. However, when I see Apple and Google trading board positions like they're spots on a playground kickball team, it's almost impossible not to wonder what really went on with Google Voice.

More to the point, we're entering an era of data. It's time we admit that in the end, carriers are going to find a way to stick consumers for what they use. And if that's the case, I'd much rather foster an environment now, at the beginning of this new era of free love and openness, where I can use what applications I want, when I want from whatever device I want.

Finally, while AT&T's VoIP announcement had all the flavor of a real headline, the truth between the lines was much less spectacular. AT&T gave Apple the go on enabling VoIP over 3G. Period. Anyone heard that Apple is rushing to connect that VoIP call?


Andrew,
AT&T's Ralph de la Vega doesn't get paid to figure out how he can increase revenue this year, but for the years to come where wireless VoIP will definitely become as good an alternative to wireless voice minutes. Then the wireless minutes and SMS $$$ will dissappear.

WirelessWeek,
Please have someone who has the expertise/experience of competition and strategy in the telecommunications sector to comment on what AT&T should be doing. Do not spoil the credibility of what readers get from Wireless Week.
Posted by: Ankur at 10/23/2009 9:46 AM


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