Tag: skype

Oh America, where art thou?

I am pretty angry, America (OK, American government; that is)! What on earth are you doing? (oh, and hello, NSA, thanks for checking in).

Let me open with Plato (Laws):

“Where the law is subject to some other authority and has none of its own, the collapse of the state, in my view, is not far off; but if law is the master of the government and the government is its slave, then the situation is full of promise and men enjoy all the blessings that the gods shower on a state.”

Those were the days, huh? Shame…

Daddy is Cheating…

You know, I have suspected for some time. But I didn’t want to believe. Lipstick on your collar? Hey, there’s a good explanation, right? Right? But now I saw you with that other girl. And, you know, she wasn’t even the gorgeous blonde where I might have grumbled but acknowledged that she’s pretty hot (sorry for the outdated simile, ladies). But what I am looking at is greed, suspicion, police state perversion. And that is not good!

So now the scene is set, let’s go. You see, I have been a loyal friend for decades. I have been working with your companies, furthered your wealth in the process, befriended your people. I am a fan of your forefathers (Jefferson and Lincoln count amongst my biggest heroes) and I defended your values (and, believe me, the latter wasn’t always easy, what with all that Bush, gun-slinging, death-penalty stuff that is often not easy to understand to Europeans). Other than being atheist, I think I’d fit (or would have fitted) right in with you (even though I’d order smaller burgers).

NSA Dragnets

And now this! So, you have been running huge dragnets, it seems (never mind the details, I will leave those to Michael Arrington); by the looks of it even the most rose-tinted version is pretty nasty).

And you also have the audacity to say that a secret court to which I cannot appeal is sufficient legal oversight. And the President (yes, I am looking at you, Mr Nobel Peace Price-winning Obama) doesn’t even dare to crawl out of his White House to defend this (being humbled wasn’t enough, it seems; you should have acted upon it!).

And then, quite besides the scale of this alone, you find it perfectly OK to just about capture everything from everyone who doesn’t happen to hold a US passport. Never mind if she has shown to be a friend of yours or not. Earthlings of a lower class we are then. You basically declare war on everyone else (because that is really what you do, right? It is OK to spy on people even to further the US cause; given your tight language these days, I take it this includes industrial espionage; I mean you were on it for a while, no?).

So, let me break this down: for me as a European (although, as far as I understand, I might as well be a war-mongering nutcase of Klingon origin), you do not think I should be afforded any rights – and not even think of the rule of law or access to courts or any such fancy stuff? Further, even as it concerns your own people, you still think secret courts to which no one can appeal and that do not publish their opinions, that have none of the “checks and balances” that made your system famous are sufficient? Are you kidding me? Have you all – after all – inhaled and, for that matter, way too much?

Friends don’t Matter

This is to the first point: So you, America, think that no one other than you matters. Friend or foe – no difference. I find this appalling. What do you think this will get you? More friends? More visitors that hatch nasty plans for your downfall? Probably the latter. You know, I do not wish you bad. But I am not sure if I will be as motivated to go out of my way the next time. Don’t you know we live on a globe (as in global – get it?) with many people and regimes that require a certain amount of goodwill, trust and – for goodness sake – decency? What do you think? That we will just swallow shallow press releases referring to dubious “we acted within the law” statements? Whose laws? Who is overseeing those? Who is testing you? Who is checking your power? Where, oh where is due process?

You see, the American constitution is a blueprint for law students all over the world because it introduced the principle that the various powers within a state need to be checked and balanced against each other. They must not bloody collude to provide some lop-sided monster! Wake up! How can it be that not vast majorities of your lawmakers are up in arms over this? How can it be that this gentle, inclusive dream of a President (yes, we all loved you very much, Mr Obama) hides behind, I don’t know what. How can it be that he not only simply carried on but – apparently (I trust the Guardian more than your press releases, Mr President) – extended this highly doubtful grip on the world’s information? How could you have drifted away so far from the path of the righteous and right? I am horrified!

I live near Manchester. That is in the UK. We have an Abraham-Lincoln-Square there. And in the middle of it is a statue of the great man with a facsimile of the letter he wrote to the workers over here. Because they suffered when America fought for its independence. And Lincoln was grateful. Mr Obama, you failed! You don’t write thank-you-letters. You’d rather read our letters and try to extract as much information as you possibly can to further whatever cause it is you are pursuing. Shame on you!

Secret Courts, Habeas Corpus & Due Process

Now then, let’s knuckle down a bit. One of the pre-eminent rights that define the pride of the US Constitution is the right to due process. Would I first have to travel to the US, get myself arrested to be able to cry habeas corpus? If this your understanding of it, make yourself acquainted with the “effet utile” or direct effect: a law (or indeed the constitution) should be interpreted such that it gives direct effect. It is – if you need a reminder – related to your very own Implied Powers doctrine. And you are now saying that this only applies to US citizens? Oh, hang on, you do. You signed the treaty but did not ratify as you

consider[…] many of the provisions of the Vienna Convention on the Law of Treaties to constitute customary international law on the law of treaties (source)

What the bloody f***? Get yourself some lawyers that think straight rather than trying to exploit every friggin’ loophole, will you? You consider it customary but don’t ratify? Huh? I’ll have some fun in that court…

What would you say if your citizens in the UK, Germany, Italy, France, Spain, etc. were being denied due process? You’d be howling. How dare we? And you? Do not give a flying [you get it].

So listen: a secret court is something for oppressive regimes, for states that have nasty stuff to hide, for the folks that you are so trigger-happy to pursue. They are NOT for enlightened democracies. Change it! Now!

The dichotomy between Sharing and Transparency is NONE

You know, I happily share stuff, I really do. I know Google scans my e-mails for keywords to serve me the “right” AdWords (it fails more often than not). That’s fine. You know why? Because they told me. It’s transparent. And that (Google and all you others, are you listening?) is the word! I am a little more suspicious about the moral compass of Mr Zuckerberg, but, hey, I’m in for the right. The thing though is this: the “contrat social” (that’s French, and, no, it’s not communist) in the digital world is one of reciprocity when it comes to being transparent. Tell me what you want to do so I can decide if I will take you up on your offer. Spying and dragnets are not included in this definition! Not by one bit (get it?)!

Your behaviour – and the obscene ignorance to the present day you show whilst displaying it – does also highlight the antiquity of ancient laws (you know that your own spying law dates from 1917, right?) when it comes to digital communications. So let’s get this straight: I use the services of Google, Facebook, Skype Apple, Amazon and Microsoft and, rarely (I’m a little old, you see), YouTube (I don’t use the others – and hadn’t even heard of PalTalk before the Guardian/Washington Post revelations). And that’s perfectly fine. I know they collect data. Because, you know, we all know they’ve got to live and there’s this great big network thing going on with ads and stuff; that’s OK. Now, am I in any way related to the US? Not really, right? I mean: I have visited but never lived there. I am working with Americans in various ways (this is not a bad thing, right?). But to treat me as a subject because my domain happens to be hosted stateside (which I guess it is), because I happen to use the above services is, frankly, ludicrous. It is like establishing an exclusive jurisdiction in China for owners of iPhones. Because, you know, that is where they actually are built. And you don’t even blink? Shame on you! Is this where your great big dream descended to? Good Lord, this is sad – and, of course, scary.

What do you want me (and all us 6.5 billion non-US-Americans) to do? Stop using the “nasty 9” plus DropBox, Evernote, Twitter, Instagram and everyone else because, you know, it can only be a matter of time before you haul them in, too? That’s great. Just great! I suspect you really believe you’ll get away with it, right? And the worst thing is that you probably will. But you haven’t understood a thing.

This is not what this was set up for. A good society – and the digital one is built on this very concept – is based on concepts of trust and reciprocity. Your cold-war antics don’t fit into this. They won’t help either. Don’t you realise that stuff gets worse, not better, the more you behave like a rogue state? You won’t be winning like this! And that would be sad. Because that was one cool dream you had!

You, America, are – can I say it? – getting paranoid about way too much stuff, America, and it spoils your good looks, you know. The country where milk and honey flows, the place where the grass is greener starts looking aged and not so bright anymore. Ruthless and reckless you appear more often these days. This is not good. Because, you know, I’d like to like you again. Your recent behaviour doesn’t do you any good whatsoever. And you, Mr President, have a whole lot of work to do to win me back!

Bad day!

PS: BlackBerry did not endorse this message. As for everything (but particularly on this post), this is my very own and personal anger…

PPS: To my American friends: you know I still love you! 🙂

Microsoft & Skype

Allegedly, this morning Microsoft will announce it will buy Skype for $8.5bn. It is Microsoft’s largest investment into the digital realm so far (and a nice cash-out for the people who bailed Skype out from eBay a while ago; the valuation at the time apparently was put at $2.75bn). Besides these being big numbers (and allowing Skype not having to worry about an IPO anymore), this opens an opportunity for a new kind of animal in the communications corner of things. And here is why:

Microsoft is legendarily late to the party when it came to smartphones. Their Windows Phone 7 OS was labelled as too little too late although it received positive reviews on the merits. Then it struck a much discussed deal with Nokia, the ailing (former?) phone giant to ship its phones with WP7. So, if we add Skype, will this create the torso of a new type of communication service? Think Nokia handset + Windows Phone 7 + Skype = mobile VoIP on a large scale.

Did we forget an ingredient though? Ah, bandwidth. Hm… Skype is understandably much maligned by most carriers (with the notable exception of Three) as it shifts revenues from (high-margin) voice to (lower-margin) data. With most carriers struggling under the increased network loads higher-end smartphones consume in terms of data, a discussion started recently about contributions for such data throughput. Now, a lot of the larger carriers are multi-play animals: be it Verizon, Vodafone, France Telekom/Orange, Deutsche Telekom/T-Mobile, Telstra, etc, etc, they all provide both mobile networks as well as fixed-line broadband. It will hence be not that easy to just walk around them and “just make it so”.

Many people have talked about the ubiquity of WiFi hotspots and such like in many areas but I would humbly suggest that this is daydreaming rather than a robust basis for a truly ubiquitous device such as a mobile phone just yet (and it perhaps never will). The future would seem to lie in mobile networks rather than fixed-line anyhow (LTE and all), which means that there will need to be some sort of rapport between vendors and service providers (such as Nokia/Microsoft/Skype) and carriers, and even mighty Nokia has already lost a fight over Skype in the past (see also here). Likewise, Google had come out with lofty promises as to carrier integration and has failed miserably to deliver the goods so far (carrier billing on Android Market anyone?).

So voices that hail the arrival of a new era might well be a little premature. Now, given that Microsoft can work with Skype on the desktop side of things as well will ease the transition significantly. However, the be-all-end-all solution it is not, at least not yet. And if Microsoft and Nokia can deliver remains to be seen, too, I guess.

Back to work then…

T-Mobile, Nokia & Skype

Nokia’s deal with Skype did not go down too favourably with German carriers T-Mobile and Vodafone, and there had been threats that they would drop the respective Nokia devices (including the long-awaited hero handset N97) from their device roadmaps. Today, T-Mobile provided some “clarification” on the issue: according to a spokesperson, T-Mobile apparently wants to ship the N97 but not with the Skype VoIP client installed (“it is up to us to decide what is on the device”).

It was also said that the carrier was looking into options on how to deal with VoIP but that it was still early days. However, T-Mobile does apparently not block VoIP clients, neither Skype nor others… Hm, this does not sound like a convincing policy to me…

To Skype or not to Skype: Nokia vs Carriers

The most excellent German blog Mobile Zeitgeist alerted me (in German) to a little battle that illustrates the pitfalls of creating the seamless user experience: Nokia appears to being in a tussle with (at least) the German arms of Vodafone and T-Mobile over the pre-installation of Skype clients on some of its forthcoming handset models (including the long-awaited iPhone competitor, N97).

Vodafone and T-Mobile Germany (who have a combined subscriber base of close to 80m) have now publicly stated that they will not include any Nokia models into their catalogues, which will have Skype installed. Now, there’s a market gone dead then… For other models, look to 3 in the UK (and my post on the Skypephone there…).
T-Mobile said that they “would not let their business be destroyed” by this. Their terms and conditions prohibited VoIP clients already but the carriers did anecdotally turn a blind eye towards this in the past. Nokia’s push however now is apparently too much for the carriers who fear network issues. Interestingly, this surfaces on the same day where, in anther part of the world, some queried the sustainability of free data plans for the iPhone (namely the Wall Street Journal on AT&T’s policies in respect of the iPhone). Predictably, Skype lambasted the move as “unfair practice”.

The name of the game is – of course – the pipe (not new: see e.g. here and here): the WSJ quotes from an Alcatel-Lucent analysis of North American networks during the midday hour of one day, which apparently shows that web browsing consumed 32% of data-related airtime but 69% of bandwidth whereas e-mail used 30% of data airtime but only 4% of bandwidth. The reasoning goes that increased data traffic impacts the networks’ capex whilst remaining – at best – ARPU-neutral (AT&T ponders to drop its data plan for the iPhone by $10), cutting down margins and hurting the carrier more than is healthy. Voice and SMS services are – on a bit for bit basis – very, very profitable as they use very little bandwidth.
To conclude though – as the WSJ does – that unlimited data plans should be abandoned “in the short term”, pours the baby out with the bathwater: smartphones are paving the way into the wireless future (20% of US households are completely wirefree already!) and it is a space where the carriers have great gains to make; maybe not on the sumptuous margins they were used to but healthy and viable nonetheless. To do as the WSJ asks would be as if one would have asked ISPs to please stop flat-rate plans for Internet access; and look what has become of the Internet!
Accordingly, other voices argue that a) slowing voice ARPU is at least being part set-off by increasing data ARPU (which grew a healthy 32% year-on-year in Q1 and saw more than $10bn in wireless data plans being sold in the US for the first time), and b) that the carriers actually know this for a while now and, accordingly, upgrade their networks to better cope with higher bandwidth demands in order to make the move to data pipes; the fight is arguably now “only” about whether these would be dumb or smart: with app stores, VAS and business-to-business (and machine-to-machine) solutions opening up vast new segments that have been completely unexploited to date, one should think that there is room for the smart pipe operator. So fear not!

3 with dedicated Skypephone

Hutchison’s 3 has had a Skype service under its X-Series for a while now but they have now announced the launch of a dedicated Skypephone, which they developed jointly with Qualcomm (to make use of some specific CDMA features) and Skype and which has dedicated Skype buttons. It is said to being produced by Chinese manufacturer Amoi. The service rolls out in the UK and Ireland from this week and will move to 3’s other territories (Austria, Australia, Denmark, Hong Kong, Italy and Switzerland) thereafter.

The move manifests where 3 sees the future value, and it is not in being paid by minute of voice used. The value clearly lies in mobile data. Now, granted, this is easier for 3 to achieve than for many other operators: 3 started as a 3G operators straight away. Their entire network is high-speed, they don’t have any old black-and-white devices hanging around anywhere, etc, etc. However, what it does show is a gutsy approach to break with tradition amongst network operators.

Can the situation be compared with the change from dial-up, pay-per-minute Internet to unlimited broadband? It probably can to an extent. What was the result of that? The change of a commodity-driven business model (bandwidth) to a service and product-driven one (e-commerce, advertising, etc) with the subsequent reduction of previously mighty ISP to mere bit pipes that delivered the data but were otherwise largely interchangeable. This is also the sore spot for network providers because they fear that this will happen to them, too. According to reports, a Skype spokesman reported that Skype was usually told to “go away” by operators, noting “obvious tension”.

I would submit though that there is actually less to fear for network operators than there was for the traditional Internet ISP because the billing relationship is – as yet – harder to replace for mobile customers than it was for the Internet customer. I believe this to being the case because of two reasons, namely a) the perceived security (perceived because it does not necessarily reflect reality), and b) the limited input mechanisms of mobile devices (punching in credit card details via your mobile’s number pad is a proper pain in the neck and nothing consumers will like to do). Due to restrictions of the screen and device size, this remains the case even if one uses smartphones with a Qwerty keyboard or touch-screen devices.

The above will not guarantee the operators’ spot forever but it will certainly make life easier for another couple of years. But then? Well, you better be well-positioned for when the inevitable happens: with most operators already starting to open data services, it can surely only be a question of time until a more liberal approach to what their customers are and are not allowed to use will appear; consumers may well ask what added value an operator had to offer.

3 UK CEO, Kevin Russell, does then expect initial “detractions” from its revenue but hopes to make up for it by adding incremental customers, not only through new additions but also reduction of churn and increased loyalty.

3 does what it has shown to be good at, namely leading change from the front: it has shown that it can sell more content than competitors with many times its market share, and whilst it might all be born frmo sheer necessity (where else would 3 turn to survice), it is good of them to again putting pressure onto the others.

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