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…
On 28 and 29 October 2010,
Step 2: tariffs. With an unhealthy amount of traveling abroad to do, my main cost item on phone bills regularly is data roaming, so this is where my sensitivity lies (because of the eye-watering bills I regularly get, I am not bothered about 600 or 900 UK any-network minutes costing £5 more or less), and it became clear quickly: Orange, T-Mobile and 3 are out of the race (their charges are even higher than O2′s). Vodafone looks good (about 1/3 of O2′s rates) but O2 claims to still have their Blackberry tariff for international data roaming (although I struggled to find it on their website). Now, THAT would bring my bill down by a cool £150-200 a month or so. Enter Blackberry. The
And then I started to compromise: anything exclusive to Orange, T-Mobile or 3 was out of the question (because data roaming is pretty much a killer for me), which boils it down to Blackberry and O2 or any of the others on Vodafone (which would mean that I couldn’t get what started being my favourite, the Samsung Omnia 7). Hang on: I compromise over some shoddy pounds? Is the handset then not so all important as one might have believed when reading all those blogs, news blitzes and tech publications over the last months?
The UK arm of
It is conference season and one of the more exciting ones kicks off in Berlin this week: Mobile 2.0 opens its gates on Tuesday and boasts an exceptional line-up to look at the future of mobile.
As Android continues to roll out (
After the