The GSMA Mobile World Congress is taking place right now in Barcelona, Spain. While we’re sure to see a lot of interesting information and products emerge from it, one joint venture announced at the Congress has already generated buzz across the Internet and within the wireless industry.
On Tuesday, Skype, a subsidiary of eBay, announced that it will be making its Internet calling software available on Nokia’s phones, starting with the high-end smartphones in the N-series. The first one to hit the market with Skype installed will be the N7, which goes on sale in June. Skype will be available on the phone starting in the third quarter of this year.
Another handset maker, Sony Ericsson, has also announced a partnership with Skype, making a panel for the software available on their Xperia device in mid-March.
This is great news for consumers. While domestic wireless rates have fallen dramatically over the past few years, international rates remain high. Having a phone with Skype software would allow travelers to make low-cost calls over the Internet, both on 3G and Wi-Fi networks, while outside the United States. Skype-to-Skype calls would be free. Travelers could stay in touch with friends and family without paying exorbitant international rates, or making monthly payments for international plans they use only occasionally.
That is, if American wireless carriers allow Nokia and Sony Ericsson to include Skype software on their phones. Not only would Skype take a huge bite out of international voice services, it could potentially damage domestic service as well, cutting into carriers’ profit margins.
AT&T has already allowed a few VOIP applications to be sold in the Apple iPhone App Store, but they’re not nearly as much of a threat as Skype with its more than 400 million registered users. None of the other major US carriers seem to be in any hurry to allow Skype on their phones, either. We’ll keep you posted.
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