Skype Embraced By Major Mobile Company
Since its launch in August 2003, Skype has become one of the most used applications for communicating with other people. The principle behind Skype is quite simple : you download a Skype client and then you can talk with other Skype users by sending data packages that contain sound information. The encoding/decoding of the data is done almost instantly, so that it’s like placing a regular phone call. There are currently more than 400 million Skype accounts created from around the world.It is completely free to “call” other users that have a Skype client installed on their computer. But because you can transmit data through the use of a 3G connection on your mobile phone, Skype has become a real threat to your regular mobile phone companies. This is why most of these companies do not allow Skype calls to be performed trough their data transfer service.
On March 31 2009, a free Skype application for iPhone OS has been available for download on iTunes. Every user that had access to a Wi-Fi network could call similar users using Skype. This was a big step towards blending Skype with regular calls.
Today, 3 UK, a 3G wireless operator has launched a new way of dealing with Skype calls. All users that currently possess a 3 UK handset and have bought data plans (that are more expensive than your basic voice data plans) can buy a Skype enabled SIM card for only $3. This will allow these users to place Skype-to-Skype calls anywhere around the world. And, to top this off, starting with May 1, there will be no additional charges for using Skype on the 3UK network (you won’t pay for the additional traffic). In addition, 3 UK is planning to release this SIM card for everyone with a 3G compatible phone, not only for their own users.
This is a very bold move, considering the way other mobile companies treat Skype. It was probably inevitable that a company will make this move and try to profit as much as possible from this new feature. Frank Meehan, executive at 3UK stated :
“The Skype phone makes us more margin than any other phone in pre-paid with the exception of the iPhone. About 65 percent of the UK market is prepaid and only 5 percent of those are using data. We also have a massive churn in prepaid in all markets where prepaid exists. So we basically told people, if you spend 10 pounds a month and top it off every month, you get Skype for free. That’s driven incredible loyalty to the device. We have a huge level of top-offs and we’re seeing growth on voice and text on those devices. So we built everything into the address book and you’re always logged into Skype and everything is integrated so that ease of use is integrated, and that’s driving usage. It works and it’s very profitable for us.”
It remains to be seen if other major mobile companies will react to this move, but it safe to say that this will ultimately lead only to the benefit of the common user.
