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Mobile carriers not happy about Skype on Nokia phones

Some UK providers are seeing VoIP as a threat to their businesses.

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Mobile | by Stephen Schenck | Fri Feb 27, 2009 5:11PM | 0 comments

It hasn't taken too long for mobile providers to start reacting to the news that Nokia will begin offering Skype VoIP software in some of its smartphones, and as could be expected, that reaction is largely negative. Already some British carriers are speaking out against the tie-in, obviously worried about losses from revenues due to voice plans. The backlash is likely to grow in the coming years, as phones become more and more powerful and the role of the cellular networks changes from providing services like voice calls to operating as simple data-based connections.

The hesitance to embrace cellular VoIP is widespread, but there are a few companies supporting it. In the UK, a company called 3 already features phones with Skype software. Although there are some U.S. carriers offering kinds of VoIP, they all restrict it to phones using their WiFi connections; none want voice information to be sent over their data networks.

For many years it made sense for cell companies to sell you specific services, instead of just a raw radio signal. While they started out with voice service, later years saw expansion into fields like selling access to ringtones, full music downloads, and subscription navigation services. With smartphones becoming more prevalent, and wireless data speeds increasing, it's becoming less and less necessary for cell companies to provide all these services. Why pick and choose from your phone carrier's limited music selection when you can just connect directly to iTunes?

For now, the companies are largely stubbornly clinging to their old business models. The UK providers reportedly angry with Nokia are still in discussions with the company, hoping to come to some sort of understanding. While it will probably be a slow and bumpy process, we hope this transition of cell companies into "dumb pipes" just selling network access continues making progress, ultimately benefiting you, the consumer.

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Related company news:
Nokia, Skype
Related glossary terms:
Wi-Fi, VoIP
Related devices and services:
Apple iTunes, Skype

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