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Skype on Verizon: a step ahead of AT&T for VoIP users?
Verizon has announced that in March, its smartphone users will be able to make VoIP calls using Skype without burning through cellular minutes -- the calls will be covered under Verizon's data plans. This is in sharp contrast to AT&T;, which only supports VoIP calls over Wi-Fi connections. Verizon is expecting increased data plan subscriptions to cancel out any revenues lost to free Skype calls. Do you think AT&T; and other carriers can or will match this move? Will it make a difference to you and your business?
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9 Answers
Definitely agree with the title of your post, Michael. Pretty hard to make money when calls are being routed off-net via WiFi. With Skype out of the bag, the role of voice starts to shift now for wireless operators, and is more valuable for its stickiness to drive usage of data plans than it is on its own. I'd be remiss to not pass on the link to my article about this last week... http://voip-phone-systems.tmcnet.com/topics/voip-phone-systems/articles/76181...
Micheal,
That could be quite a shift in the way businesses think about there telecom expenses..in the long run of course. Verizon and ATT both have unlimited plans (69.99) and unlimited data plans (29.99), so this push is obviously to get people more dependent on their cell phones in the long run (and extend contracts) so they can push more content apps to you. Network is already built out...the next piece is can I Skype with my Camera? That would be cool.
Perhaps I am missing the point here or our view towards convergence and voice in Europe is vastly different to that in the US but, why the surprise?
Isnt this (and wasnt it always?) the "natural" intent and progression of voice to become a service that was bundled with data offerings? If not, then why the vast and gigantic drive for 3G, convergence, xSP providers, IPv6 and the demise of legacy networks? Isn't it obvious that the "web" would become in itself a communications backbone that delivered, connected and captured most if not all forms of communication?
I believe this is just the advent of the great circle of telecoms (is this term still pertinent these days?) that will wind up with the general masses being provided less-than-quality services by anyone with a server in their garage and such current giants as AT&T and Verizon providing more quality services (guaranteed bandwidth, guaranteed network availability, carrier-grade quality of voice etc) as more costly premium rate services. This is inevitable. The only other option for these companies to a) make money and b) keep up with the technology offering is to "own" the types of services being offered.
Perhaps in the future the likes of Apple and AT&T may form strategic partnerships where if you want to be able to use your latest Apple iSLRCameraCommunicator you can only do it on a subscription with AT&T.. ;-) Now there's a thought! (thanks Cris!)
As I understand it, what Verizon are doing is technologically the same as the tie-up that Skype have with "3" (Hutchison 3G) in the UK. The voice calls actually still use the cellular voice channel, like a conventional call, but then this is routed to Skype via a gateway. The billing system is setup to zero-rate voice calls that go through this gateway.
What "3" say publicly about this service is that churn is significantly down (since the customers can't get the same service via Vodafone, O2 etc), and that ARPU is higher than for standard PAYG users. They communicate more (SMS, voice) since it "feels like free".
I wish Verizon luck with this. 3 have a clear differentiation against their competitors in the UK, and Verizon could too.
Martyn Davies is correct about the infrastructure. The voice channel is used for the voice call; data channel is used for IM (presence and chat) as well as "call signaling" to set up a call. The actual VoIP session is set up at a Skype gateway which then calls other Skype contacts (free, with no termination charge to Verizon, or paid using SkypeOut, whether a calling plan subscription or Skype credits).
I have written three posts about this deal; they are listed at http://voiceontheweb.biz/tag/verizon/. The conference call post makes some interesting points about smartphone app stores.
Every operator will finally do what 'the first one' did when they see it will bring in more money, It is that simple.
Like in The Netherlands, the Mobile operators loose 'some' on the normal telephone calls but gain on the flatfee data packets that they offer.
Every operator here offers flatfee Internet on smartphones for Eur 9,99 ($ 13.50) and we as VoIP operator like that. That indeed makes a difference to our business in a positive way of course.
All smartphones can use Mobile dialers like fring, NimBuzz, Adore Softphone or the built-in SIP stacks at Nokia + Win Mobile.
So we welcome this change with open arms and in the end the calls WILL be terminated to the PSTN + mobile networks by the same parties like AT&T......which meanse everybody keeps on making money but with a shifted business model.....
More information on Mobile VoIP?
Take a look at our website: http://www.xeloq.com/#/website/categorie/1723/mobile-voip
Have a nice day!
Milko van den Wollenberg
Managing Director XeloQ Communications Internet Telephony
http://www.XeloQ.eu
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Can you make business calls to other users this way? Can they call you or is it only calls to people registered with Skype?
This is an increasingly focussed concern for all operators globally. But however, VoIP is the next generation communication. The operators, if keep the main focus on the money making schema, this would lead to the fact that users will somehow find a way to use them, maybe with wi-fi, or with other proxy solutions. So, instead of trying to stop the flow of development in the communication areana, it would be a better gameplan if the operators play along with them, and make the best out of it. In this regard, I would thus definitely say that Verizon made a wise decision, and am quite sure that the others will follow. Apart from everything else, it might be worth mentioning, that the GSM and CDMA speech has an interleaved coding, which does not provide optimal performance with data connections, Thus, even though these operators are allowing the port access for VoIP communication from the mobile phones, people with extended demand would still go for alternative solutions, which may still be the IP phones, using wi-fi, or simple ISD dialling from the phones.
It actually CAN be done for business. A type of Skype for business application would use a gsm/cdma multi-channel cellular gateway as trunking from the PBX. With an app such as the Avaya one-X mobile lite, you get free cell calls on your corporate switch.
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