Skype boosts results for exclusive operators

[mobaholic]

3 UK says 80% of its Skypephone customers are new, and have low churn

Good news for operators like Verizon Wireless, which have thrown their lot in with Skype rather than fighting the open web tide.  The pioneer of cellco-Skype deals, 3 UK, claims the arrangement has brought it a massive boost to earnings.

Research by CSS Insight showed that the benefits of Skype - or rather, the way 3 has marketed the service - have far outweighed the much-feared cannibalization of conventional voice revenues.  Nearly 80% of 3 UK's Skype users over the past year are new to the company, and on average, they deliver 20% higher ARPU and 14% lower churn than the rest of 3's base (this might not be as marked at some other cellcos, since 3 tends to focus on prepaid and lower priced user profiles).

Skype's EMEA market development director, Enrico Noseda, told Mobile Today: "Our deal with 3 UK has been extremely successful.  There is great satisfaction on both sides.  This is evidence that Skype is an opportunity rather than a threat to carriers.  Skype users are clearly much more active communicators than non-Skype users."

However, Skype is clearly aware of the value of choosing carriers carefully rather than going for a scattergun approach.  Though few operators actually block the service any more, only a handful has offered active support, including an optimized application and free calls over 3G - and so these tend to promote such a rare differentiator aggressively.  The first was E-Plus in Germany almost five years ago, and Verizon has been the most high profile.  3 has launched Skype-branded handsets, made by sister company INQ and designed to deliver a smooth VoIP experience, and included Skype in many of its most appealing bundles and propositions.

Noseda is clearly aware of the benefit of making such a difference to a carrier.  "I am not sure we would go ahead with different players in one country," he said in the interview.

However, the Skype offering could get slightly less attractive from next year, when there are plans to start charging for Skype-to-Skype calls on 3G, as well as coming under pressure from the looming Google Voice for Android.  Critics claim Skype and 3 will be breaking the promise of "free Skype-to-Skype calls forever".

Source:-   TheRegister.

[Graham]

If 3G start charging for Skype-to-Skype calls, it will be an absolute disgrace! Perhaps an online campaign should be set up now to put pressure on 3, in order to demonstrate  customer outrage that this is even being considered.

[NewStarter]

However, the Skype offering could get slightly less attractive from next year, when there are plans to start charging for Skype-to-Skype calls on 3G, as well as coming under pressure from the looming Google Voice for Android.  Critics claim Skype and 3 will be breaking the promise of "free Skype-to-Skype calls forever".

Agree with Graham.. Not a good development!! 

[petkow]

If 3G start charging for Skype-to-Skype calls....

Just to be clear, remember that the network is not "3G" but just "3". Let's call it "Three" to avoid confusion. 3G refers to the technology of transmitting data! 3G data is available to users around the world, on multiple networks. So it is not "3G" who will start charging for calls. If anything it will the network "Three" or Skype themselves. This charge will impact everyone around the world who uses Skype via 3G mobile, not just the customers of Three in the UK.

However, the Skype offering could get slightly less attractive from next year, when there are plans to start charging for Skype-to-Skype calls on 3G, as well as coming under pressure from the looming Google Voice for Android.  Critics claim Skype and 3 will be breaking the promise of "free Skype-to-Skype calls forever".

The last statement is a little bit confusing. Remember that Skype calls on Three are not even actually handled by 3G data, but as an ordinary voice call via a masked number. This is therefore a superior service to Skype-over-3G (or even Skype-over-WiFI) which other users on other networks have to contend with.

The charging aspect is also unclear so far. From what I have read it is actually Skype themselves that want to start charging for Skype-to-Skype calls that are placed via 3G data, irrespective of whatever operator you are using. For example, I am on o2, and also make use of free Skype-to-Skype calls. I too will be subject to the same charge if I chose to continue using Skype. The new charge (from early 2011) will take the form of a small monthly fee being charged by Skype. Skype argue that this cost has come in to support the development of its apps, especially for the growing demand of the iPhone 2.0 Skype app.
http://www.iphonehacks.com/2010/05/skype-2-finally-allows-voip-calls-over-3g-skype-to-charge-monthly-fee-from-2011.html
http://www.zdnet.com/blog/apple/skype-to-charge-for-3g-calls-wait-what-updated/7046

However, it is not clear whether this will even impact users on network Three in the UK, who firstly do not even place calls via 3G, and secondly as Three used to market a rock solid promise stating "Free Skype Calls forever". (Of late, I have noticed that these specific words no longer seem to appear on their website).  

The other thing that is also worth noting is that it is possible to make other types of VoIP calls (non-Skype) over 3G which may well remain absolutely free over 3G data. Now Skype has long thought that they can do whatever they want due to their huge market share, which includes a growing possy of extremely gullible iPhone geeks. However, I can see plenty of customers who primarily make peer2peer calls to other VoIP customers simply voting with their feet once Skype introduce this completely daft and unjustified charge. They will also come under pressure to keep it free, if Google voice really takes off as planned on Android, and if that remains free.

[Graham]

Thanks for your correction, Petkow. I was indeed meaning Three UK..I'm afraid "3 G" has stuck in my mind since I made my first Three top-up, when a man serving in the shop kept referring to "3 G." (!) You are also quite right to point out that Skype calls on Three UK do not use VoIP but are, in fact, ordinary voice calls which use a special undisclosed number, so it will be interesting to see what Three end up doing.

Thanks for all the other interesting points you've made. Incidentally, I have seen an online advert today on Yahoo.co.uk's homepage for Three Pay as You Go sims still clearly stating "free Skype calls forever."

[petkow]

Thanks Graham. Interesting that Three are still marketing it that way. I really cannot see why they would change that in the immediate future.

Skype are in serious trouble of late, as they are struggling to make money. Too many people basically just use their free services. Like other VoIP suppliers, they make most of their money off people who need to call back into PSTN. Their real problem is that few people are interested in these, as Skype sell hopelessly expensive packages, and their PAYG rates are pathetic.