Skype is (finally) teaming up with mobile handset maker Nokia to get its VoIP and IM software program pre-installed on some of Nokia’s devices, as announced at the Mobile World Congress and reported by MobileCrunch. The eBay-owned company had 405 million registered users in total at the end of last year, and Nokia is still the largest handset maker in the world until further notice, so this is a significant deal.
Of course, the operators won’t be jumping up and down from joy over the news.
The first Nokia device to get the Skype integration will be the N97, beginning in Q3 of 2009, followed by (unnamed but reportedly high-end) N-series devices. Leveraging N97’s WiFi and 3G connectivity, users will be able to communicate with Skype-to-Skype voice calls, as well as make mobile and landline Skype calls at reasonable prices. We should note that Sony Ericsson already has some sort of solution for Skype by offering a ‘panel’ for the app on its Xperia X1 device (which runs Windows Mobile 6.1), and Skype already had a mobile ‘lite’ version in beta which works fine on compatible LG, Motorola, Nokia, Samsung and Sony Ericsson phones.
Bringing Skype’s internet calling app on-board is one thing, but I am more excited about the presence management. The fact that the application will tap into your contact list to see who else is online or not, and enable you to chat with your friends and co-workers either by voice or text instantly, is a powerful feature.
But what does this mean for those mobile VoIP startups for whom one of the prime reasons of existence in the first place is supporting Skype functionality on mobile handsets, like fring, Nimbuzz and Truphone?
I got in touch with executives at all three startups to get a reaction on the news. Unsurprisingly, they call the move a validation of their services and are confident they won’t be pushed aside any time soon.
Tobias Kemper, Head of Communications at Nimbuzz, says the fact that Skype will come pre-installed on mobile devices is actually going to help normalize the use of VoIP applications (and particularly Skype) and thus boost their own growth. He also added that the integrated approach of Nimbuzz, which combines a variety of voice and text chat services into one app, is still in demand.
Geraldine Wilson, CEO of Truphone, says much of the same by declaring that this will only increase the awareness and uptake of these kinds of VoIP applications on mobile, which is good for Truphone too. She also cites the interoperability with Skype in combination with support for other communication services to be a big advantage for their users.
I’ll update this post with fring’s view as soon as it gets in, but you should also read up on what iSkoot is doing by moving beyond Skype for mobile phones with the release of a more general application.
I agree that bringing Skype to a select number of Nokia devices isn’t going to ‘kill’ any of the service providers I mentioned, and the aggregation of communication services is still a very good selling point in a world were people are connected through multiple social networks and instant messaging clients. That said, for the VoIP part it won’t get any better than having Skype pre-installed on a phone that links up your contacts to the application instantly. While companies like fring, Nimbuzz and Truphone are scrambling to turn their fast-growing legion of users into a profitable business, Skype has more runtime and more leverage to push free internet calling to mobile phone users.
But as I mentioned before, the carriers are not going to be happily standing on the sidelines as things progress.
Sorry, since twitter was not mentioned in this article, I ‘ll mention it: twitter
That is funny..
lol
As much as I am happy with Skype on a PC, I could never make my Netgear Skype/Wifi phone work. Every call was dropping. Hopefully Nokia/Skype will work better.
I have used the Skype phone in Hong Kong and UK. This is a Skype branded mobile phone offered only by Hutchison 3G
It is not bad, but 3 disabled some features like Skypeout, so I decided to revert to Fring on my N95 instead.
Anjali Sen
the interface on the screenshot looks awful – can’t believe skype would release any UI that plain and boring.
as mentioned, we’ll see how far this goes once the carriers get wind of this – especially if you are able to IM everyone in your address book instead of paying for the SMS fees…
I agree, the UI on that thing is horrible.
There is only one reason why one would want to use the data channel (ie, VOIP) to make a phone call on a handset: to save money.
So that means the ENTIRE value proposition of wireless is it’s cheaper. One pricing change on the part of the carriers will eliminate that advantage.
VOIP on cell phones has a role only for international calls where in-country PPTs have monopolistic pricing control. Ironically, as VOIP increases in popularity it will hasten its demise. In the developed world, the marginal cost (net of rent-like tariffs) of cell transport is no more than VOIP traffic. The cell carriers can meet VOIP’s rates with one pricing change.
Fring et all are dead as VOIP carriers.
The carriers just become the ISPs… It’s inevitable anyway right? They entice their consumers with shiny new (exclusive at times) handsets, get their 24 month contracts… What more do they want? Where else are we going to go? They should be more threatened by Broadband ubiquity – WiFi / WiMax / etc…
Only today we were discussing skype on mobile phones on Twitter, that the revolution can only happen when the operators embrace the ecosystem as a whole.
If they don’t learn from Nokia, they will only have their rugs (calls) pulled away from underneath them, as avid Skype fans (or skint startups) use Truphone/Fring/Nimbuzz, or whatever services we can to get skype onto our phones, to collaborate with our teams for FREE – as we should with the proliferation of VOIP.
Good luck to Skype (E-Bay), and may the World Talk for Free.
@Patrick we’ve been bypassing SMS fees on mobile phones for years w/ the likes of yahoo, aim and gchat. this doesn’t seem much different to me.
SMS will remain cental to the mobile phone experience for the foreseeable future until both of the following take palce;
1) WIFI is truly *everywhere*
2) *Everyone* has a smartphone w/ skype
Skype should do it already, I love skype, and I don’t care about the UI. All I want is make a VoIP call through skype.
why won’t skype allow the use of wifi on either android or the iphone?
Prolly not Skype who is leaving that out. it’s most likely AT&T and T-Mobile who don’t want users to bypass their wireless minutes entirely.
I really think this is a smart move for skype, I mean look at what they’ve done for the non-VoIP industry http://tr.im/gk8j
Are you sure about 405 million registered users? This number looks incredibly high for me (roughly 1/17 of Earth population have an account, it seems).
Finally, I’ve used it on my previous windows mobile before and have been waiting to use it for my Nokia phone now. That’s really great news.
I don’t know how you can write an article about VOIP and not include a mention of CMC.
No mention if Skype video is supported. Probably not.
Is this going to run on 3G, or is it going to require Wi-Fi like Fring on the iPhone. Because, contrary to mikeS above comment that “WIFI is truly *everywhere*”… he’s clearly never been to Japan.
I think that people should be able to talk – for free – on their phones without having to use special software. Why does software have to be the barrier to entry?
Mainstream folks won’t even consider using software on their phones. My service (FreeVoiceLine.com) doesn’t require software at all, much less on your phone.
Sometimes I wonder if they (Skype, Nokia) are thinking about mainstream users, or if they are simply trying to fill a niche need.
Considering that Twitter (yeah, I know) was mentioned at the beginning of the comments list on this post, I’d like to ask you folks about something…
What kind of benefit would it bring to you if you are a twitter user who can instantly call your friends with the click of a button on their profile? FreeVoiceLine.com has an open API, and I’m considering approaching Twitter to have them integrate it into their site, but only of course if there is a desire to have such a feature – what do you people think?
I’m confused by this new announcement. I have been using skype on my nokia navigator for ages and have been very happy with it.
I have no clue that after this deal what will be the future of Skype ? one thing i can see there is an opportunity for the competitors i.e. fring,truephone,Jajah, and vopium But how its a long story
if they support skype video than it will be news. with 3 network in the UK and fring/skype on Nokia n95 at least this isn’t a new thing for consumers. the mobile companies still make you buy a “Data” plan on top of your regular plan to enable skype..
There is another startup in this space: http://rf.com
http://techbus.com/
As far as I know in the US, carriers have ultimate say on what apps get the green light, not device makers (even Apple)
its clearly an Opportunity For Mobile VoIP Startups