America’s largest mobile phone network Verizon has announced that it is currently working on a deal to enable putting Skype Technologies internet calling technology into mobile phones on their system. The move will provide users with a method of making free calls via 3G wireless networks, a ploy which Verizon hopes will retain market share from rival AT&T.
Whilst no official details of the venture were revealed, both Skype and Verizon said that they would be holding a joint conference at the Mobile World Congress on 16th February. Frost & Sullivan’s analysts Vanessa Alvarez expressed that it was a good move by Verizon who, as call demand begins to slow, looks for other ways to entice consumers. “It’s a big win for Skype,” she said, adding “The wireless operators and incumbent service providers are starting to think differently and accept these types of partnerships. Others are going to follow.”
The method has already been used in Hong Kong by Hutchison Whampoa Ltd who began offered Skype incorporated phones in 2007 and has noted increased retention and increased numbers of customers. It is an act which Verizon hope to follow as AT&T, who retain exclusive rights to Apple’s iPhone and are the second largest network in the U.S, begins to close the gap between market share. With 520 million Skype users, research firm IDC’s Rebecca Swensen believes it may give the company the edge. “What’s important is that Verizon understands that, at some point, they are going to be losing voice minutes to the data world. This makes their platform more valuable for end-users. It could be a differentiator for Verizon Wireless,” she explained.
