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Skype’s “small fee” is noise guys.

iPhone 3G Calls With Skype 2.0
Image by Photo Giddy via Flickr

Sometimes you have to really shake your head at the quality of the commentary on the internet.  Fact: Skype has finally released a version of Skype for iPhone that supports calling over 3G networks.  Never mind the fly in the ointment that all the commentary is  stuck on – the fact that Skype wants to charge a “small fee” for you to use it on a 3G network.  Frankly, that’s noise.  People will pay for the ability to make a high quality Skype call on 3G, and not pay their carriers long distance termination charges in foreign markets.  So long as the fee is reasonable, nobody is going to object.

There’s no point in getting your knickers in a twist over the fee.  Skype needs to make money, like any other business, and the fact that they’re charging for this service is irrelevant to the larger story it represents.

So, what does this really mean?

  • The carriers, by permitting this use of Skype on their networks, are finally coming to grips with the fact that data is now more valuable than voice.  I wouldn’t care to speculate about whether or not the carriers will receive any of Skype’s small fee, but you can be darn sure they’re licking their chops over the data plans they’ll be selling.
  • Andy Abramson wrote last week that analyst firms are predicting mobile VoIP to overtake traditional telephone service. Mobile VoIP just got a huge shot in the arm. Any skepticism about that claim as been roundly dismissed today.
  • Skype’s SILK codec just gained dramatic credibility as it proliferates to millions of handsets.  This will put serious pressure on royalty bearing wideband codecs, as vendors will find Skype’s royalty free approach increasingly attractive.
  • When iPhone OS 4.0 finally ships, minute revenues for carriers may take an even greater hit as millions of Skype on iPhone users keep Skype running continuously in the background to receive incoming calls as well as making outgoing calls.

All in all, this one small change by Skype is a portent of a huge potential shift in the power base of the communications industry.  Not bad for a five year old band of bad boys from Estonia.  Not bad at all.

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{ 2 comments… add one }

  • Andrew June 1, 2010, 12:20 am

    I agree. Now Skype hasn't said what a small fee is, but having paid for a Skype-In number, I'm sure it will be worth it.

    The real value, however, will be with iPhone 4.0. With 3.0, not being able to have Skype "always-on" – is the one feature that hurts the offering for me

  • justinbryan June 4, 2010, 12:46 pm

    its a good news for everyone who likes to listen commentary and voice on web. This will make skype more popular among users.

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