UK Operators not keen on Nokia / Skype deal

March 2nd, 2009 Tags: , , , , , , , , , , , , ,

N97 & Skype

After we covered the news that Skype will be pre-installed on many Nokia smartphones, including the Nokia N97, it seems some UK network operators aren’t so keen on this news, with Mobile Today reporting that O2 and Orange have both indicated they will not stock phones with Skype built into the firmware.

Well, although this has picked up as a big news story, we’re not so sure.  Firstly, if Nokia adds Skype into every high-end smartphone it produces from this Summer onwards, these networks will look pretty second rate if they have to stop stocking all Nokia smartphones.  Secondly, it’s possible to install Skype onto these devices today, and with the launch of the Ovi Store (to replace the current Download! App) this Summer, it’s likely that Skype, TruPhone and fring will all be easily accessible from within the Ovi Store.  However, it appears the operators are claiming it’s that extra step of actually pre-installing on the phone that these operators take offence at.

If you ask us whether this will stop them stocking these phones, the answer has to be no.

We have already seen at least one UK operator ask Nokia to remove the SIP/VOIP client and support from their operator specific branded firmwares in the past, and if the networks objecting to Skype maintain their anti-Skype position, they will simply continue to request these VOIP applications are removed from their firmwares too (although whether they will have sufficient sway to get it removed from the Ovi Store for these devices as well we’re not too sure).

However, doing this will simply encourage more people to “rebrand” their phones as generic models, and then they will be free to utilise the Skype client anyway (rebranding does not affect the SIM lock status, so the phone is tied to the network it was brought on, and of course, it does not remove the contractual commitment the user has signed up to either, so this does not even impact the network’s revenue).

On the plus side, T-Mobile and 3UK seem to be supporting the Nokia initiative, although 3UK’s current Skype offering, which allows outgoing calls to be made via SkypeOUT does not allow you to use the service for UK mobile and landline calls, a limitation that may not be possible to control with a full Skype client…

One interesting snippet from the Mobile Today article; “The row centres around ownership of the customer, as well as potential lost revenue”; others have said the networks are scared they will simply become dumb internet pipes; it’s time these companies realised the customer was key, and they want to have more flexibility and openness from the networks (including the removal of the term “unlimited” for capped offerings).

In fact, maybe that’s the answer; if the mobile network offered better value for money, and reduced their call and data charges (both for UK calls, international calls and even calls whilst roaming), maybe their customers would not look twice at Skype, and would stay loyal to the network.  How about it guys? … actually start caring more about your existing customers, instead of always chasing after new customers at the expense of the ones you lose each month.

Update: It also appears part of the problem will be that the Skype call options will appear directly in the Contacts app, as additional options, so the mobile networks are worried instead of placing a video call (at great expense across their network), people will use their “unlimited” data tariffs and select the “Skype video call” option instead.  Well, here’s the thing; we don’t “do” video calls because of the price, so again, simply make it more cost effective to use your services and we won’t think twice about those additional Skype options…


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