Others News
- Skype going mobile via Whampoa's subsidiary 3
Date: 31-Oct-2007 Sources: (Shenzhen Daily)
BEIJING, Oct. 30 (Xinhuanet) -- Don't need a computer, headset or cable anymore because Skype is going mobile across Europe via the new 'Skype Phone' from Hutchison Whampoa's wireless subsidiary 3.
Britain will be the first country to give the new device a try Friday. It will eventually be available across Europe and Asia by the end of the year. The handset will retail for 102.92 U.S. dollars as part of a prepay package -- or for free with a contract -- and includes 3G functionality, a music player, wireless Internet and a 2 megapixel camera.
The move will surely rile 3's rivals in Britain, from Vodafone to France Telecom's Orange, which have tried to come up with their own low-cost Internet telephony packages to rival third-party applications like Skype. Operators are anxious to protect their returns on the high cost of 3G licenses and investment, and free calling services are a threat.
'As the smallest and newest of the U.K. mobile operators, 3's best hope for growth is to disrupt the status quo wherever it can,' said John Delaney, analyst with Ovum Research. 'We think 3 might have something of a hit with the Skype Phone.'
The attraction of Skype is entirely due to its low prices, with calls between users free of charge and at a discount for calls to non-users. But the price gap between Skype and its competitors could narrow if operators cut tariffs, and the Skype phone might not convert many nonusers: calls to non-Skype users are only available via the 3 network, rather than via Skype's discount-rate service.
'As the free service only works between customers using similarly-branded Skype phones, failure to win a critical mass 'seed' customer base will confine the service to the dustbin of history,' said Emeka Obiodu, analyst with Global Insight.
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