Skype for iPhone Sparks Battle Between Consumers and Carriers

[MacRumors]

The release of an official Skype application for the iPhone appears to have been controversial for both mobile carriers and consumers. The Voice-Over-IP software allows iPhone users to make phone calls over Wi-Fi to other Skype users or even to regular landline phones. Obviously, such functionality could compete with mobile carrier's own voice services.

As a concession, Apple has prevented the use of such applications over cellular data networks (EDGE or 3G) and only officially allows it to run on Wi-Fi. (Strangely, several readers have noticed that the Skype application presently does work over 3G when running beta iPhone 3.0 firmware, but that may simply be an oversight on the part of Apple.)

T-Mobile in Germany, however, threatened that it may take action to prevent its customers from using Skype on the iPhone. On the flip side, an open-Internet advocacy group is asking the FCC to see if AT&T and Apple are violating federal rules by restricting Skype to just Wi-Fi.

Free Press and other consumer advocates want the FCC to affirm that so-called net neutrality protections also cover wireless networks. That would prevent AT&T or other operators from blocking services like Skype on their mobile networks.

Skype has proven to be massively popular on the iPhone and iPod Touch reaching over one million downloads in the first two days of availability.

Article Link: Skype for iPhone Sparks Battle Between Consumers and Carriers

[1Zach1]

Good, the more competition between carriers/developers the better for consumers.

[moonzilla]

pardon my french, but EFF the carriers

[roberry82]

Originally Posted by 1Zach1

Good, the more competition between carriers/developers the better for consumers.

Agreed. Not to mention a strong push forward in the use of cellular signals for tasks other than talking on them through traditional methods.

Skype made headlines for allowing VoIP, not VoCell. LOL. No wonder Cell Carriers would get upset... basically use your unlimited data plan to make all your calls on and never worry about minutes again. That's how it should be, anyway.

[bytethese]

Hmm, I've never used Skype, I might have to give it a try and I am often on a WiFi connection.

[Bevz]

Skype works over cellular network with OS 3 beta... Really? I know what i'll be trying out later....

[wonderbread57]

editorial correction: Apple is not making a concession by disallowing Skype over 3G.

While I don't see why someone would prefer Skype to making a 3G call (except for international). I think Apple is wise to introduce Skype which will open the door for Skype video conferencing over Wi-Fi with the new iPhone's speculative front facing cam. ATT's network will likely not be ready for video conferencing by the next release of iPhone but such a feature over Wi-Fi could be good promotional material.

[trunkster]

Skype works over edge on iPhone 3.0 firmware as well. I thought it was really going to suck but it wasn't that bad. I haven't tried carrying on a long conversation over it though.

[born4sky]

at least they should allow 3g data usage if u calling outside your country.

[BongoBanger]

I wouldn't worry too much. The UK carriers tried to kick up a fuss when Nokia announced the N97 would have Skype integrated into it.

They caved in when Nokia pointed out that they could pretty much sink any of them by blocking their handsets from being sold by those carriers who didn't play ball.

[mikeinternet]

AT&T should worry more about making there own service work better if they want people to stay away from this.

Won't the inevitable iChat app have the same functionality? (minus the connection to actual land lines) Does that mean T-Mobile will be looking to ban an Apple app?

[Baumi]

From the article:

T-Mobile in Germany, however, threatened that it may take action to prevent its customers from using Skype on the iPhone.

I'm not a big fan of T-Mobile, but it should be noted that, as far as I gather from the reporting in German media, they're only threatening to filter traffic on T-Mobile's own public WiFi hotspots. They're not talking about killing off Skype on German iPhones altogether.

Jens

[LoganT]

I'd rather pay 50 bucks for unlimited 3G and be able to use Skype on the cellular network. Instead of paying 70 dollars for minutes I rarely use and 30 dollars for internet.

[iPhoneNYC]

I understand the appeal of Skype but Truphone has been available for almost a year doing exactly the same thing...

[smartaleck]

All this deliniation of data, voice, text... it's all complete and utter bullsh*t.

You pay for 1's and 0's. You should be able to use them however you like.

An example of this rampant exploitation of the system? A recent NY Times article pointed out that it costs cell carriers next to nothing for text messages:

http://gadgets.boingboing.net/2008/1...k-times-t.html

Likewise, your cable co tells you that you can get a "discount" on VOIP phone if you sign up with them for a year. It costs them pennies a month for VOIP phone.

Think about it, Skype is free, or $3 per month to call land lines and cell phones in America. Why is that? It's because it costs so little to make those calls.

AT&T charging for separate text/data/phone? It's all complete nonsense based on the consumer not knowing that everything is running through the exact same pipe.

Again, voice calls, texts, IM's, SMS, MMS, 3g data to watch Youtube videos: all identical. All 1's and 0's.

Skype is EXACTLY what the consumer needs to make the most out of the "unlimited" data that we pay so much for.

[ziggyonice]

Having it on wi-fi makes perfect sense. The desktop version of Skype would requires wi-fi (or an Internet connection) to work, so there's no reason for them to block the iPhone version over wi-fi.

[iphoneCDN]

You can easily use Skype for the iPhone over 3G now. Just install Voipover3G via Cydia and you're golden: http://www.iphoneincanada.ca/tips-tr...n-your-iphone/

[lftrghtparadigm]

Originally Posted by smartaleck

All this deliniation of data, voice, text... it's all complete and utter bullsh*t.

You pay for 1's and 0's. You should be able to use them however you like.

An example of this rampant exploitation of the system? A recent NY Times article pointed out that it costs cell carriers next to nothing for text messages:

http://gadgets.boingboing.net/2008/1...k-times-t.html

Likewise, your cable co tells you that you can get a "discount" on VOIP phone if you sign up with them for a year. It costs them pennies a month for VOIP phone.

Think about it, Skype is free, or $3 per month to call land lines and cell phones in America. Why is that? It's because it costs so little to make those calls.

AT&T charging for separate text/data/phone? It's all complete nonsense based on the consumer not knowing that everything is running through the exact same pipe.

Again, voice calls, texts, IM's, SMS, MMS, 3g data to watch Youtube videos: all identical. All 1's and 0's.

Skype is EXACTLY what the consumer needs to make the most out of the "unlimited" data that we pay so much for.

Thank you. That's everything I was going to say.

This needs to be posted and reposted and reposted.

[macduke]

If its ruled that Skype should be allowed over 3g, watch out for brand new data tiers from AT&T, with higher prices to follow. I wouldn't be surprised to see 500mb caps so that people will buy more expensive $40-60 data plans to help offset the loss on their voice plans. I'm all for internet freedom, but when it comes to profit margins, something has got to give.

[rockosmodurnlif]

From reading the original Skype on iPhone thread, I thought the software was extremely buggy (although it's rating is 3 stars).

Is there any data on actual usage versus just number of downloads?

[Shookster]

Considering that recipients must have Skype (and must therefore be near a Wi-fi point at the time) and that you've already paid for a fixed number of minutes through AT&T, I don't see this as a big game changer. You've already paid for the minutes - you're not really getting any benefit unless you exceed your allotted number of minutes.

[smartaleck]

Seriously man...

It's like the water utlity company telling you that to have water going to your shower will cost $20, and to your sink $20, but if you bundle those services together, they'll give it to you for $30.

I mean, charge whatever you need to make your business run, but don't lie to us and collude to limit competition.

Originally Posted by lftrghtparadigm

Thank you. That's everything I was going to say.

This needs to be posted and reposted and reposted.

[BlueRevolution]

Canada?

[macduke]

Originally Posted by ziggyonice

Having it on wi-fi makes perfect sense. The desktop version of Skype would requires wi-fi (or an Internet connection) to work, so there's no reason for them to block the iPhone version over wi-fi.

Some people don't even use wifi. A lot of students I know just have 3g data cards for their laptop along with an AT&T phone (with no data plan on the phone). Are they going to restrict them from using Skype over 3g? It's just a little less convenient than having it on your phone. Or if you are using wifi, what about people who have AT&T DSL? Are they blocked because it competes with another AT&T product?

[tbertran]

Originally Posted by smartaleck

AT&T charging for separate text/data/phone? It's all complete nonsense based on the consumer not knowing that everything is running through the exact same pipe.

Again, voice calls, texts, IM's, SMS, MMS, 3g data to watch Youtube videos: all identical. All 1's and 0's.

Although I am no fan of "Big Cell" Business, keep in mind that a rather costly infrastructure is needed for those 0's and 1's to go anywhere. In other words, it is cheap to use now because large investments were made in the past.
Your argument is similar to me complaining about my landlord charging me $1,500 of monthly rent for my 2BR when all I'm really using is the roof over my head and that, in itself, is not worth $1,500.

Most everybody under 30 in this country grew up with the idea that you can get something for nothing... If only.