Microsoft Buys Skype: Does This Mean Carriers Will Shun Windows Phone 7?

Microsoft Promises That Skype Technology Will Make It Into WP7, But Will AT&T & Verizon Refuse To Carry Any New Windows Phones?

The biggest tech news of the day – well, counting all the Android news from Google I/O and the revelations from Apple testifying in front of the US Senate, maybe the third biggest tech news of the day – was that Microsoft is purchasing VoIP provider Skype outright for $8.5 billion. It’s a high price to pay, but could it end up ultimately hurting Microsoft’s Windows Phone 7 business?

Microsoft may have just alienated their carrier partners, AT&T and Verizon, by buying Skype. Analyst Craig Moffett told BusinessWeek that the Skype acquisition was a “head scratcher” because of how it will complicate Microsoft’s relationship with AT&T and Verizon regarding WP7. Today, Microsoft announced that Skype technology would be brought to the Xbox 360 and yes, Windows Phone 7. Obviously, AT&T and Verizon (and other carriers) may wonder why they’re going to support an operating system that has a built-in way to cut into their voice traffic revenue.

There are a number of VoIP calling apps out there for the iPhone and Android that allow you to make WiFi calls on your AT&T and Verizon phones. It was big news when Verizon embraced VoIP calling when they allowed Skype Mobile onto their Android phones. But, if Skype Mobile and the “free WiFI calling” comes standard on every Windows Phone 7 device, carriers might see that as a bigger threat than the current smartphones where you have to proactively go out and get an app to get WiFi calling.

Microsoft launched Windows Phone 7 last year, and it looks to be doing poorly or moderately, depending on who you ask. AT&T has been designated as the flagship WP7 carrier by Microsoft, of sorts, but Verizon is expected to only be getting their first WP7 phone, the HTC Trophy, sometime soon. I think it would be easier for both carriers to let WP7 die on the vine if they thought Skype Mobile threatened their voice business.

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  • 2 Comments / Add Your Response?

    1. Bill Jones says:

      This is a ridiculous idea, that Microsoft having Skype will hurt carriers.

      Skype (before MS bought them) was not going to support WP7, like it does for Android and iOS and a variety of less “smart” handsets. Droids from Verizon come pre-installed with Skype – as does the iPhone, why would it’s presence on WP7 be any more of a problem than on those devices?

      The only “negative” is that now WP7 devices will take a little more sales away from those devices. Actually, if the argument in this article were correct, then Verizon should have been pushing WP7 devices MUCH stronger than they have, since there is NO Skype available for WP7 like there is for Droid and iPhone. (The first WP7 device is due for Verizon, possibly, tomorrow (may 12th).

      I don’t know what the agenda of this article is, but it has nothing to do with the point its trying to make. Simply more MS bashing.

      Seriously – this article totally failed to mention that Skype has been available on droid and iOS, let alone that it is installed out of the box on them. If anything, the “danger” is that skype for WP7 will eventually outshine the support on the other devices.

      Please try to publish less biased material in the future. And try to show all sides fairly and try to do a little homework befor you print such drivel.

    2. Bill Jones says:

      whoops – I missed a statement – I think it was hidden behind an ad. I stand by most of what I previously posted – but the article does indeed mention that Verizon allows it – but not that it is pre-installed on droid devices. The argument is still pointless.

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